Enforcement of Workers’ Compensation Settlements

In Florida, most workers’ compensation cases settle through mediation rather than going to trial. However, disputes can still arise when trying to finalize the settlement terms. This can happen if the injured worker changes their mind or if both parties can’t agree on the details. It’s important for both sides to carefully consider and agree on all the terms before finalizing the settlement. Getting a successful workers’ compensation settlement can be complicated because of psychological issues like anger towards an employer and disputes with the insurance company. Mediators can help the parties work through these issues, but they can still cause problems after mediation. In Florida, workers’ compensation settlements are governed by contract law, and there are specific laws for settling denied claims. These laws require the parties to agree on essential terms and file a joint petition for settlement, which is then approved by a judge. There are different rules for workers’ compensation settlements depending on whether the person is represented by a lawyer or not. If the person has a lawyer, the judge doesn’t have to approve the settlement, unless it involves the lawyer’s fee. But if the person doesn’t have a lawyer, the judge has to approve the settlement to make sure it’s fair. Some court cases have discussed whether the judge has the power to decide on settlements for people with lawyers, and the rules are a bit complicated. In the past, JCCs had control over workers’ compensation cases and settlement agreements. In a case in 2004, the employer/carrier appealed a decision by a JCC about a settlement agreement. The court reversed the decision and said that the JCC did have the authority to enforce settlements. In a later case in 2008, the Florida Supreme Court also said that the JCC can enforce settlements, even after a law was passed in 2001 allowing represented claimants to settle without JCC approval. In Florida, the workers’ compensation court has the power to approve settlement agreements. If a worker doesn’t have a lawyer and signs a settlement, it’s not valid unless the court approves it. This means that the court can make sure the worker isn’t being taken advantage of. If there’s a disagreement about a settlement, the court can enforce it as long as it’s specific and agreed upon by both parties. In one case, an agreement was enforced even though someone died before they could sign the papers. In another case, a mediation agreement was not enforceable because it said more documents needed to be signed later. Another case shows that verbal settlement agreements can be enforced if there is proof that both parties agreed without any conditions. Simply put, in both the Quinlan and Munroe cases, the settlement agreements were not enforceable because they were contingent on certain things happening, and those things didn’t happen. In the Munroe case, the employer’s lawyer didn’t have the authority to agree to the settlement, so it wasn’t a done deal. So, the agreements were not binding, and the parties could change their minds before everything was finalized. Basically, when parties settle a case, they need permission from their clients and it must be very clear. In one case, a person settled a different claim without telling their lawyer, and it ended up causing problems for their workers’ compensation case. So, be careful when settling cases and always talk to your lawyer about it. In workers’ compensation cases, settlements can be complicated. Lawyers and mediators need to work together to overcome obstacles and draft agreements with specific language to ensure successful settlements. They need to understand both workers’ compensation and contract law, and have the skills to handle difficult emotions during the mediation process. These are references to legal cases and statutes related to workers’ compensation in Florida. They are used to support legal arguments and show previous court decisions. They also reference Medicare rules and how they relate to workers’ compensation cases. This article discusses how settlement agreements in workers’ compensation cases are binding and cannot be rescinded, even if one party has “buyers remorse.” It also mentions that courts can only look beyond the language of a contract if the terms are unclear. The article does not talk about enforcing partial agreements or reasons to overturn settlements for fraud, coercion, or mistakes. The author, a lawyer with many years of experience, specializes in workers’ compensation defense. This column is from the Workers’ Compensation Section of the Florida Bar. It’s about promoting duty and service to the public and improving the legal system. The section’s chair is Tuwana J. McMillan and the editor is Pamela L. Foels.

Source: https://www.floridabar.org/the-florida-bar-journal/enforcement-of-workers-compensation-settlements/