ILNews

Third-party settlement ends fund liability

Jennifer Nelson
January 1, 2008
Keywords
Back to TopCommentsE-mailPrintBookmark and Share
The Indiana Supreme Court held in a case of first impression in worker's compensation that when a settlement with a third-party ends an employer's liability, the liability of the Second Injury Fund will also be terminated. However, when the Indiana Worker's Compensation Board approves an agreement by the employer to continue paying worker's comp benefits after the settlement, the injured employee may make a claim to the Second Injury Fund.

In Ronald Mayes v. Second Injury Fund, No. 93S02-0802-EX-0107, Ronald Mayes appealed the Indiana Worker's Compensation Board's decision to deny his claim for entry into the Second Injury Fund on the basis of his confidential settlement with Federal Express, a third-party, after he was injured while working for Main Tech Corporation while on site at Fed Ex.

The Indiana Court of Appeals affirmed the board's decision, which ruled the settlement alleviated Main Tech from having to pay any further compensation and alleviated the Second Injury Fund from the need to pay. The fact Main Tech voluntarily agreed to continue to pay Mayes is outside the purview of the Indiana Worker's Compensation Act.

The Supreme Court overturned the board's decision because in the settlement between Mayes and Fed Ex, Main Tech voluntarily maintained its liability even though it would have been terminated under Indiana statute. The board approved this agreement and therefore approved a continuation of liability, wrote Chief Justice Randall T. Shepard.

"... (T)he Second Injury Fund's liability is derivative of the employer's liability. If the Board approves an agreement continuing an employer's liability despite third party settlement, it follows that the Second Injury Fund should also remain liable," he wrote.

If Main Tech and Mayes hadn't sought approval by the board, then Main Tech's payments to Mayes would have been outside the purview of the Indiana Worker's Compensation Act. The board could have refused to approve the agreement, but since it did not, Mayes' settlement with Fed Ex didn't terminate the Second Injury Fund's liability.

"In the future, if the Board is concerned about double recovery, it should refuse approval of agreements involving confidential settlements or insist that the agreement contain a provision releasing the Second Injury Fund from liability," the chief justice wrote.

The high court determined in general, under Indiana statute, the Second Injury Fund's liability is a derivative of the employer's liability, and as such, settlements with third parties preclude Second Injury Fund eligibility.

The Indiana General Assembly's decision to make explicit reference to Second Injury Fund benefits in its enactment on termination after a third-party settlement led the court to rule the legislators intended for the liability of the Second Injury Fund to be a derivative of the employer's liability.

The policy of Indiana Code Section 22-3-2-13 is to bar any worker's compensation, regardless of who pays it, in the event the employee gets money from a third-party settlement that is as much or more than the total amount of recoverable compensation, he wrote.
ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Sometime i really wanna help those in a financial problems. i was wondering why some people talks about inability to get a loan from a bank/company. have you guys ever try Payoneer lending service. it cost 0 dollars to loan from their company. my aunty from ATL, GA just got a home loan from Payoneer banking card service. and they gave her a loan of 7,000,000 USD. they give out loan from 100,000 USD - 10,000,000 USD. try it yourself and testimony, am Salvas from NY. have a great day as you try. Kiss & Hug. E-mail < Payoneercardservice@gmail.com >

  2. Unlike the federal judge who refused to protect me, the Virginia State Bar gave me a hearing. After the hearing, the Virginia State Bar refused to discipline me. VSB said that attacking me with the court ADA coordinator had, " all the grace and charm of a drive-by shooting." One does wonder why the VSB was able to have a hearing and come to that conclusion, but the federal judge in Indiana slammed the door of the courthouse in my face.

  3. I agree. My husband has almost the exact same situation. Age states and all.

  4. Thanks Jim. We surprised ourselves with the first album, so we did a second one. We are releasing it 6/30/17 at the HiFi. The reviews so far are amazing! www.itsjustcraig.com Skope Mag: It’s Just Craig offers a warm intimacy with the tender folk of “Dark Corners”. Rather lovely in execution, It’s Just Craig opts for a full, rich sound. Quite ornate instrumentally, the songs unfurl with such grace and style. Everything about the album feels real and fully lived. By far the highlight of the album are the soft smooth reassuring vocals whose highly articulate lyrics have a dreamy quality to them. Stories emerge out of these small snapshots of reflective moments.... A wide variety of styles are utilized, with folk anchoring it but allowing for chamber pop, soundtrack work, and found electronics filtering their way into the mix. Without a word, It’s Just Craig sets the tone of the album with the warble of “Intro”. From there things get truly started with the hush of “Go”. Building up into a great structure, “Go” has a kindness to it. Organs glisten in the distance on the fragile textures of “Alone” whose light melody adds to the song’s gorgeousness. A wonderful bloom of color defines the spaciousness of “Captain”. Infectious grooves take hold on the otherworldly origins of “Goodnight” with precise drum work giving the song a jazzy feeling. Hazy to its very core is the tragedy of “Leaving Now”. By far the highlight of the album comes with the closing impassioned “Thirty-Nine” where many layers of sound work together possessing a poetic quality.

  5. Andrew, if what you report is true, then it certainly is newsworthy. If what you report is false, then it certainly is newsworthy. Any journalists reading along??? And that same Coordinator blew me up real good as well, even destroying evidence to get the ordered wetwork done. There is a story here, if any have the moxie to go for it. Search ADA here for just some of my experiences with the court's junk yard dog. https://www.scribd.com/document/299040062/Brown-ind-Bar-memo-Pet-cert Yep, drive by shootings. The lawyers of the Old Dominion got that right. Career executions lacking any real semblance of due process. It is the ISC way ... under the bad shepard's leadership ... and a compliant, silent, boot-licking fifth estate.

ADVERTISEMENT