Justices rule on case about worker's compensation, damages

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Upholding a trial court ruling in a case stemming from a construction site accident, the Indiana Supreme Court has offered guidance for future trials about how juries should calculate a plaintiff’s already-paid compensation benefits when determining punitive damage awards.

The unanimous ruling today comes in The Travelers Indemnity Company of America v. Jerry Jarrells, No. 29S02-0908-CV-378, which comes from Hamilton Superior Judge William Hughes. The case involves a Hamilton County construction site accident in 2002 where steel worker Jerry Jarrells was seriously injured when an unbraced concrete block wall fell on him. He received worker’s compensation from Travelers, and was later awarded more than $500,000 in a third-party personal injury action against the general contractor and subcontractor. At trial, the jury determined his injury value was $925,000 and the jury was given an instruction that they should consider Jarrells' collateral source payment - nearly $66,000 of worker’s compensation payments - when determining the amount of damages.

Judge Hughes held that under the instructions given in the case, the jury had already deducted the amount of worker’s compensation payments from its award and there was no recovery for injury previously covered by that worker’s compensation. Travelers appealed the denial of its motion for summary judgment on whether Jarrells should have to pay back the pro rata value of the compensation benefits he received.

In three separate opinions last year, Indiana Court of Appeals judges disagreed as to the application of a 2005 case about worker’s compensation set-off and jury instruction. The majority found Travelers to be entitled to summary judgment although for different reasons, presuming the jury followed the trial court's instructions and applied the law contained within it – meaning Travelers is entitled to a statutory lien and or reimbursement. The panel reversed and remanded, but the justices granted transfer.

Finding both the trial and appellate courts’ interpretations plausible, the justices held that Judge Hughes’ reading should be affirmed because the trial court is in the best position to rule on a jury trial issue when everything appeared to be in order. In this case, Jarrells is not required to repay his employer’s worker’s compensation carrier after receiving a judgment against a third-party tortfeasor, Justice Theodore Boehm wrote.

“However, in future trials where the trier of fact finds the evidence establishes that the plaintiff has received payment for some of the damages from other sources, the award should include those damages, but only to the extent that the evidence establishes an obligation to repay,” Justice Boehm wrote.


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  1. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  2. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

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  5. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.