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Judges differ in ruling application in set-off case

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Indiana Court of Appeals judges couldn't agree on the application of a previous case involving the set-off of workers' compensation payments, leading to a split court and three separate opinions in an insurance company's attempt to recoup a portion of workers' compensation benefits following a jury trial.

In Travelers Indemnity Company of America v. Jerry Jarrells, No. 29A02-0807-CV-669, Travelers claimed it was entitled to a statutory lien and/or reimbursement pursuant to Indiana Code Section 22-3-2-13 for the pro rata value of workers' compensation payments it made on behalf of Jerry Jarrells. Jarrells was injured while at work on a construction site and received workers' compensation from Travelers. Jarrells was awarded more than $500,000 in a third-party personal injury action against the general contractor and subcontractor. At trial, the jury was given an instruction that they should consider Jarrells' collateral source payment - nearly $66,000 of workers' compensation payments - when determining his amount of damages.

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.

Judges Carr Darden, Nancy Vaidik, and Patricia Riley disagreed as to the application of Pendleton v. Aguilar, 827 N.E.2d 614, 621 (Ind. Ct. App. 2005), to the instant case. In Pendleton, the appellate court reversed a trial court's order that granted the defendant tortfeasor a set-off for workers' compensation payment after the jury received evidence of such payments and heard the same jury instruction as in Jarrells' case.

The majority - Judges Darden and Vaidik - found Travelers to be entitled to summary judgment although for different reasons. The appellate court presumed the jury followed the trial court's instructions and applied the law contained within it; thus, Travelers is entitled to a statutory lien and or reimbursement, wrote Judge Darden.

The judges couldn't agree on the application of Pendleton to the outcome of this case. Judge Darden found Pendleton to be distinguishable in that it involves an insurer, which pursuant to its contract of insurance and Indiana's statutory lien, seeking a pro rata reimbursement of the benefits after the worker recovered a judgment for damages against a third-party.

"By its language in Indiana Code section 22-3-2-13, the Indiana Legislature expressed a clear intent to create a statutory lien in and for the benefit of an employer's compensation insurance carrier who has made worker's compensation payments on behalf of an injured worker, where the injured worker has recovered a judgment against a third party who has been found liable for the worker's injuries," he wrote.

Judge Vaidik, in her concurring in result in a separate opinion, agreed Pendleton is distinguishable from Jarrells' case but not for the reasons stated by Judge Darden. She wrote it's because in Pendleton, he was a Florida resident and received workers' compensation benefits from the Florida Workers' Compensation Insurance Guaranty Fund rather than benefits pursuant to Indiana law. There's nothing in that case to indicate he was required to repay the benefits or that the jury was informed he was required to repay them. Judge Vaidik found Pendleton doesn't supersede or excuse the statutory lien obligation, so she concurred in result.

Judge Patricia Riley dissented, writing the majority attempts to distinguish Pendleton on the basis it involves an insurer seeking a pro rata reimbursement, but she believes Pendleton is on point for the situation in the instant case.

"Because the jury was instructed that Jarrells could not recover more than once for any item of loss sustained, it adjusted its damage award downwards, as was done in Pendleton," she wrote. "By enforcing the lien, the majority is in effect imposing a double set-off on Jarrells."

The majority remanded the case with instructions to enter judgment in favor of Travelers and to determine the value of Travelers' lien and pro rata share for purposes of reimbursement.

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  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

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