ILNews

Justices reaffirm precedent on worker's comp claims

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Supreme Court has upheld a decision by the state Worker's Compensation Board dismissing an injured trucker's claim, finding the employee's settlement with a third-party driver voided whatever responsibility the company had on the issue.

But in deciding the case, the justices also called out an Indiana Court of Appeals panel for stepping away from a precedent in place since at least 1988 by doing something that should be left up to the state's lawmakers.

The unanimous ruling came Thursday afternoon in Jimmie C. Smith v. Champion Trucking Company, Inc., No. 93S02-0906-EX-276. The appeal stems from a matter before the Worker's Compensation Board of Indiana, relating to an August 2003 accident in Ohio by a truck driver working for Jeffersonville-based Champion Trucking. After the crash, the company paid $4,342 of Smith's initial medical expenses through worker's compensation coverage. About five months after leaving the company in August 2004, Smith asserted a permanent injury and tried to adjust his claim to get compensation for additional medical expenses. He also retained another attorney to try and recover from the motorist who'd mostly caused the accident in Ohio.

While Champion wasn't notified of any litigation or settlement negotiations, Smith's worker's compensation attorney at one point notified the company about the intent to sue that third-party driver. The company notified Smith's private attorney in July 2005 about its entitlement to a lien on any settlement proceeds for what it had already paid the former worker, but Smith settled for $10,342 that same month without notifying the former employer. The settlement released that third-party driver from any liability for the accident and left the dispute between Smith and Champion.

Smith's attorney paid 75 percent of the medical lien amount to Champion and kept 25 percent for the attorney's fees authorized by the worker's compensation statute, and the company soon after moved to dismiss Smith's claim adjustment application because of the settlement.

In July 2008, the Worker's Compensation Board ruled that Smith's settlement terminated Champion's liability because of Indiana Code § 22-3-2-13 (2004), which bars employees from getting any additional employer compensation after a third-party settlement. Smith appealed that the provision didn't apply because he'd settled for less than what worker's compensation had provided.

Past precedent generally addressed that topic and provided some guidance, which was an issue the Supreme Court hadn't specifically ruled on in the past. In February 2009, an Indiana Court of Appeals three-judge panel reversed the board's determination and found Smith should be allowed to continue his worker's compensation claim pending at the time of settlement. Judges Mark Bailey, Michael Barnes, and Paul Mathias relied on DePuy, Inc. v. Farmer, 847 N.E.2d 160, 164 (Ind. 2006), which held that a "final judgment" against third parties effectively ends an employer worker's compensation liability.

At that time in DePuy, justices recognized the issue that Smith is now raising but specifically chose not to address the question.

But with Smith's case now on transfer, the Indiana Supreme Court held differently and reinforced the caselaw that settlements, regardless of the amount, do in fact negate any further company responsibility for worker's compensation coverage if that person hasn't first gotten consent. The justices applied what it called a long line of state decisions to support the proposition. Specifically the high court said Paragraphs 1 and 2 of Section 13 of the Worker's Compensation Act impose a bright-line rule that's long been recognized by Indiana courts before this case.

"For at least twenty years, the Court of Appeals has held that if an employee settles with a third party without first obtaining employer's consent, the employer's sole avenue for reimbursement of worker's compensation payments is through the employee, and the employer may not continue to pursue the third party," Justice Theodore Boehm wrote for the court, citing State v. Mileff, 520 N.E. 2d 123 (Ind. Ct. App. 1988). "Although some other jurisdictions do not adhere to the same interpretation of similar provisions, the Court of Appeals, citing the interest of finality from the point of view of the third party, has long held that once an employee releases the third party from liability related to the injury-causing accident, the employer may not continue to pursue that third party. Given this longstanding precedent on an issue of statutory interpretation, we believe it is up to the legislature to implement any change."

The justices affirmed the full compensation board's dismissal of Smith's adjustment application, and Justice Brent Dickson noted that he concurred in result.

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
2015 Distinguished Barrister &
Up and Coming Lawyer Reception

Tuesday, May 5, 2015 • 4:30 - 7:00 pm
Learn More


ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

ADVERTISEMENT