Grace Hospice of Oklahoma, LLC v. Bradley

2007 OK CIV APP 36, 159 P.3d 297, 2006 Okla. Civ. App. LEXIS 164, 2006 WL 4503948
CourtCourt of Civil Appeals of Oklahoma
DecidedSeptember 5, 2006
DocketNo. 102,412
StatusPublished

This text of 2007 OK CIV APP 36 (Grace Hospice of Oklahoma, LLC v. Bradley) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grace Hospice of Oklahoma, LLC v. Bradley, 2007 OK CIV APP 36, 159 P.3d 297, 2006 Okla. Civ. App. LEXIS 164, 2006 WL 4503948 (Okla. Ct. App. 2006).

Opinion

JOHN F. REIF, Judge.

{1 This case concerns an order vacating a joint petition settlement. Claimant agreed to the joint petition at a time when he was not represented. Some seventeen days after the joint petition settlement was approved and filed, Claimant hired counsel who filed a motion to vacate the settlement. The motion did not set forth a reason or grounds for the court to vacate the settlement; however, the argument of Claimant's counsel at the hearing on the motion focused on the stress Claimant was under as the result of his medical and financial situation. Counsel for Employer and Insurance Carrier acknowledged that Claimant was under stress, but emphasized Claimant was competent, informed about the facts and consequences, and afforded extra time by the Court to consider the settlement. At the conclusion of the hearing on the motion to vacate, the trial court concluded "fundamental fairness" supported vacating the joint petition settlement, because Claimant, "as an unrepresented participant, [bad] a lot to digest in a short period of time (especially considering his cireum-stances)." This order was affirmed by a three-judge panel.

T2 Here on review, Employer and Insurance Carrier argue that the trial court erred in vacating the joint petition settlement, because (1) the trial court lost jurisdiction upon the voluntary satisfaction of the judgment, (2) the trial court's vacation was not an exercise of sound discretion, nor based upon a sufficient cause, and (8) the motion to vacate failed to meet basic due process requirements for notice. Upon review, we find no error in these regards by either the trial court or three-judge panel and, therefore, sustain the order vacating the joint petition settlement.

L.

13 Employer and Insurance Carrier point out that Claimant (1) received the payment set forth in the joint petition settlement and (2) signed an acknowledgment and receipt of such payment which was filed the same day [300]*300as the joint petition settlement was approved. Employer and Insurance Carrier argue that these circumstances demonstrate a "voluntarily satisfied judgment [that] moots" relief by way of appeal or vacation by the trial court, as discussed in Stites v. Duit Construction Co., 1995 OK 69, ¶15, 903 P.2d 293. Employer and Insurance Carrier stress that the effect of a voluntarily satisfied judgment is "loss of jurisdiction," because "onee a judgment has been paid and fully satisfied according to its terms it becomes extinguished." Mitchell v. Lindly, 1960 OK 115, 12, 351 P.2d 1063, 1067 (citation omitted). While we agree that this rule governs judgments in cases of law and equity, we do not think it can be applied to adjudications by the workers' compensation court and, in particular, approved joint petition settlements.

T 4 In reviewing the law pertaining to joint petition settlements and the power of the workers' compensation court to vacate its orders and decisions, we have found three reasons for not applying the voluntarily satisfied judgment rule to joint petition settlements. The first reason is based on the discretionary nature of the decision to approve a joint petition settlement.

T5 "An award made pursuant to the provisions of [85 0.S. § 84 ], differs from any other award made by the [workers' compensation tribunal] in that it is not made as a matter of right upon application of the parties but in exercise of the sound discretion and independent judgment of the [tribunal] after a hearing and after a full and complete investigation into all of the facts and a determination that such action would be for the best interest of all of the parties." Cavender v. Wofford Drilling Co., 1942 OK 97, ¶3, 123 P.2d 261, 263 (citation omitted). A timely proceeding to vacate an approved joint petition settlement allows the workers' compensation tribunal to re-examine its exercise of discretion, not "based upon a change in the facts, but [for] a change in opinion regarding the facts involved and the proper conclusion to be drawn therefrom and the award to be made thereon." Wm. A. Smith Constr. Co. v. Price, 1936 OK 833, ¶ 12, 63 P.2d 108, 111 (per curiam) (citation omitted).

T6 The second reason is that the legislature has expressly provided for the workers' compensation tribunal to exercise continuing jurisdiction over each case and to make such modifications and changes with respect to former findings or orders as may, in the court's opinion, be justified. 85 O.S. 2001 § 84. The Oklahoma Supreme Court has long recognized that the continuing jurisdiction of the workers' compensation tribunal extends for the period of time provided for seeking review by the appellate courts. Conrad v. State Industrial Commission, 1937 OK 675, ¶9, 73 P.2d 858, 861 (per curiam). This continuing jurisdiction includes awards made upon joint petitions. Id.

17 The Supreme Court has also said that the right of appeal set forth in the statute authorizing joint petitions reflects legislative intent that "the award should not become final and absolute until the period for [seeking review by the appellate courts] has expired." Id. In particular, the court concluded, "until the expiration of the period provided for review[,] an award made upon joint petition can have no greater dignity or solemnity than any other award or decision." Id.; see also Higley v. Schlessman, 1956 OK 18, ¶ 14, 292 P.2d 411, 415.

T8 The third reason for not applying the voluntarily satisfied judgment rule to a joint petition settlement is that the Oklahoma Supreme Court initially recognized a finality rule that was analogous to the voluntarily satisfied judgment rule. In the case of Indian Territory Iluminating Oil Co. v. Ray, 1931 OK 735, ¶14, 5 P.2d 383, 388, the Oklahoma Supreme Court said:

[It was the legislative intent to vest the commission with discretion in determining whether or not it should make a final settlement of compensation, and it is clear that, in the event the commission decides it is for the best interest of both parties to said petition that a final award be made and makes an award accordingly, the same shall be final as to the rights of all parties to the petition, and that thereafter it shall mot have jurisdiction over any claim for the same injury or any results arising from same.

[301]*301The Supreme Court concluded "the State Industrial Commission is without jurisdiction to vacate an award entered [upon] approving a settlement made on joint petition." Id. at 'I 16, 5 P.2d at 388.

{ 9 In the Conrad case, however, the court said the rule in the Ray case was limited to proceedings to vacate brought after the time for seeking review by the appellate courts. The Court "has not heretofore directly decided whether an award made pursuant to [the statute authorizing joint petitions]! remains subject to any further consideration" by the workers' compensation tribunal within the time for seeking review by the appellate courts. 1987 OK 675, 18, 73 P.2d at 861. As noted, the Conrad case held that the workers' compensation tribunal has continuing jurisdiction to vacate awards based on joint petitions during the period of time allowed for filing an appeal.

110 In summary, we decline to apply the voluntary satisfaction of judgment rule to joint petition settlements under workers' compensation law given (1) the discretionary nature of the trial court's approval of joint petitions, (2) the express statutory authority for continuing jurisdiction, and (8) the evolution of case law interpreting the finality of joint petitions vis-a-vis continuing jurisdiction.

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Related

Schepp v. Hess
770 P.2d 34 (Supreme Court of Oklahoma, 1989)
Higley v. Schlessman
1956 OK 18 (Supreme Court of Oklahoma, 1956)
Snyder v. Smith Welding & Fabrication
746 P.2d 168 (Supreme Court of Oklahoma, 1987)
Mitchell v. Lindly
1960 OK 115 (Supreme Court of Oklahoma, 1960)
Stites v. DUIT Const. Co., Inc.
1995 OK 69 (Supreme Court of Oklahoma, 1995)
Noel v. Kozak
1931 OK 156 (Supreme Court of Oklahoma, 1931)
Indian Territory Illuminating Oil Co. v. Ray
1931 OK 735 (Supreme Court of Oklahoma, 1931)
Wm. A. Smith Const. Co. v. Price
1936 OK 833 (Supreme Court of Oklahoma, 1936)
Cavender v. Wofford Drilling Co.
1942 OK 97 (Supreme Court of Oklahoma, 1942)
Conrad v. State Industrial Commission
1937 OK 675 (Supreme Court of Oklahoma, 1937)
Kline v. State ex rel. Oklahoma Water Resources Board
1981 OK 156 (Supreme Court of Oklahoma, 1981)

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2007 OK CIV APP 36, 159 P.3d 297, 2006 Okla. Civ. App. LEXIS 164, 2006 WL 4503948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grace-hospice-of-oklahoma-llc-v-bradley-oklacivapp-2006.