MacKey v. Kerr-McGee Chemical Co.

312 S.E.2d 565, 280 S.C. 265, 1984 S.C. App. LEXIS 381
CourtCourt of Appeals of South Carolina
DecidedFebruary 6, 1984
Docket0063
StatusPublished
Cited by24 cases

This text of 312 S.E.2d 565 (MacKey v. Kerr-McGee Chemical Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacKey v. Kerr-McGee Chemical Co., 312 S.E.2d 565, 280 S.C. 265, 1984 S.C. App. LEXIS 381 (S.C. Ct. App. 1984).

Opinion

Per Curiam:

At issue in this appeal is whether a worker’s compensation claimant, prior to execution of formal closing papers and approval by the South Carolina Industrial Commission, can unilaterally repudiate an offer of settlement that has been accepted by his attorney. The Commission held that a settlement agreement entered into by Attorney Hugo M. Spitz on behalf of his client, the respondent Lorton Mackey, was a legally binding and enforceable settlement; however, the Honorable Klyde Robinson, Circuit Judge, in an order dated April 21,1981, reversed the Commission. Kerr-McGee Chemical Company and Home Insurance Company appeal. We affirm.

Because Judge Robinson’s order properly sets forth and disposes of the principal issue presented to us, his order, as we have modified and supplemented it, is adopted and published as our view. The modifications and supplements are reflected by either ellipses or bracketed material. Following Judge Robinson’s order, we have added an addendum and a mandate.

ORDER OF JUDGE ROBINSON

[The claimant Mackey, an employee of Kerr-McGee Chemical Company,] appeals from an Order of the South Carolina Industrial Commission, dated April 30, 1979, which provided that a settlement agreed upon by and *267 between the parties through their attorneys was a legally binding and effective settlement that should be enforced. [T]he Order must be reversed.

... A hearing [on Mackey’s claim] was scheduled by Hearing Commissioner [Sarah] Leverette for August 23,1977, at which time all parties, counsel, and witnesses were present. Prior to the hearing, claimant’s and carrier’s respective attorneys agreed to settle the case for Six Hundred Dollars ($600.00). Although there is a dispute between claimant and his then attorney... as to whether claimant orally accepted the settlement, it is undisputed that at the call of the case, claimant’s and carrier’s attorneys appeared before Commissioner Leverette without claimant and announced to her that the case had been settled. The hearing was dispensed with without any approval or disapproval of the settlement by Commissioner Leverette.

Subsequently, on September 28,1977,... Spitz called claimant to his office for the purpose of executing the closing papers for the settlement agreement. However, claimant rejected the settlement and refused to execute the written settlement agreement.... Spitz thereafter notified the attorney for the carrier and Commissioner Leverette that he was withdrawing as attorney for claimant after which claimant retained the services of his present attorney. A hearing was held on February 22, 1978, again before Commissioner Leverette, [after] which hearing no decision was rendered. In an order dated December 7, 1978, Commissioner Reid, upon review of the testimony regarding the settlement, found as a matter of fact that claimant’s original attorney had the authority both to enter into the settlement and to announce it to the Hearing Commissioner and concluded as a matter of law that the settlement was legally binding on claimant. The Full Commission, on April 30,1979, affirmed the Order of Commissioner Reid by a 3-3 decision.

The issue presented by the appeal is whether the claimant could unilaterally repudiate an offer of settlement that had been accepted by his counsel and/or claimant prior to approval by the South Carolina Industrial Commission. S. C. Code Ann. § 42-1-310 (1976) makes it clear that matters involving compensation claims of employees are governed exclusively by the [worker’s] compensation act. Thus, the issue *268 must be determined in light of the requirements and policies of [worker’s] compensation law in particular, rather [than]... contract law in general.

S. C. Code Ann. § 42-9-390 (1976) provides that:

[n]othing contained in this chapter shall be construed so as to prevent settlements made by and between an employee and employer so long as the amount of compensation and the time and manner of payment are in accordance with the provisions of this Title. A copy of any such settlement shall be filed by the employer with and approved by the Commission. (Emphasis added.)

Although voluntary settlements between the employer or its carrier and the claimant are encouraged under [worker’s] compensation law, § 42-9-390 specifically requires approval by the Commission of such settlements. The section does not, however, expressly answer the question of whether a settlement duly entered into is binding prior to Commission approval; moreover, ... no South Carolina case ... directly answers this question. In Singleton v. Young Lumber Co., 236 S. C. 454,114 S. E. (2d) 837 (1960), however, the Supreme Court indicated that the policies supporting the requirement of approval also support the result that settlement agreements are not binding until they have been approved.

In Singleton, [the] employee, employer, and employer’s carrier had entered into an agreement for compensation, which subsequently was approved by the Commission. Sometime later, without seeking the approval of the Commission, the carrier stopped making the weekly payments to which it had agreed. In reaching the conclusion that the employer was bound by the agreement unless and until the Commission determined that the employer had the right to stop making payments, the court reviewed the policies justifying the requirement of Commission approval. The Court, quoting a Rhode Island case, Carpenter v. Globe Indem. Co., 65 R.1.194, 14 A. (2d) 235 (1940), isolated two justifications for the approval requirement: “ ‘to make sure that such agreements entered into in pais would only be of... binding force, but also they would not be detrimental to the rights of the injured workman____’ ” [114 S. E. (2d) at 84.] Thus, the requirement of approval injects two procedural safeguards — first, that the interests of the claimant would be considered by an objective *269 official, and second, that the status of the agreement would be elevated to that of a judicial decree, for enforcement purposes. It is the first of these two safeguards that bears directly on this case. If one purpose of the approval requirement is to ensure that the settlement agreement equitably protects the interests of the injured employee, then how could those interests be protected if the settlement agreement is held binding prior to its approval? This question is expressly answered in Carpenter, the Rhode Island case quoted at length in Singleton:

Until it has received the express approval of the administrative officer, who is charged with the enforcement of the [worker’s] compensation act, and who is vested with a substantial portion of judicial power in the disposition of cases arising under it, the agreement is totally lacking in contractual force even though the parties thereto have done all that would be necessary to constitute a binding contract between them under the law of contracts.

[14 A. (2d) at 239.] Although this particular language is not quoted in the Singleton opinion, the following dictum indicates that the South Carolina Supreme Court agreed with the position of the Rhode Island Supreme Court.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shelia Hutchins v. Security Group, Inc.
Court of Appeals of South Carolina, 2023
Ex Parte: Robert Horn
Court of Appeals of South Carolina, 2022
Haley v. Tire Kingdom
Court of Appeals of South Carolina, 2013
South Carolina Public Interest Foundation v. Greenville County
737 S.E.2d 502 (Court of Appeals of South Carolina, 2012)
Caldwell v. K-Mart Corp.
410 S.E.2d 21 (Court of Appeals of South Carolina, 1991)
Beach v. Hudson
380 S.E.2d 869 (Court of Appeals of South Carolina, 1989)
Kneece v. Kneece
370 S.E.2d 288 (Court of Appeals of South Carolina, 1988)
Ro-Lo Enterprises v. Hicks Enterprises, Inc.
362 S.E.2d 888 (Court of Appeals of South Carolina, 1987)
Rental Uniform Service of Greenville, South Carolina, Inc. v. K & M Tool & Die, Inc.
357 S.E.2d 722 (Court of Appeals of South Carolina, 1987)
Timms v. Timms
348 S.E.2d 386 (Court of Appeals of South Carolina, 1986)
Roll Form Products, Inc. v. Citizens & Southern National Bank
340 S.E.2d 562 (Court of Appeals of South Carolina, 1986)
McGann v. Mungo
340 S.E.2d 154 (Court of Appeals of South Carolina, 1986)
Roberts v. Dunbar Funeral Home
339 S.E.2d 517 (Court of Appeals of South Carolina, 1986)
Tri-Continental Leasing Corp. v. Stevens, Stevens & Thomas, P.A.
338 S.E.2d 343 (Court of Appeals of South Carolina, 1985)
Carolina Attractions, Inc. v. Courtney
337 S.E.2d 244 (Court of Appeals of South Carolina, 1985)
Timms Ex Rel. Estate of Timms v. Timms
333 S.E.2d 74 (Court of Appeals of South Carolina, 1985)
Cartee v. Lesley
333 S.E.2d 341 (Court of Appeals of South Carolina, 1985)
Southern Region Industrial Realty, Inc. v. Timmerman
328 S.E.2d 128 (Court of Appeals of South Carolina, 1985)
Grego v. South Carolina National Bank
324 S.E.2d 94 (Court of Appeals of South Carolina, 1984)
Davis v. Piedmont Engineers, Architects & Planners, P.A.
324 S.E.2d 325 (Court of Appeals of South Carolina, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
312 S.E.2d 565, 280 S.C. 265, 1984 S.C. App. LEXIS 381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mackey-v-kerr-mcgee-chemical-co-scctapp-1984.