Sweep v. Hanson Silo Co.

391 N.W.2d 817, 1986 Minn. LEXIS 848
CourtSupreme Court of Minnesota
DecidedAugust 8, 1986
DocketNo. C2-86-286
StatusPublished
Cited by1 cases

This text of 391 N.W.2d 817 (Sweep v. Hanson Silo Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sweep v. Hanson Silo Co., 391 N.W.2d 817, 1986 Minn. LEXIS 848 (Mich. 1986).

Opinion

COYNE, Justice.

Relators, employer and insurer, seek review of an order of the Workers’ Compensation Court of Appeals disapproving a proposed settlement filed by the parties during the pendency of relators’ appeal from a compensation judge’s denial of their petition to discontinue payment of temporary total disability benefits. We affirm.

Relators’ chief contention is that the WCCA was required by Minn.Stat. § 176.-521, subds. 2 and 2a (1984), to accept the proposed settlement. These provisions are applicable when parties to the settlement are represented by counsel, as they were in this case. Section 176.521, subd. 2, provides:

Subd. 2. Settlements shall be approved only if the terms conform with this chapter.
The division, a compensation judge, the workers’ compensation court of appeals, and the district court shall exercise dis[819]*819cretion in approving or disapproving a proposed settlement.
The parties to the agreement of settlement have the burden of proving that the settlement is reasonable, fair, and in conformity with this chapter. A settlement agreement where both the employee or the employee’s dependent and the employer or insurer and intervenors in the matter are represented by an attorney shall be conclusively presumed to be reasonable, fair, and in conformity with this chapter except when the settlement purports to be a full, final, and complete settlement of an employee’s right to medical compensation under this chapter or rehabilitation under section 176.-102. A settlement which purports to do so must be approved by the division, a compensation judge, or workers’ compensation court of appeals.
The conclusive presumption in this subdivision applies to a settlement agreement entered into on or after January 15, 1982, whether the injury to which the settlement applies occurred prior to or on or after January 15, 1982.

(Emphasis added). Section 176.521, subd. 2a, provides:

Subd. 2a. When a settled case is not subject to approval, upon receipt of the stipulation for settlement, a compensation judge, a settlement judge, or the workers’ compensation court of appeals shall immediately sign the award and file it with the commissioner. Payment pursuant to the award shall be made within 14 days after it is filed with the commissioner. The commissioner may correct mathematical or clerical errors at any time.

These provisions express the legislative judgment that parties represented by counsel may settle compensation claims and that the Workers’ Compensation Division, compensation judges, and WCCA shall not review the settlement unless it “purports to be a full, final, and complete settlement” of the employee’s right to medical compensation or rehabilitation. Relators claim that the settlement presented to the WCCA did not foreclose employee’s rights to medical compensation or rehabilitation and, consequently, that it was not subject to approval by that Tribunal. However, the proposed settlement discloses that the parties agreed on these matters:

1. That the Insurer shall pay and the Employee shall accept, in one lump sum, without interest deduction, the sum of $12,500.00 in full, final and complete settlement of any and all claims the Employee may have against the Employer and its Insurer herein for temporary total disability, temporary partial disability, permanent total disability, permanent partial disability, rehabilitation, retraining, impairment compensation, economic recovery compensation and any and all other benefits, increases or additions thereto payable pursuant to the Minnesota Workers’ Compensation Act, except as otherwise provided herein.1
* * * ⅜! ⅜ *
4. That the Employee understands and agrees that he is fully, finally and completely compromising any and all claims he now has or may have in the future against the Employer and its Insurer herein for benefits for temporary total disability, temporary partial disability, permanent total disability, permanent partial disability, rehabilitation, retraining, impairment compensation, economic recovery compensation, medical benefits to date and any other benefits or increases or additions thereto provided under the Workers’ Compensation Laws of the state of Minnesota. It is understood and agreed to by all parties herein that said Employer and its Insurer shall only remain liable for and shall make payment on any and all medical expenses reasonably related and necessary to cure and relieve the effects of the Employee’s injury of June 18, 1984. It is understood [820]*820and agreed to by all parties hereto that, after payment is made pursuant to paragraph 8 hereof, the Employer and its Insurer shall no longer be resposible [sic] for payment of any chiropractic expenses incurred by the Employee at any time for any reason. It is further understood and agreed to by all parties hereto the Insurer shall pay for up to $1,500.00 in rehabilitation expenses incurred by the Employee as a result of his injury of June 18, 1984. The Employer and its Insurer shall not be responsible for any expenses for rehabilitation benefits in excess of $1,500.00.

(Emphasis added).

Because the parties agreed that relators were to be liable for future medical expenses other than chiropractic expense and for rehabilitation expenses up to $1,500, the relators claim that the proposed settlement was not a full, final, and complete settlement of employee’s rights to medical expenses and rehabilitation. We reject that claim. Clearly, the proposed settlement was intended to fully, completely, and finally bar employee’s right to have rela-tors pay for chiropractic treatment — certainly a part of his right to medical compensation — and also to place a monetary restriction on his right to rehabilitation. With those limitations the settlement was intended to fully, finally, and completely bar claims based on those rights. Thus, the WCCA was required to review it in order to determine whether it was fair, reasonable, and in conformity with the Workers’ Compensation Act.2

2. Relators contend also that, even if the proposed settlement was subject to approval by the WCCA, that court erred in determining that it was not in conformity with the Workers’ Compensation Act. This claim requires examination of the opinions accompanying the order.

Two members of the WCCA based their disapproval of the settlement in part on their view that Minn.Stat. § 176.021, subd. 3 (1984) and the overall policy of the Workers’ Compensation Act to impose the cost of workplace injuries upon industry prohibits parties from entering a settlement barring future claims for disability resulting from known and admitted work injuries. We do not believe that either the statute or the policy cited by these members of the WCCA supports their conclusion.

In 1974 the legislature amended Minn.Stat. § 176.021, subd. 3 (Supp.1973) by adding the following language:

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Bluebook (online)
391 N.W.2d 817, 1986 Minn. LEXIS 848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sweep-v-hanson-silo-co-minn-1986.