§ 72-404 — SETTLEMENT AGREEMENTS — LUMP SUM PAYMENTS

(1) Pursuant to the provisions of this section, parties may compromise and settle claims by way of agreements for lump sum payments, future payments, accrued income benefits, future income benefits, medical cost reimbursements, and other benefits payable under Idaho’s worker’s compensation laws.
(2) Except as provided in subsection (3) of this section, commission approval is not required for parties to enter into enforceable compromise or settlement agreements. However, either party may request a review and approval of a proposed compromise or settlement agreement by the commission.
(3) In any case where one (1) or both parties are not represented by an attorney or in any case where a party is a minor child or legally incompetent person, the commission shall review compromise or settlement agreements. The commission shall approve such an agreement if it determines that approval is in the best interests of the parties. If the commission declines to approve a compromise or settlement agreement, it shall issue a written decision, including factual findings, conclusions of law, and an order declining to approve the agreement. Such decision and order shall be immediately appealable to the Idaho supreme court on grounds of abuse of discretion.
(4) If the commission requires a hearing as part of the settlement review and approval process pursuant to subsection (3) of this section, the commission shall, prior to such hearing, provide each party with written notice of the commission’s specific issues to be addressed at the settlement review hearing.
(5) All compromise and settlement agreements shall be filed with the commission for recordkeeping purposes and for purposes of assessment under section 72-327, Idaho Code. A settlement agreement shall be effective on the date it is filed with the commission and shall for all purposes constitute an adjudication of the claims resolved in the settlement agreement. All agreements filed with the commission pursuant to this section shall include, at a minimum, a detailed ledger of all benefits paid or disputed and all terms agreed upon by the parties. A copy of the settlement agreement executed by the parties shall be filed with the commission. When the worker is represented by an attorney, the worker’s attorney shall file an attorney charging lien with the commission. The filing of an attorney charging lien shall be deemed to satisfy the requirements of section 72-803, Idaho Code, with respect to approval for claims of attorney’s fees, provided that the fees assessed comply with the requirements of Idaho Code and the rules of the commission.
(6) The commission shall, within seven (7) days after the filing of a settlement agreement, issue a notice of dismissal with prejudice, excepting future claims that may include medical or other benefits as agreed upon by the parties.

Legislative History

[72-404, added 2022, ch. 174, sec. 2, p. 569.]