Settlement

1. Compromise and Release (C&R)

2. Stipulations with Request for Award (Stip)

Before you begin reading this section read the Permanent Disability section. There are two different types of settlements in workers’ compensation cases: (1) Compromise and Release (C & R); (2) Stipulations with Request for Award (Stip).

It is critical that you understand the differences between these two types of settlements. It is also important that you understand that you may not have a choice to settle your case by way of C & R. If you continue to work for the same employer, where you were injured, you may not be able to choose a settlement by way of C & R. This is because this settlement option settles your right to have the insurance company pay for your future medical care. However, since you continue to work for the same employer, the employer does not benefit by this release.

There is nothing in the law that forces the insurance company to settle with you by way of C & R. There is also nothing in the law that establishes the amount you must be paid to settle your future medical rights, so long as the amount added to your permanent disability to settle your future medical rights passes muster with the judge that will review your settlement. The judge does not have the power to force the insurance company to pay you any particular amount to settle your future medical rights. The only thing the judge can do if he thinks the amount is not enough is to refuse to approve the C & R.

1. Stipulations with Request for Award

A Stip is an agreement between you and the insurance company to settle the permanent disability from your injury. The critical highlights of this type of settlement are: (1) the insurance company continues to be responsible for your future medical care as long as it is required and indicated by the doctor, and; also (2) you will not receive a lump sum settlement. Your settlement will be paid to you every two weeks until the permanent disability is paid in full. The amount at which your payments will be made every two weeks varies depending upon the date of injury and percentage of disability. In addition, when you settle by way of Stip, if your condition gets worse you have the right to request additional workers compensation benefits provided that you file a Petition for New and Further Disability within five (5) years after the date of your injury. In addition, if you settle by way of Stip, and your condition worsens over time, you have the right to request additional workers compensation benefits provided that you file a Petition for New and Further Disability within five (5) years after the date of your injury.

Clearly, settlement by way of Stip is the safest way to resolve your claim if you are concerned about future medical expenses. There is no guarantee that you will have health insurance to cover your injury in the future. Many private insurance policies have pre-existing condition clauses that would prevent them from paying for your injury. This benefit you must weigh against the fact that you will not receive your settlement in a lump sum. In many cases, although it would be best for my client’s to settle by Stip, they choose to settle by C & R.

1.  Compromise and Release:

This is the second type of settlement. If you choose to settle your case by way of C & R the settlement will be paid to you as one lump sum. In addition this settlement varies from a Stip in that you are solely responsible for your future medical care.

This type of settlement should be for more money than a Stip. This is because in addition to permanent disability, the settlement relieves the insurance company of its obligation to pay for your future medical care as well as other benefits you are entitled to under the law. Do not accept the insurance company’s measly offers to settle by C & R. Make them pay a reasonable amount above the value of a Stip.

It is important that you understand that the Workers’ Compensation Appeals Board does not have the jurisdiction to order the insurance company to pay you any certain amount of money to settle your future medical care and other benefits. Therefore, if you and the insurance company cannot agree to a settlement by way of C & R the court cannot order this type of settlement. Your only alternative would be to settle by way of Stip.

The problem for you in trying to determine whether or not a settlement offer is reasonable is that you are not knowledgeable about the cost of potential future medical care. You may have no idea what medical care you will require in the future and you do not know how much most insurance companies are willing to pay to settle the other benefits that are usually settled in a C & R. It is important that you contact an attorney to discuss your rights. An attorney who specializes in workers compensation will be able to determine whether the settlement offer that is being made to you is reasonable. Also, a workers compensation attorney can help you think about some of the issues you may not have considered. For instance, you cannot necessarily trust what the insurance company tells you the permanent disability in your case is worth. It is not unusual for the insurance company to incorrectly rate your report resulting in a huge windfall to them at your expense.

Even if you have waited until this point in your case, you would be well served by speaking to an experienced attorney about the settlement of your case. I welcome you to complete the Free Case Review section of this website so I can review your case.

All material © 2000 The Law Office Of Jeffrey Segal

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