TWCA reviews whether an employer could receive reimbursement of payments made prior to the execution of a compromise & release agreement

LIBERTY MUTUAL INSURANCE CO. ET AL. v. RICHARD WARNOCK ET AL. (TWCA July 14, 2011)



This workers' compensation appeal has been referred to the Special Workers' Compensation Appeals Panel for a hearing and a report of findings of fact and conclusions of law. The employee suffered an injury which the employer denied was in the course of employment. The employee filed a request for assistance with the Tennessee Department of Labor and Workforce Development. The Department ordered the employer to pay temporary disability benefits and medical expenses for the employee's injury pursuant to Tennessee Code Annotated section 50-6-238(a)(2)(3).

Subsequently the employer, its workers' compensation carrier and the employee entered into a compromise and release agreement in Pennsylvania pursuant to which the employee was paid $130,000. The employer filed this action against the employee and the Department of Labor requesting reimbursement of payments made pursuant to the Department's order, as permitted by section 50-6-238(b). The trial court granted the Department's motion for summary judgment and dismissed the action. We affirm the judgment.


Opinion available at:

http://www.tba2.org/tba_files/TSC_WCP/2011/libertymutual_071411.pdf