Dailey v. Southern Heel Co.
Joe Thomas Dailey, an employee of Southern Heel Company, suffered a work-related left knee injury in 1983. He had prior work-related injuries, leading to a claim against the Second Injury Fund. A prior settlement between Dailey, Southern Heel, and Wausau Insurance Company was set aside due to the Second Injury Fund not being a party with proper notice as required by Tenn. Code Ann. § 50-6-206. The trial court found the employer liable for 60% permanent partial impairment to Dailey's left leg and the Second Injury Fund liable for the remaining compensation up to the statutory maximum of $54,400, deeming Dailey totally and permanently disabled. The employer appealed the setting aside of the settlement and the liability, arguing for tender of the settlement amount. The Supreme Court affirmed the trial court's awards, finding no legal or equitable basis for the employee to tender the settlement sum, and remanded the case for a determination of expenses incurred by Dailey for a surety bond.