Receiver for Citizen's National Assurance Co. v. Hatley
Johnny Ray Hatley was injured in a work-related truck accident and settled a third-party claim for $85,000, from which the Receiver for Citizen’s National Assurance Company received $16,000. Hatley then pursued workers' compensation benefits, and a jury found him totally and permanently incapacitated. The trial court awarded Hatley approximately $78,000 in benefits, rejecting the Receiver's argument that the third-party settlement should offset the workers' compensation recovery under former article 8307, section 6a. The Receiver appealed, contending the statutory offset was mandatory and the release had no legal effect or lacked consideration. The appellate court affirmed the trial court's judgment, finding that the release explicitly waived the Receiver's statutory rights and was supported by valid consideration, thereby precluding the application of the offset.