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Access over workers' compensation decisions, including En Banc, Significant Panel Decisions, and writ-denied cases.

Case No. MISSING
Regular Panel Decision

Rapid Settlements Ltd. v. SSC Settlements, LLC

This case involves an appeal and mandamus proceeding filed by Rapid Settlements, Ltd. and Rapid Management Corporation (Rapid) against SSC Settlements, L.L.C. and Stone Street Capital, Inc. (SSC). Rapid challenged a final summary judgment related to the transfer of structured settlement payments from William Prante. Rapid sought to stay litigation pending arbitration, arguing the dispute with SSC fell under an arbitration clause in their agreement with Prante, which also included a right of first refusal and a security interest. The appellate court denied the mandamus petition, vacated the trial court's denial of Rapid's motion to stay, and reversed parts of the summary judgment concerning Rapid's security interest and right of first refusal. The court affirmed the trial court's award of attorney's fees to SSC and its injunction preventing Rapid from compelling SSC to arbitrate.

Arbitration AgreementMandamus ProceedingSummary JudgmentDeclaratory JudgmentStructured SettlementRight of First RefusalSecurity InterestEquitable EstoppelDirect Benefits EstoppelContract Law
References
42
Case No. MISSING
Regular Panel Decision

Texas Employers' Insurance Ass'n v. Remy

George Remy, Jr. (Remy), an injured worker, entered into a worker’s compensation compromise settlement agreement with Texas Employers’ Insurance Association (TEIA). The agreement was based on representations made by orthopedic surgeon Dr. Robert Pace, Jr., who was later found to be an agent of TEIA. Remy's condition deteriorated rapidly after the settlement, and it was discovered that Dr. Pace had misdiagnosed his severe spinal cord injury, which led to quadriplegia. Remy sought to set aside the settlement, and a jury found in his favor, but the trial court disregarded the jury's finding that Dr. Pace was TEIA's agent. The appellate court reversed the trial court's decision regarding agency, affirming the judgment for rescission based on constructive fraud.

Constructive FraudMutual MistakeWorker's Compensation SettlementRescissionAgency RelationshipMedical MisdiagnosisSpinal Cord InjuryQuadriplegiaAppellate ReviewJury Findings
References
9
Case No. MISSING
Regular Panel Decision
Mar 19, 2002

Claim of Estate of Lutz v. Lakeside Beikirk Nursing Home

The case involves an appeal by a claimant from two Workers' Compensation Board decisions concerning a waiver agreement. The decedent, Beverly Lutz, her employer, and carrier had a proposed settlement agreement that was filed but not yet approved when she died. The Board, through Commissioner Tremiti, refused to honor the agreement after the carrier and Special Funds withdrew their consent. Although an approval notice was mistakenly issued, the Board later corrected it, ruling the agreement was never approved. The appellate court affirmed the Board's decision, holding that the Board had continuing jurisdiction to correct its error and that the withdrawal of consent by the carrier and Special Funds justified the disapproval of the agreement.

Workers' CompensationSettlement AgreementWaiver AgreementDeath BenefitsBoard ReviewJurisdictionConsent WithdrawalStatutory InterpretationRegulation ValidityAppellate Review
References
11
Case No. MISSING
Regular Panel Decision

Symetra Life Insurance v. Rapid Settlements, Ltd.

This case involves the National Association of Settlement Purchasers (NASP) seeking a permanent injunction against Rapid Settlements, Ltd., a factoring company. NASP alleged that Rapid Settlements improperly uses arbitration and enforces rights of first refusal and security interests in structured settlement payment rights without state-court approval, thereby circumventing state Structured Settlement Protection Acts (SSPAs). The court found that Rapid Settlements' practices illegally circumvent the SSPAs, cloud title to annuitants' payment rights, raise transaction costs for NASP members, and place them at a competitive disadvantage. The court rejected Rapid Settlements' defenses, including preemption by the Federal Arbitration Act and an 'unclean hands' argument against NASP. The court granted NASP's application, permanently enjoining Rapid Settlements from using arbitration or enforcing unapproved rights of first refusal and security interests to effectuate transfers of structured settlement payment rights.

Structured SettlementsFactoring CompaniesAnnuity PaymentsArbitrationInjunctionState LawFederal LawStructured Settlement Protection ActsRights of First RefusalSecurity Interests
References
33
Case No. MISSING
Regular Panel Decision

In re Settlement Capital Corp.

Settlement Capital Corporation (SCC) sought court approval, under New York's Structured Settlement Protection Act (SSPA), to acquire $125,000 of a $225,000 annuity payment due to Richard C. Ballos on October 1, 2010. Ballos, a totally disabled father of two, agreed to transfer these rights for a net advance of $36,500, reflecting a 15.591% annual discount rate. The court, presided over by Justice Patricia E. Satterfield, denied the petition after a hearing on April 23, 2003. The decision hinged on a two-pronged test: whether the transfer was in Ballos's 'best interest' and if the transaction terms were 'fair and reasonable.' The court found that Ballos did not demonstrate 'true hardship' given his other income sources and previous transfer of structured settlement payments, concluding it was not in his or his dependents' best interest. Furthermore, the court deemed the 15.591% discount rate, resulting in Ballos receiving only 29% of the transferred amount, unconscionable and not 'fair and reasonable.'

Structured SettlementStructured Settlement Protection Act (SSPA)Annuity TransferDiscount RateBest Interest StandardFair and Reasonable StandardPayee ProtectionFinancial HardshipCourt ApprovalGeneral Obligations Law
References
12
Case No. MISSING
Regular Panel Decision

In Re Willis

The debtor, Trennis Earl Willis, filed for Chapter 7 bankruptcy. An asset in his estate is a personal injury claim, for which he had a contingency fee contract with attorney Frank L. Supercinski. Supercinski sought approval for his fees ($20,000 plus expenses) from a $50,000 settlement of the personal injury claim and approval of a disbursement scheme. Both the Debtor and the Chapter 7 Trustee objected, arguing the contingency fee contract was executory and rejected by the estate. The Court, presided over by Judge Donald R. Sharp, found the contingency fee agreement to be executory and deemed rejected as not assumed by the Trustee. However, applying the common fund doctrine, the Court acknowledged Supercinski's entitlement to fees from the settlement proceeds with priority. Despite this, all of Supercinski's motions (for fees, settlement approval, and relief from stay) were denied due to procedural flaws, such as the settlement not being finalized or approved, and the lack of a settlement agreement copy. The Court clarified that the settlement check is property of the Debtor's estate and must be administered under bankruptcy rules, instructing Supercinski to file a proper application once the settlement is finalized and approved.

Chapter 7 BankruptcyContingency Fee AgreementAttorney's FeesExecutory ContractAutomatic Stay ReliefCommon Fund DoctrineQuantum MeruitTexas LawPersonal Injury SettlementBankruptcy Estate
References
29
Case No. MISSING
Regular Panel Decision

Wallace v. Aetna Life & Casualty Co.

This case concerns an appeal regarding a petition to modify a worker’s compensation lump sum settlement agreement. The appellant sustained a back injury in 1978, settling in 1980 for a 20% permanent partial disability based on an initial diagnosis of lumbosacral strain. Years later, a ruptured disc was diagnosed, prompting the appellant to file a petition in 1982 to modify the settlement, alleging mutual mistake of fact. The appellee moved to dismiss, arguing the petition was time-barred under T.R.C.P. 60.02, as it was filed more than one year after the final judgment. The court affirmed the dismissal, holding that claims based on mistake under T.R.C.P. 60.02(1) must be brought within one year, and subsection (5) cannot be used to circumvent this time limit.

Worker's CompensationLump Sum SettlementPetition to ModifyMutual Mistake of FactTimelinessT.R.C.P. 60.02Permanent Partial DisabilityRuptured DiscBack InjuryAffirmed
References
2
Case No. MISSING
Regular Panel Decision

Hoesen v. Owens-Illinois Glass Co.

Judge Mikoll, in a dissenting opinion, advocates for the affirmation of Special Term's decision concerning a settlement reached in open court. The judge emphasizes that agreements made in open court, with the involvement of counsel and the court, should remain undisturbed unless extraordinary reasons necessitate otherwise. The crux of the dispute lies in interpreting a prior settlement order from January 29, 1976, which mandates Lumbermens Mutual to reimburse plaintiff Kenneth Van Hoesen for legal fees based on the 'full value of the Workmen’s Compensation claim, including compensation payments and medical payments.' Judge Mikoll argues that had the parties intended to exclude the $2,540.80 waived lien from the total claim, they should have explicitly stated this in simple language. Consequently, the dissenting judge concludes that the provisions of Workers’ Compensation Law § 29(1) should not be applied to alter the established terms of this agreement, thereby supporting the original interpretation in favor of Van Hoesen.

Settlement AgreementCounsel FeesWorkers' Compensation LawLien WaiverOpen Court AgreementDissenting OpinionStatutory InterpretationReimbursementLegal FeesCourt Order Interpretation
References
2
Case No. MISSING
Regular Panel Decision

Commercial Union Insurance Co. v. Martinez

Martinez, injured at work, entered a workers' compensation settlement agreement with Commercial Union, which included an escrow provision for $8,000 if he required 'surgery to the back'. After undergoing surgery for a latoma, Martinez claimed the $8,000. Commercial Union denied the claim, arguing the surgery was not the intended type, and sought to introduce extrinsic evidence to interpret 'surgery to the back'. The trial court disallowed the extrinsic evidence and ruled in favor of Martinez, awarding him the $8,000 plus additional fees. The appellate court affirmed, holding that the term 'surgery to the back' was unambiguous and the extrinsic evidence was properly excluded.

Contract InterpretationAmbiguityExtrinsic EvidenceWorkers' CompensationSettlement AgreementEscrow ProvisionSurgery DefinitionMutual MistakeTrade CustomAppellate Review
References
14
Case No. 14-07-00880-CV
Regular Panel Decision
Apr 21, 2009

Symetra National Life Insurance Company and Symetra Life Insurance Company v. Rapid Settlements, LTD

Symetra National Life Insurance Co. and Symetra Life Insurance Co. appealed a trial court's confirmation of an arbitration award that directed them to make structured settlement payments to Rapid Settlements, Ltd., instead of the original payee, Paul Patterson. Symetra argued that the transfer lacked the required court approval under the Texas Structured Settlement Protection Act (SSPA) and violated public policy, while Rapid Settlements asserted it was not a 'transfer' under SSPA, federal law preempted SSPA, and Symetra lacked standing. The court rejected Rapid's arguments, emphasizing that the SSPA mandates court preapproval for structured settlement payment transfers to protect payees and their dependents. Consequently, the court held that the arbitration award violated Texas public policy by effectuating an unapproved transfer. The trial court's judgment was reversed, and the arbitration award was vacated.

Structured Settlement Protection Act (SSPA)Arbitration AwardPublic PolicyFederal Arbitration Act (FAA)PreemptionStandingGarnishmentTransfer of PaymentsAnnuity IssuerTexas Law
References
20
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