Opinion ID: 1118924
Heading Depth: 3
Heading Rank: 2

Heading: Gray v. Industrial Commission

Text: In Gray, the claimant allegedly suffered a heart attack at work. He submitted a claim for benefits, but his employer's insurance carrier disputed compensability. The claim was eventually settled before the Commission determined compensability. When the parties submitted their settlement agreement to the Commission for approval, the Commission refused to approve or to disapprove the agreement, asserting that it lacked jurisdiction except to determine compensability. 24 Ariz. App. at 500, 539 P.2d at 974. The court of appeals held that A.R.S. § 23-1025 does not preclude settlements before compensability is determined. The court reasoned that settlement of a disputed claim is not a waiver of the employee's right to compensation: It is a contradiction of terms to say that, when a present and existing claim is settled, the claim itself ... is waived. By making such a settlement, it in no sense may be said that the `rights to compensation under the' act were surrendered or waived. To the contrary, such rights were thereby asserted, affirmed, and recognized, not waived. 24 Ariz. App. at 502, 539 P.2d at 976 (quoting Brigham Young University v. Industrial Commission, 74 Utah 349, 361, 279 P. 889, 893 (1929)). The court further held that the Commission had jurisdiction, under A.R.S. § 23-107(A)(3), to review settlements entered into before compensability was established. 24 Ariz. App. at 503, 539 P.2d at 977. The court of appeals' opinion was adopted and approved, per curiam, by this court. 113 Ariz. 296, 552 P.2d 766. Because Gray approved only settlement of workers' compensation claims before compensability is established, it is not necessarily inconsistent with Travelers. Indeed, Gray states, in dicta, that settlement agreements are improper once compensability has been established. 24 Ariz. App. at 501, 539 P.2d at 975. Nevertheless, Gray 's reasoning, stressing the difference between waivers and settlement agreements and the authority of the Commission to review settlement agreements, seems equally applicable to settlements before or after compensability is established.