Court Opinion

ID: 9598728
Source: CourtListenerOpinion
Date Created: 2023-08-22 01:11:14.953081+00
Date Added: 2024-06-11T13:36:42.819863
License: Public Domain

Justice Meyer
dissenting.
I agree with the majority with regard to the Court of Appeals’ assertion that “there is no requirement — either in the Workers’ Compensation Act, The Rules of the Industrial Commission, or in case law — that the Commission, in approving a Form 26 agreement, determine that the agreement is fair.” Vernon v. Steven L. Mabe Builders, 110 N.C. App. 552, 559, 430 S.E.2d 676, 680 (1993). Implicit in the Workers’ Compensation Act is the requirement of fairness to both employer and employee. In addition, as the majority has noted, our prior decisions have indicated that the Commission does have an obligation to ensure the fairness of voluntary settlements.
*436I wish to point out, however, that in the limited context of a Form 26 settlement agreement, and presumably a Form 21 settlement agreement, the Commission fulfills its requirement to determine the fairness of the agreement if, on the face of the document, the settlement affords compensation in the manner prescribed by N.C.G.S. § 97-31 or 97-29 and otherwise complies with pertinent provisions of the Act. In making such a determination, the Commission is free to establish its own rules for the review of such form settlement agreements, which it has done. See Workers’ Compensation Rules of the N.C. Industrial Commission, Rule 501, Annotated Rules of North Carolina (Michie 1994) [hereinafter “Workers’ Compensation Rules”]. In essence, the Commission thereby properly abides by a legislative determination of what is a fair settlement in compensation for the injuries sustained by the employee.
Further, despite the fact that the Commission has adopted differing rules for the approval of form settlement agreements and compromise settlement agreements, I do not believe that the Commission views itself as without responsibility to ensure the fairness of all voluntary settlement agreements. It is my view that if the Commission adopts and follows rules designed to ensure that voluntary settlement agreements are in accordance with the provisions of the Workers’ Compensation Act, it has fulfilled its obligation to ensure a fair settlement.
N.C.G.S. § 97-17 specifically states that “[njothing herein contained shall be construed so as to prevent settlements made by and between the employee and employer so long as the amount of compensation and the time and manner of payment are in accordance with the provisions of this Article.” N.C.G.S. § 97-17 (1991) (emphasis added). Commission Rule 501(4) states that “[agreements in proper form and conforming to the provisions of the Act will be approved by the Industrial Commission.” Workers’ Compensation Rules, Rule 501(4).
Form 26 agreements are designed to secure benefits calculated by the legislature to be fair and just compensation for the injury sustained by the employee. These benefits are mainly enumerated in N.C.G.S. § 97-31, entitled “Schedule of Injuries; Rate and Period of Compensation,” and in N.C.G.S. § 97-29, entitled “Compensation Rates for Total Disability.” Presumably, when the General Assembly determined the specific rates of compensation that would be forthcoming in the event of an enumerated injury, it made the deter*437mination that such compensation was fair. Thus, if the Commission abides by a rule that requires a voluntary settlement to conform to the provisions of the Act, it has met its obligation to ensure the fairness of the settlement. In the present case, the record indicates that the claims supervisor properly engaged in such a determination, although apparently unaware of our decision in Whitley v. Columbia Lumber Mfg. Co., 318 N.C. 89, 348 S.E.2d 336 (1986).
In its order, the Commission made the following findings of fact:
When the Form 26 Agreement was submitted to the Commission for approval, Sandra McLamb of the claims department reviewed it to ascertain whether it was supported by the medical information in the file. The report by Dr. Kelly confirmed the permanent partial disability rating, and the payment information was correct, so she approved the agreement. Although she was not aware of changes in the law effected by the Supreme Court in Whitley v. Columbia Lumber Manufacturing Company, 318 N.C. 89[] (1986), it was the Industrial Commission’s policy to not substitute its judgment for the parties or act as an advocate for either side as long as the information in the file supported the settlement agreement. Plaintiff was free to make an election of remedies, and the Commission would approve the resulting settlement as long as there was supporting documentation and the settlement complied with the law.
It is my view that the procedures followed by the Commission in this case were sufficient to meet the Commission’s obligation to ensure a fair settlement.
The fact that the employee in this case may have been eligible for a more favorable settlement does not make the settlement he chose unfair. Nor does it constitute an agency decision rendered under a misapprehension of existing law. Even if the claims supervisor had been aware of our decision in Whitley, as long as the remedy elected by the claimant is consistent with the schedule of benefits, period of payment, and other provisions of the Act, approval of the agreement does not constitute a misapprehension of existing law.
It is likely that, due to the ongoing interpretation of the Workers’ Compensation Act, similar situations will arise in the future. It is unrealistic to expect that Commission employees whose job it *438is to approve such settlements can stay abreast of all developments in workers’ compensation law as soon as these developments occur. It is equally unrealistic to expect the few Commission employees whose job it is to approve form settlements to become advocates and render advice as to fairness in the many thousands of such form settlements that are submitted each year. As a result of this decision, it may be that, in order to assure compliance with the majority’s requirement, the Commission will find it necessary to require that claimants be represented by counsel before they approve form settlement agreements. This, in my view, conflicts with the policies and intent of the Workers’ Compensation Act.