Compromise Settlement

A workers' compensation case can be settled in three ways: stipulation, Compromise and Release or through litigation. Only the stipulation and the Compromise and Release offer are considered a compromise settlement.

For instance, if you agree to compromise through stipulation then you and your employer or the insurance company will agree to your level of permanent disability based upon the medical reports available. The insurance company will pay you bi-weekly disability payments and provide future medical treatment for your injured body parts. This agreement is a compromise by both parties and is entered into voluntarily by both sides rather than being imposed on the parties by a judge.

Another option may be a Compromise and Release. Under this comprise settlement method the insurance company and your attorney can negotiate a settlement offer based on your level of permanent disability as per the medical reports and an estimated value of future medical care.

The settlement payment is made in one lump sum payment and the case is closed, which means you will not be entitled to any additional medical care for your work injuries. Compromise and Release settlements generally must be approved by a judge or the Workers' Compensation Appeal Board.

When do I refuse a compromise settlement offer?

If you have been injured in the normal course of your employment but the insurance company refuses to offer a reasonable settlement offer you may be forced to refuse all compromise settlement offers and go to trial.

If the work comp case goes to trial the judge will hear the evidence submitted by both the plaintiff and defendant and review all of the evidence provided within the medical report. The judge will find for the defendant or the plaintiff.