Settlements in Multi-Party Claims

The Board recently confirmed that a claimant who has joined multiple potentially responsible employers in a claim may settle with a single employer.  The claimant filed claims for back injuries occurring on May 21, 2010 and August 18, 2013, with the latter asserted as a cumulative injury claim.  All the employers the claimant worked for between these dates were joined in the proceeding.  At one point, the claimant settled with a single employer, Total Terminals International ("TTI").  The administrative law judge disapproved of the settlement, finding it “'deficient in that it does not include the signatures of all parties,' i.e., all the potentially liable employers."  The Board vacated this order and confirmed that "[a]lthough several potentially liable employers have been joined in the proceeding, . . . any potentially liable employer may opt to settle separately with claimant."  The Board determined that as "the proposed settlement agreement involves only claimant’s claim against TTI, and does not affect the rights or obligations of any other potentially liable employer, claimant and TTI are the only parties who must sign the application in this case."  The Board added, however, that the employer ultimately responsible for the claimant's injury is not entitled to a credit for these settlements.  See Alexander v. Director, OWCP, 297 F.3d 805 (9th Cir. 2002) and New Orleans Stevedores v. Ibos, 317 F.3d 480 (5th Cir. 2003).

Stovall v. Total Terminals International, LLC, BRB Nos. 14-0266 and 14-0266A (2/27/15)