The Commonwealth Court recently published a case addressing the finality of settlements under Pennsylvania law, making the case a precedential opinion.
In Borrelli v. Interstate Gas Supply, Inc. (WCAB), Claimant sustained work injuries due to a slip and fall while working as a door-to-doors salesman. The NCP recognized the injury as “multiple body parts,” including a soft tissue injury to the head. The Employer filed a Termination Petition alleging full recovery. Claimant followed by filing Claim and Review Petitions seeking clarification of the injuries. Those Review and Claim Petitions were later amended to Petitions for Approval of Compromise and Release.
During the course of litigation, the parties reached a settlement for $90,000. Paragraph 4 of the compromise and release agreement outlined that the parties agreed that the injury was “in the nature of a soft tissue head injury” and indicated that the settlement resolved “any and all claims/issues arising out of” the March 2019 injury. As part of the C&R, the parties agreed to go to decision on the Termination Petition only. Claimant offered no medical evidence in opposition to the Termination Petition, and theTermination Petition was granted.
Claimant then appealed the Decision granting the TerminationPetition and denying fees and costs. He alleged that he should be entitled to expand the scope of the injuries while defending the Termination Petition and argued that his left knee remained symptomatic. He further alleged on appeal that he was entitled to costs and attorneys’ fees.
The Court concluded that the compromise and releaseagreement precluded these claims as the Act provides that parties may settleany and all liability through compromise and release settlements. Claimant had8/9lost his opportunity to relitigate the case based upon the terms of thesettlement. With regard to attorneys’ fees and costs, the Court noted that theClaimant had failed to prevail in the Termination Petition and thus had noright to attorneys’ fees or costs.
This case illustrates the finality of settlements under thePennsylvania Workers’ Compensation Act and the importance of resolving all issues of injury description through the compromise and release agreement.
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