England v. Amerigas Propane and Indemnity Insurance Company of North America

Summary

The Colorado Supreme Court held that a mandatory workers’ compensation settlement form could not waive or limit an injured employee’s statutory right to reopen a settlement based on mutual mistake of material fact. The court interpreted the form’s unknown-injuries provision consistently with the statute and concluded that it applied only to injuries developing after settlement, while the mutual-mistake provision covered an unknown injury existing when the settlement was executed. The court reversed the court of appeals and remanded for further proceedings.

Holdings

1. The mandatory settlement form cannot waive or limit an injured employee's statutory right under section 8-43-204(1) to reopen a workers' compensation settlement on the ground of mutual mistake of material fact. The form must be interpreted consistently with the statute.
2. The unknown-injuries provision applies only to injuries that develop after the settlement agreement is signed and approved, while the mutual-mistake provision applies to injuries that are unknown but already exist when the agreement is signed and approved.
3. England established a mutual mistake of material fact because both parties were unaware of the scapular fracture, the fracture existed when the settlement was executed, and England would not have settled had he known of it. He therefore retained the right to reopen his claim.

Questions Presented

1. Whether the mandatory workers' compensation settlement form's release of claims for unknown injuries waived or limited an injured employee's statutory right under section 8-43-204(1), C.R.S., to reopen a settlement based on a mutual mistake of material fact.
2. Whether the parties' mutual ignorance of England's existing scapular fracture constituted a mutual mistake of material fact permitting reopening of the settlement.

Disposition

reversed_and_remanded