Smith v. Champion Trucking Company, Inc.

Summary

The Supreme Court of Indiana held that an employer's workers' compensation liability for an employee's benefits terminates when the employee settles a claim against a third-party tortfeasor for the same injury without obtaining the employer's consent. The court affirmed dismissal of Jimmie Smith's application for additional workers' compensation benefits after his settlement with the third-party motorist released that motorist from liability.

Holdings

1. Under Indiana's Workers' Compensation Act, an employer's liability for further workers' compensation benefits terminates when an employee who has received workers' compensation benefits settles a claim against a responsible third party for the same injury without first obtaining the employer's consent.
2. The absolute bar does not depend on the third-party settlement exceeding the employee's anticipated workers' compensation benefits.
3. Once the employee settles and releases the third party without the employer's consent, the employer cannot continue pursuing the third party for reimbursement; its remedy for workers' compensation payments is through the employee, and the employee's claim for further benefits is barred.

Questions Presented

1. Whether Indiana Code section 22-3-2-13 bars an employee from receiving further workers' compensation benefits when, after receiving workers' compensation benefits, the employee settles a claim against a responsible third party without the employer's consent.
2. Whether the statutory bar applies when the third-party settlement occurs before the workers' compensation claim has been resolved and the settlement is less than the anticipated workers' compensation benefits.
3. Whether the employer's liability is terminated when the employee's settlement releases the third party from liability, even though the employer was aware of settlement negotiations but did not participate in them.

Disposition

affirmed