# Barnes v. Hendrick Auto.

> Court of Appeals of North Carolina · January 21, 2014

URL: https://www.frixlaw.com/law-library/cases/2729318

## Case

- **Court:** Court of Appeals of North Carolina
- **Decided:** January 21, 2014
- **Precedential status:** Unpublished
- **Opinion:** Opinion
- **Cited by:** 0 later opinions in the Frix Law Library

## Citator (automated)

- No negative treatment found by the automated citator. That is not the same as a confirmation that the case is good law; read the citing cases.
- Full citator and citing cases: https://www.frixlaw.com/law-library/cases/2729318

## How later opinions describe it (automated extraction)

- holding that the mediated settlement agreement was enforceable against the plaintiff even though the agreement lacked “all the required terms and language” because it was signed by the parties and conformed with the compromise settlement agreement

## Opinion text

An unpublished opinion of the North Carolina Court of Appeals does not constitute
controlling legal authority. Citation is disfavored, but may be permitted in
accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of
A p p e l l a t e P r o c e d u r e .

NO. COA13-537
NORTH CAROLINA COURT OF APPEALS

Filed: 21 January 2014

CLAUDE L. BARNES,
Employee, Plaintiff,

v. North Carolina
Industrial Commission
I.C. No. W80523
HENDRICK AUTOMOTIVE,
Employer,

and

FEDERAL INSURANCE CO.,
Carrier, Defendants.

Appeal by Plaintiff from opinion and award filed 15 January

2013 by the North Carolina Industrial Commission. Heard in the

Court of Appeals 9 October 2013.

Oxner Thomas & Permar, PLLC, by John R. Landry, Jr., for
Plaintiff.

Jones, Hewson & Woolard, by Lawrence J. Goldman, for
Defendants.

STEPHENS, Judge.

Factual and Procedural Background
-2-
Plaintiff Claude Barnes suffered a knee injury while

serving in the Vietnam War. Before 20 April 2010, the knee

injury had not “really ever bothered [him] very much at all.” On

that date, however, Plaintiff stepped between two fighting

employees at work. One of the employees hit Plaintiff, resulting

in further injury to his knee and an additional injury to his

shoulder. Plaintiff was employed by Defendant Hendrick

Automotive at the time. On 28 April 2010, Plaintiff saw Dr.

Christopher J. Barnes. Dr. Barnes diagnosed right knee

osteoarthritis and noted that Plaintiff’s symptoms were likely

“an exacerbation of his preexisting arthrosis.”

Plaintiff presented to Dr. Murray Seidel on 11 May 2010.

Dr. Seidel determined that Plaintiff had probably lost “full

extension of his knee for many years.” Seven days later, Dr.

Seidel recommended knee arthroplasty. Between his visits to Dr.

Seidel, Plaintiff also met with Dr. Bradley Broussard. Dr.

Broussard diagnosed “tricompartmental degenerative joint

disease” and opined that Plaintiff’s Vietnam War injury was

“probably aggravated” by his workplace injury. Dr. Broussard

advised that Plaintiff was “unable to work in any capacity until
-3-
further notice.”1 Defendants authorized and paid for the

treatment provided in these examinations.

On 18 May 2010, Dr. Seidel allowed Plaintiff to return to

work with the restrictions that he (1) not stand continuously

for eight to ten hours and (2) sit for at least twenty minutes

each hour. There was a dispute regarding Plaintiff’s ability to

work for Defendant-employer under these restrictions, and

Plaintiff thereupon filed a Form 33, requesting a hearing before

the North Carolina Industrial Commission (“the Commission”).

By order of the Commission, the parties held a mediated

settlement conference on 22 July 2011. Plaintiff was represented

by counsel during the conference and executed the mediated

settlement agreement (“MSA”) as a result. Pursuant to the MSA,

Plaintiff waived his right to further workers’ compensation

benefits, including any right to reimbursement for expenses paid

by Plaintiff, in return for $15,000. Among other things, the

parties agreed to “execute all necessary [f]orms and/or a

standard [c]ompromise [s]ettlement [a]greement (“CSA”)2 which

complie[d] with [N.C. Gen. Stat. §] 97-17.” The CSA was to be

prepared by Defendants. Defendants submitted the CSA to

Plaintiff’s counsel on 1 August 2011. Sixteen days later,

1
The record does not indicate that Plaintiff met with Dr.
Broussard again.
2
A CSA is also known as a “clincher agreement.”
-4-
Plaintiff’s counsel advised Defendants’ counsel that Plaintiff

refused to sign the CSA. As a result, Defendants filed a Form 33

requesting a hearing.

The hearing was held on 7 November 2011. Afterward, the

deputy commissioner concluded that the MSA was unenforceable due

to failure to comply with N.C. Gen. Stat. § 97-17(b)(2) and

Industrial Commission Rule 502. Accordingly, the deputy

commissioner declined to approve the MSA as a final settlement

agreement. Defendants appealed to the full Commission. On 15

January 2013, the Commission concluded that the MSA was a valid

and enforceable contract under section 97-17 and Rule 502. In

addition, the Commission concluded that the MSA was fair and

just and that Plaintiff had failed to establish fraud,

misrepresentation, undue influence, or mutual mistake of fact.

Therefore, Plaintiff was compelled to execute the CSA and

Defendants were ordered to make payments in accordance with that

agreement. Plaintiff appeals the Commission’s 15 January 2013

opinion and award.

Standard of Review

Review of an opinion and award of the Commission “is

limited to consideration of whether competent evidence supports

[its] findings of fact and whether the findings support the

Commission’s conclusions of law.” Richardson v. Maxim
-5-
Healthcare/Allegis Grp., 362 N.C. 657, 660, 669 S.E.2d 582, 584

(2008) (citation omitted). Where there is competent evidence to

support the Commission’s findings, they are binding on appeal

even in light of evidence to support contrary findings. McRae v.

Toastmaster, Inc., 358 N.C. 488, 496, 597 S.E.2d 695, 700

(2004). The Commission’s conclusions of law are reviewed de

novo. Ramsey v. S. Indus. Constructors, Inc., 178 N.C. App. 25,

30, 630 S.E.2d 681, 685 (2006). Unchallenged findings of fact

are binding on appeal. Johnson v. Herbie’s Place, 157 N.C. App.

168, 180, 579 S.E.2d 110, 118 (2003).

Discussion

On appeal, Plaintiff argues that the Commission erred in

determining that the MSA was valid and enforceable against him

because (1) the MSA did not comply with Rule 502 or N.C. Gen.

Stat. § 97-17, (2) there was no meeting of the minds between the

parties, and (3) the terms of the MSA were not fair and just.

Accordingly, Plaintiff asserts that he is not bound by the terms

of the MSA because he refused to sign it.3 We affirm the

3
Plaintiff also states in numerous places throughout his brief
that “Defendants did not file a Form 60, 61, or 63 with the
Industrial Commission in response to Plaintiff’s Form 18.”
Plaintiff does not explain, however, how this asserted fact
affects the validity of the Commission’s opinion and award or
how it applies to the arguments he has raised on appeal. This
does not constitute a reviewable argument, and we do not address
it further. See generally N.C.R. App. P. 28(a) (“The function of
all briefs required or permitted by these rules is to define
-6-
Commission’s opinion and award, which enforced the MSA against

Plaintiff and compelled him to execute the CSA.

I. Rule 502 and N.C. Gen. Stat. § 97-17

As Plaintiff notes in his brief, the MSA did not include a

list of Plaintiff’s known medical expenses, but the CSA did. On

appeal, Plaintiff argues that Defendants violated Industrial

Commission Rule 502 and N.C. Gen. Stat. § 97-17 by failing to

include a list of medical expenses as part of the MSA.

Therefore, Plaintiff contends, he is not bound by that document.

We disagree.

Industrial Commission Rule 502, entitled “Compromise

Settlement Agreements,” states in pertinent part that:

(c) No compromise agreement will be
considered unless the following additional
requirements are met:

. . .

(3) The settlement agreement must
contain a list of all of the known
medical expenses of the employee
related to the injury to the date
of the settlement agreement,
including medical expenses that
the employer or insurance carrier
disputes, when the employer or
carrier has not agreed to pay all
medical expenses of the employee

clearly the issues presented to the reviewing court and to
present the arguments and authorities upon which the parties
rely in support of their respective positions thereon. The scope
of review on appeal is limited to issues so presented in the
several briefs.”).
-7-
related to the injury up to the
date of the settlement agreement.

4 N.C. Admin. Code 10A.0502 (2012).4

The heading for Rule 502 specifies that the language

contained therein, requiring a “list of all known medical

expenses” to be included in the settlement agreement, limits

that requirement to compromise settlement agreements. Because

Defendants included a list of medical expenses as a part of the

compromise settlement agreement in this case — i.e., the CSA —

they did not violate Rule 502. Accordingly, Plaintiff’s argument

is overruled as it pertains to Rule 502.

N.C. Gen. Stat. § 97-17, entitled “Settlements allowed in

accordance with Article,” reads in pertinent part as follows:

(a) This article does not prevent
settlements made by and between the employee
and employer so long as the amount of
compensation and the time and manner of
payment are in accordance with the
provisions of this Article. A copy of a
settlement agreement shall be filed by the
employer with and approved by the
Commission. No party to any agreement for
compensation approved by the Commission
shall deny the truth of the matters
contained in the settlement agreement,
4
Plaintiff refers to this rule as “502(3)(c),” and the
Commission’s website lists it as the same. Workers’ Compensation
Rules, The North Carolina Industrial Commission
http://www.ic.nc.gov/ncic/pages/comprule.htm (revisions
effective 1 January 2011 and 1 January 2013). Title 4 of the
2012 edition of the North Carolina Administrative Code (“the
Code”), however, lists this rule as 502(c)(3). Treating the Code
as the authoritative text, we use the latter designation.
-8-
unless the party is able to show to the
satisfaction of the Commission that there
has been error due to fraud,
misrepresentation, undue influence or mutual
mistake, in which event the Commission may
set aside the agreement. . . .

(b) The Commission shall not approve a
settlement agreement under this section,
unless all of the following conditions are
satisfied:

(1) The settlement agreement is
deemed by the Commission to be
fair and just, and that the
interests of all of the parties
and of any person, including a
health benefit plan that paid
medical expenses of the
employee[,] have been considered.

(2) The settlement agreement
contains a list of all the known
medical expenses of the employee
related to the injury to the date
of the settlement agreement,
including medical expenses that
the employer or carrier disputes,
and a list of medical expenses, if
any, that will be paid by the
employer under the settlement
agreement.

(3) The settlement agreement
contains a finding that the
positions of all of the parties to
the agreement are reasonable as to
the payment of medical
expenses. . . .

N.C. Gen. Stat. § 97-17(a)–(b) (2013) (emphasis added).

While section 97-17 does not expressly use the term

“compromise settlement agreement,” as Rule 502 does, we conclude
-9-
that the “settlement agreement” to which section 97-17 pertains

is the final compromise settlement agreement required to be

approved by the Commission. See id. The mediated settlement

agreement is simply the document used to memorialize the

substantive terms reached between the parties during the

mediated settlement conference. It is not the settlement

agreement that the Commission approves. While the terms

memorialized in a mediated settlement agreement may be used to

enforce the parties’ settlement, the practice of memorializing

the settlement in a mediated settlement agreement document is

not — and was never meant to be — the same as the creation of

the final settlement agreement strictly regulated under section

97-17. That is the role of the compromise settlement agreement.

See, e.g., Lemly v. Colvard Oil Co., 157 N.C. App. 99, 104, 577

S.E.2d 712, 716 (2003) (holding that the mediated settlement

agreement was enforceable against the plaintiff even though the

agreement lacked “all the required terms and language” because

it was signed by the parties and conformed with the compromise

settlement agreement). Therefore, we hold that the MSA is not

unenforceable under Rule 502 or section 97-17 for lacking a list

of medical expenses when such a list was included in the CSA.

Accordingly, Plaintiff’s first argument is overruled.

II. Meeting of the Minds
-10-
In his second argument on appeal, Plaintiff contends that

the MSA is unenforceable because there was no “meeting of the

minds” during the mediated settlement conference. For support,

Plaintiff cites an alleged contradiction between (a) the MSA and

his own testimony as compared to (b) a statement made by counsel

for Defendants during the 7 November 2011 hearing before the

deputy commissioner. The MSA states that “Defendants have

reasonably denied Plaintiff’s claims for compensation.” At the

hearing, Plaintiff testified that he understood Defendants had

“denied the whole [20 April 2010] claim.” At the same hearing,

however, counsel for Defendants stated that “Plaintiff sustained

an admittedly compensable right knee injury on [20 April 2010].”

Therefore, Plaintiff asserts that the MSA is not enforceable

because “[t]he foregoing facts offer competent evidence that

there was not a meeting of the minds as to the accepted versus

denied status of Plaintiff’s claim for purposes of settlement of

his claim via the [MSA].” We disagree.

Plaintiff’s argument misapprehends our role in reviewing an

opinion and award of the Commission. As noted above, we review

the Commission’s conclusions of law to ensure they are supported

by its findings of fact and review its findings of fact to

ensure that they are supported by competent evidence.

Richardson, 362 N.C. at 660, 669 S.E.2d at 584. We lack the
-11-
authority to weigh the evidence and make findings based on that

evidence. Adams v. AVX Corp., 349 N.C. 676, 681, 509 S.E.2d 411,

414 (1998) (“The findings of fact by the Industrial Commission

are conclusive on appeal if supported by any competent evidence.

Thus, on appeal, [the appellate court] does not have the right

to weigh the evidence and decide the issue on the basis of its

weight. The court’s duty goes no further than to determine

whether the record contains any evidence tending to support the

finding.”) (citation and internal quotation marks omitted;

emphasis added).

In this case, the Commission found the following pertinent

facts:

5. Although[] the July 22, 2011 [MSA]
indicates in regards to “Compensability”
that “Defendants have reasonably denied
Plaintiff’s claims for compensation,”
Defendants’ post-hearing contentions
submitted to the Deputy Commissioner stated
that “Plaintiff sustained an admittedly
compensable right knee injury on April 20,
2010.”

. . .

17. In considering whether the settlement
amount is fair and just and in the best
interest of all parties, the . . .
Commission has considered that there were
contested issues in this claim, which
included the differing medical opinions as
to the extent of Plaintiff’s work
restrictions, whether Defendant-[e]mployer
could accommodate those work restrictions,
and the need for future medical treatment
-12-
and whether the potential future surgery
referenced by Dr. Seidel would be related to
the work injury or entirely the result of
the pre-existing knee injury from
Plaintiff’s military service in Vietnam, as
well as Plaintiff’s alleged failure to
recall his reading or signing the [MSA] due
to low blood sugar. Based upon a
preponderance of the evidence of record, the
. . . Commission finds that the $15,000.00
settlement amount was fair and just and in
the best interests of all parties.

18. . . . Plaintiff knowingly and willingly,
and with counsel, entered into a binding
contractual agreement at mediation to
execute a [CSA] that would compromise and
finally settle the workers’ compensation
claim related to his April 20, 2010 injury.

Acknowledging counsel for Defendants’ post-hearing contention to

the deputy commissioner, the Commission nonetheless determined

that the MSA constituted a binding contractual agreement.

Plaintiff does not dispute this finding as not based on

competent evidence or not supporting the Commission’s

conclusions of law. Therefore, it is binding on appeal, “even

though there is evidence that would support findings to the

contrary,” McRae, 358 N.C. at 496, 597 S.E.2d at 700,5 and

Plaintiff’s second argument is overruled.

5
We note that the post-hearing statement made by counsel for
Defendants was not necessarily contradictory. It is reasonable
to admit the occurrence of an on-the-job incident, but deny for
other reasons the existence of a right to compensation, as was
clearly the case here.
-13-
Even assuming that Plaintiff properly challenged the

Commission’s findings as not based on competent evidence or not

supporting its conclusions of law, we note that there is

evidence in the record to support the existence of a meeting of

the minds between the parties during the mediated settlement

conference. As a rule, “compromise settlement agreements,

including mediated settlement agreements, are governed by

general principles of contract law.” Kee v. Caromont Health,

Inc., 209 N.C. App. 193, 195, 706 S.E.2d 781, 783 (2011)

(citation and internal quotation marks omitted). Such principles

dictate that

[t]he court is to interpret a contract
according to the intent of the parties to
the contract, unless such intent is contrary
to law. If the plain language of a contract
is clear, the intention of the parties is
inferred from the words of the contract.
When the language of the contract is clear
and unambiguous, construction of the
agreement is a matter of law for the court,
and the court cannot look beyond the terms
of the contract to determine the intentions
of the parties.

Williams v. Habul, __ N.C. App. __, __, 724 S.E.2d 104, 111

(2012) (citations and internal quotation marks omitted). “It is

a well-settled principle of contract law that a valid contract

exists only where there has been a meeting of the minds as to

all essential terms of the agreement.” Northington v.

Michelotti, 121 N.C. App. 180, 184, 464 S.E.2d 711, 714 (1995)
-14-
(citation omitted). “When a party affixes his signature to a

contract, he is manifesting his assent to the contract.” Mosley

v. WAM, Inc., 167 N.C. App. 594, 599, 606 S.E.2d 140, 143 (2004)

(citation omitted).

In this case, the MSA clearly stated that Defendants

reasonably denied Plaintiff’s claim for compensation. That

document was signed by both Plaintiff and Defendants. Therefore,

the parties’ signatures, alone, constituted competent evidence

to support the Commission’s conclusion that they entered into a

binding, contractual agreement. See generally Mosley, 167 N.C.

App. at 599, 606 S.E.2d at 143. The post-hearing statement made

by counsel for Defendants could not change this fact.

III. Fair and Just

Plaintiff also contends that the Commission erred in

determining that the terms of the MSA were fair and just and,

thus, in enforcing the MSA against him. For support, Plaintiff

asserts that the Commission erroneously (1) failed to establish

whether Plaintiff’s claim was contested or uncontested, (2)

shifted to Plaintiff “the burden of proof as to the causal

relationship between the recommended knee arthroplasty and

Plaintiff’s compensable knee injury,” and (3) based its

determination on information not available at the time of the

settlement negotiations. We are unpersuaded.
-15-
Section 97-17(b) provides that the Commission shall not

approve a settlement agreement unless the agreement is, inter

alia, deemed “fair and just” by the Commission. N.C. Gen. Stat.

§ 97-17(b). Rule 502(a) also provides that “[o]nly those

[compromise settlement] agreements deemed fair and just and in

the best interest of all parties will be approved.” 4 N.C.

Admin. Code 10A.0502 (2012).

“Every compensation and compromise agreement between an

employer and an injured employee must be determined by the

Commission to be fair and just prior to its approval.” Lewis v.

Craven Reg’l Med. Ctr., 134 N.C. App. 438, 441, 518 S.E.2d 1, 3

(1999), affirmed, 352 N.C. 668, 535 S.E.2d 33 (2000). In making

that determination, the Commission must undertake a

full investigation . . . in order to assure
that the settlement is in accord with the
intent and purpose of the [Workers’
Compensation] Act that an injured employee
receive the disability benefits to which he
is entitled, and, particularly, that an
employee qualifying for disability
compensation under both sections 97-29
and -31 have the benefit of the more
favorable remedy.

Vernon v. Steven L. Mabe Builders, 336 N.C. 425, 432–33, 444

S.E.2d 191, 195 (1994). Generally speaking,

the fair and just determination is somewhat
subjective in nature. Neither the statutory
Workers’ Compensation Act nor the Workers’
Compensation Rules provide a specific
procedure or guideline for deciding what is
-16-
fair and just. While Rule 502 sets forth
what must be contained in a compromise
agreement, it does not specify how the
Commission should go about its fair and just
determination. The Commission must
necessarily take into account the validity
of the plaintiff’s claim, despite the fact
that the issue of compensability is not
before it. In many instances, the amount of
the settlement reached reflects how the
parties perceive the viability of the
plaintiff’s claim. The Commission is not
blind to this reality, but it must determine
for itself whether the settlement is fair
and just based on the evidence before it.

Malloy v. Davis Mechanical Inc., __ N.C. App. __, __, 720 S.E.2d

739, 744 (2011). In determining whether the settlement agreement

is fair and just, the Commission should consider the information

available to the parties at the time of the settlement

negotiations and take into account whether the plaintiff was

represented by counsel. See id. at __, 720 S.E.2d at 743; Kyle

v. Holston Grp., 188 N.C. App. 686, 696, 656 S.E.2d 667, 674

(2008) (holding that the settlement agreement was unenforceable

as not fair and just, in part because the plaintiff was

“unrepresented and unaware at the time of settling his case

that, under the law, he was entitled to the most favorable

remedy available to him, including total disability benefits if

he was totally disabled”).
-17-
In addition to finding of fact 17, quoted above, the

Commission made the following pertinent findings of fact

regarding whether the settlement agreement was fair and just:

16. At the hearing before the Deputy
Commissioner, Plaintiff, who was represented
by counsel at the mediation on July 22,
2011, testified he did not remember reading
or signing the [MSA] as a result of low
blood sugar resulting from his diabetic
condition. Plaintiff also testified that he
did not notify his attorney that he was not
feeling well at the time of the mediation
and at no time requested to take a
break. . . .

. . .

18. Based upon a preponderance of the
evidence of record, the . . . Commission
finds that Plaintiff knowingly and
willingly, and with counsel, entered into a
binding contractual agreement at mediation
to execute a [c]ompromise [s]ettlement
[a]greement that would compromise and
finally settle the workers’ compensation
claim related to his April 20, 2010 injury.

19. When viewed in light of the facts of the
case at the time of the settlement, and
based upon a preponderance of the evidence
of record, the . . . Commission finds that
the [CSA] that was drafted by Defendants and
which Plaintiff refused to sign was fair and
just and in the interests of all of the
parties.

A. The Commission’s Duty to Consider the Contested or
Uncontested Nature of Plaintiff’s Claim
-18-
Citing Malloy, Plaintiff first contends that the settlement

agreement is not fair and just because the Commission made no

determination regarding whether Plaintiff’s claim was contested

or uncontested on the issue of compensability. Plaintiff

contends that this determination is “vital” to the Commission’s

decision because it impacts whether the Commission considers the

fair and just issue in the light most favorable to Plaintiff. We

are unpersuaded.

In Malloy, we stated in obiter dictum that we believed the

Commission erred in reviewing the plaintiff’s claim “in the most

favorable manner” to the plaintiff because that claim was

contested on the issue of compensability. Malloy, __ N.C. App.

at __, 720 S.E.2d at 744. We reasoned that,

[w]hen a claim is contested, . . . the
plaintiff is not able to select the more
favorable remedy. In that situation, the
plaintiff is faced with the possibility of
receiving no compensation if he or she
proceeds to a hearing on compensability and
does not prevail. The plaintiff must
scrutinize the validity of his or her claim
and determine if a settlement would be in
his or her best interest.

Id. We also noted that the Commission should make its fair and

just determination by considering the facts in a manner most

favorable to the plaintiff only when the plaintiff’s claim is

uncontested. Id. In that circumstance, “the Commission is, in a

sense, considering the plaintiff’s claim in the most favorable
-19-
manner in order to ensure that the plaintiff is receiving the

maximum remedy possible in an uncontested claim.” Id. (emphasis

added). This is because (1) the defendant has already admitted

compensability and (2) the Commission must ensure that the

plaintiff is treated fairly for essentially agreeing to waive

the judicial process and accept compensation without those

safeguards.

In this case, Plaintiff’s claim was contested on multiple

issues. Though the Commission did not label Plaintiff’s claim as

“contested” on the particular issue of compensability, it

enforced the MSA, which stipulated that “Defendants have

reasonably denied Plaintiff’s claims for compensation,” and

described a number of “contested issues” in finding of fact 17

supporting Defendant’s denial of those claims. For these

reasons, Plaintiff’s claim was not subject to the special

consideration described in Malloy. Accordingly, we hold that the

Commission’s opinion and award sufficiently described

Plaintiff’s claim for the purposes of engaging in its fair and

just decision-making process. Therefore, Plaintiff’s first

argument is overruled.

B. Burden of Proof

In his second argument regarding the Commission’s fair and

just determination, Plaintiff contends that the Commission
-20-
misapplied the law. Specifically, Plaintiff asserts that the

Commission “incorrectly shift[ed] the burden of proof” as to the

causal relationship between the knee surgery recommended by Dr.

Seidel and Plaintiff’s knee injury in its findings of fact 8 and

17, requiring Plaintiff to prove that future treatment is

related to the workplace injury. Plaintiff contends that, in

fact, “there is a presumption that Plaintiff’s recommended

additional medical treatment, including surgery, is related to

his compensation [sic] knee injury, unless there is evidence

offered to rebut such presumption and no such evidence was

offered to rebut the presumption in this matter.” We are

unpersuaded.

Finding of fact 8 reads as follows:

On May 18, 2010, Plaintiff again presented
to Dr. Seidel who placed work restrictions
on Plaintiff of no standing continuously for
eight to ten hours with sitting twenty
minutes every hour. Dr. Seidel noted the
work restrictions would remain in effect for
three weeks. Dr. Seidel noted that Plaintiff
would have to seriously consider a knee
arthroplasty; however, the . . . Commission
finds that there is insufficient evidence to
determine whether Dr. Seidel considered such
surgery related to the Vietnam injury
exclusively or due to an aggravation of the
pre-existing condition as a result of the
work injury.
-21-
Finding of fact 17, quoted above, lists as a “contested issue[]”

whether the “potential future surgery” would be related to the

work injury or the Vietnam injury.

Plaintiff’s argument evidences a misunderstanding of the

process the Commission must undertake when determining whether a

settlement agreement is fair and just. This Court has stated

that “[t]he Commission is required to . . . determine that a

settlement agreement is fair and just in order to assure that

the settlement is in accord with the intent and purpose of the

[Workers’ Compensation] Act that an injured employee receive the

disability benefits to which he is entitled.” Kyle, 188 N.C.

App. at 695, 656 S.E.2d at 673 (citations and internal quotation

marks omitted). While this process sometimes requires the

Commission to take the validity of the plaintiff’s claim into

consideration, it does not impose the burden of engaging in a

detailed analysis of the law as it applies to the facts of a

particular claim.

Here, as Defendants point out, the Commission “was not

determining whether future medical treatment was related to the

original work injury. [It] recognized that the future medical

treatment was a contested issue,” which would have been in

contention in a hearing. As a matter of procedure, such

questions must be addressed in a separate hearing before the
-22-
deputy commissioner — not in an argument on appeal as to the

enforceability of the parties’ settlement agreement. Therefore,

to the extent Plaintiff’s argument has any substantive legal

merit,6 it does not support his larger contention that the

settlement agreement is not fair and just. Accordingly, that

argument is overruled.

C. Information Available to the Parties at the Time of
the Settlement Negotiation

Plaintiff also contends that the Commission erred in its

fair and just determination because the information available to

the parties at the time of the negotiation was contradictory.

Specifically, Plaintiff points out that, while the MSA listed

his claim as “denied,” the Commission found that Plaintiff

sustained “compensable injuries” and counsel for Defendants

stated in a post-hearing contention that “Plaintiff sustained an

admittedly compensable right knee injury on April 20, 2010.”

Plaintiff concludes that “the information available to the

parties at the time of settlement is not consistent with the

information used by the . . . Commission in its analysis as to

whether or not the terms of the [MSA] are fair and just.” We

disagree.

Plaintiff’s argument misapplies the facts and misapprehends

the requirement that the fair and just determination take into
6
We offer no opinion on whether it does.
-23-
account only the information known by the parties at the time of

the settlement negotiations. See Malloy, __ N.C. App. at __, 720

S.E.2d at 743 (“[T]he Commission is required to evaluate the

settlement or mediation agreement based strictly on the evidence

available at the time the agreement was reached. To hold

otherwise would potentially permit either party to avoid their

contractual obligation should new circumstances arise prior to

approval by the Commission.”). First, Plaintiff’s assertion that

the Commission found he sustained compensable injuries to his

right knee and right shoulder is incorrect. The Commission only

found that “Plaintiff sustained a right knee and right shoulder

injury at work . . . .” It properly declined to make any

findings regarding the consequences of Plaintiff’s injury as

they relate to compensability. Second, even assuming that

Defendants’ post-hearing statements to the deputy commissioner

regarding the compensability of Plaintiff’s injury are relevant

to the cited rule7 or are contradictory, such comments were made

after the settlement negotiations occurred and, thus, have no

bearing on the Commission’s fair and just determination as it

pertains to the information available to the parties at the time

of the settlement negotiations. Moreover, we reiterate that
7
As the rule only requires the Commission to take into account
the information available to the parties at the time of the
settlement negotiations, we do not believe those statements are
relevant.
-24-
while Defendants did not contest the occurrence of an on-the-job

accident involving Plaintiff’s right knee, they raised multiple

issues as to the compensable consequences, if any, of that

accident. Accordingly, Plaintiff’s third argument is overruled.

IV. The CSA

Lastly, Plaintiff contends that the Commission is prevented

from enforcing the CSA against him pursuant to Rule 502(c)(2)

because it was not signed by the parties. This argument is

without merit.

As discussed above, the CSA comprises the fully executed

settlement agreement between the parties. Because the MSA was

signed by the parties and is valid and enforceable, the

signature requirement of Rule 502(c)(2) is satisfied.

Accordingly, Plaintiff’s final argument is overruled, and the

Commission’s opinion and award is

AFFIRMED.

Judges CALABRIA and ELMORE concur.

Report per Rule 30(e).

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Source: Frix Law Library, https://www.frixlaw.com/law-library/cases/2729318. Public record. Not legal advice.
