754 S.E.2d 486
S.C.2014Background
- Frances S. Hudson injured at work in 1997; liability accepted by Employer and Legion.
- 2001 order found permanent disability; lump-sum request granted after hearings.
- Hudson died during pendency of the appeal; Appellate Panel affirmed lump-sum award.
- Guaranty and Employer argued award abated on death; insolvency led Guaranty to assume Legion's obligations.
- Circuit court upheld award and noted abatement issue was preserved; Guaranty/Employer stopped payments after death.
- Settlement between Estate and Grandsons approved under § 42-9-390, allocating 50% to Estate and 50% to Grandsons; dispute over distribution remained.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Abatement law of the case governs? | Hudson estate argues abatement preserved. | Employer/Guaranty contend law of the case not controlling. | Affirmed law-of-the-case ruling that abatement issue was unpreserved. |
| Should settlement distribute lump-sum to Grandsons under § 42-9-280? | Settlement valid; § 42-9-280 does not bar allocation among beneficiaries. | Appellate Panel erred in requiring entire award to Grandsons. | Reinstated circuit court settlement; not required to pay entire award to Grandsons. |
| Is interest on the lump-sum award appropriate? | Guaranty liable for interest due to direct liability for own conduct. | Interest limited to covered claims for insolvent carrier." | Interest proper; Guaranty liable for interest from April 27, 2004. |
| Is the ten-percent penalty appropriate under § 42-9-90? | Penalty should apply when timely payment not made. | Penalty should be excused if nonfrivolous defense; no extra circumstances shown. | Penalty affirmed; Appellate Panel abused discretion in excusing it. |
Key Cases Cited
- Judy v. Martin, 381 S.C. 455 (2009) (law-of-the-case precludes relitigation of unappealed order)
- In re Morrison, 321 S.C. 370 (1996) (law-of-the-case doctrine; unchallenged lower-order rulings)
- Watkins v. Hodge, 232 S.C. 245 (1958) (law-of-the-case; unchallenged rulings binding on appeal)
- Darden v. Witham, 258 S.C. 380 (1972) (courts favor settlements; public policy toward settlements)
- Futch v. McAllister Towing of Georgetown, Inc., 335 S.C. 598 (1999) (context of settlement and distribution issues in WC claims)