Larry Kidd v. Crossrock Drilling. LLC, 2016 SC 000406

Larry Kidd filed a workers' compensation claim against his employer, Crossrock Drilling, alleging work-related injury and various benefit claims.
After a December 2014 hearing, Kidd's attorney and Crossrock's insurance adjuster negotiated a $55,000 lump-sum settlement with waiver of vocational rehab; Kidd's attorney was to prepare settlement documents.
The Administrative Law Judge (ALJ) issued an Opinion and Award on February 20, 2015, denying permanent disability and future medical benefits; Kidd received the award on February 25.
Kidd filed a timely petition for reconsideration asserting the settlement; he did not file the standard Form 1102 or a verified motion adopting the settlement, but attached email correspondence.
The ALJ declined to consider the settlement because no memorandum (Form 110) or verified motion was filed; the Workers' Compensation Board and Court of Appeals affirmed.
The Kentucky Supreme Court affirmed, holding Kidd failed to properly introduce the settlement into the record for ALJ review; a dissent would have allowed correction of verification and remanded for evidentiary hearing.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether email correspondence between parties sufficiently memorialized a settlement so the ALJ should enforce it	Kidd: emails show agreed essential terms and thus satisfy precedent allowing correspondence to constitute a memorandum of settlement	Crossrock: even if emails reflect terms, the settlement was never properly filed/verified with the ALJ as required by statute/regulation	Held: Correspondence alone was not properly before the ALJ because Kidd did not file Form 110 or a verified motion; ALJ properly declined to consider it
Whether a petition for reconsideration may introduce a settlement agreement when formal filing/verification is omitted	Kidd: his petition for reconsideration included the correspondence and should permit ALJ review of the settlement	Crossrock: petition for reconsideration is limited to correcting patent errors on the face of the award and cannot be used to inject unfiled settlement terms	Held: Petition for reconsideration is limited in scope; it cannot substitute for the required filing/verified motion to present a settlement for ALJ approval

Coalfield Tel. Co. v. Thompson, 113 S.W.3d 178 (Ky. 2003) (correspondence can memorialize settlement where terms are clear)
Skaggs v. Wood Mosaic Corp., 428 S.W.2d 617 (Ky. 1968) (written evidence can serve as memorandum required for settlement)
Hudson v. Cave Hill Cemetery, 331 S.W.3d 267 (Ky. 2011) (essential terms must be settled in writing for settlement to be complete)
Whittaker v. Pollard, 25 S.W.3d 466 (Ky. 2000) (settlement agreement, once approved, becomes an award)
Steams Coal & Lumber Co. v. Whalen, 98 S.W.2d 499 (Ky. 1936) (historical recognition that settlements become enforceable awards once approved)