Reeves-Hasan v. Neighborhood Assistance Corp.
I.C. NO. W62673.
| N.C. Indus. Comm. | Nov 15, 2011Background
- Full Commission reviewed the prior Opinion and Award after briefing from the parties.
- Mediation occurred May 21, 2010, before James W. Walker, with Plaintiff represented by Justice H. Campbell and Defendants by Glenn E. Miller, Jr.
- Plaintiff and Defendants settled the claim: $14,400 from Defendants in exchange for waiver of further WC benefits, with Plaintiff to sign a compromise settlement for IC approval.
- Plaintiff refused to sign the compromise settlement drafted by defense counsel; a Form 33 was later filed to enforce the mediated settlement.
- The Commission found the mediated settlement and Rule 502 compliance sufficient and that the agreement was fair, just, and in the best interests of both parties.
- Plaintiff’s former counsel asserted a lien for fees ($3,434.24), which the Commission ultimately approved as reasonable and payable from the settlement amount.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the mediated settlement enforceable? | Plaintiff contends the mediation result is not enforceable since she did not sign the compromise. | Defendants argue the mediated settlement is a binding contract despite Plaintiff later refusing to sign the compromise. | Yes; the mediated settlement is enforceable. |
| Does the settlement comply with Rule 502 form requirements? | Plaintiff claims the form or supporting materials are defective. | Defendants assert the settlement was drafted in proper form with required records and release. | Yes; it complied with Rule 502. |
| Is the settlement fair, just, and in the best interests of the parties? | Plaintiff argues the settlement may not be in her best interests. | Defendants maintain the settlement is fair and in both parties’ interests. | Yes; the settlement is fair and in the parties’ best interests. |
| Is the attorney’s fee to Plaintiff’s former counsel reasonable? | Plaintiff’s counsel seeks recovery of fees. | Defendants challenge or limit fee recovery to a reasonable amount. | Yes; $3,434.24 is reasonable and awarded. |
Key Cases Cited
- Bryant v. Dougherty, 267 N.C. 545, 148 S.E.2d 548 (1966) (jurisdiction and authority of IC to approve settlements; exclusive remedy rules)
- Holden v. Boone, 153 N.C. App. 254, 569 S.E.2d 711 (2002) (IC approval of settlements under Rule 502 and contract principles)
- Lemly v. Colvard Oil Co., 157 N.C. App. 99, 577 S.E.2d 712 (2003) (mediated/compromise settlements governed by contract law)
- Glenn v. McDonald's, 109 N.C. App. 45, 425 S.E.2d 727 (1993) (fraud/misrepresentation burdens in settlement claims)