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Facts

A worker sustained a work-related injury in November 1999, resulting in quadriplegia. The worker's insurer provided disability benefits and medical expenses, including a $20,000 payment for housing modifications. The worker and his spouse used the funds to purchase a new mobile home instead of modifying their existing one. The worker later filed a complaint seeking a partial lump sum payment for debts incurred during his disability. He passed away in August 2002 before the issue was resolved (paras 2-5).

Procedural History

  • Workers' Compensation Administration: Denied the worker's claim for a lump sum payment and dismissed the complaint with prejudice (paras 1, 6).

Parties' Submissions

  • Appellant (Worker's widow and personal representative): Argued that the insurer should pay a lump sum of $105,476.89 for debts incurred during the worker's disability and that the $20,000 agreement limiting housing-related benefits was invalid as it was not approved by the Workers' Compensation Administration (paras 7, 20).
  • Appellees (Employer and Insurer): Contended that the lump sum payment was not viable after the worker's death, as unaccrued benefits terminate upon death under Section 52-1-47(C). They also argued that the $20,000 agreement was valid and enforceable (paras 12-14, 20).

Legal Issues

  • Does Section 52-1-47(C) of the Workers' Compensation Act preclude a lump sum payment for debts when the worker dies before the payment is approved? (paras 9-10).
  • Is the $20,000 agreement limiting housing-related benefits valid and enforceable without approval from the Workers' Compensation Administration? (para 20).

Disposition

  • The Court of Appeals affirmed the Workers' Compensation Administration's decision, denying the lump sum payment and upholding the validity of the $20,000 agreement (para 23).

Reasons

Per Sutin J. (Castillo J. concurring):

  • Lump Sum Payment: The court held that Section 52-1-47(C) unequivocally terminates unaccrued benefits upon a worker's death. The worker's petition for a lump sum payment could not survive his death, as the benefits could no longer be credited against future periodic payments. The court distinguished this case from Holliday v. Talk of the Town, Inc., which involved benefits accrued before death (paras 15-18).
  • $20,000 Agreement: The court found the agreement valid and enforceable, as it constituted a reasonable compromise regarding housing-related medical care. The worker and his spouse voluntarily entered into the agreement, and the increased mortgage debt was not medically necessary under Section 52-1-49. The court rejected the argument that the agreement required approval by the Workers' Compensation Administration (paras 20-22).

Per Bustamante J. (specially concurring):

  • Agreed with the denial of the lump sum payment but expressed concerns about the $20,000 agreement. Bustamante J. argued that the agreement should have been subject to approval under Sections 52-5-13 and 52-5-14 to ensure fairness and prevent hasty decisions by unrepresented workers. However, the appellant's failure to provide evidence of reasonable costs for housing modifications precluded a different outcome (paras 25-27).
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