Miss. Ins. Guar. Ass'n., et al. v. Brewer


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Docket Number: 2004-WC-00136-COA
Linked Case(s): 2004-CT-00136-SCT2004-WC-00136-COA2004-WC-00136-COA
Oral Argument: 01-13-2005
 

 

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Court of Appeals: Opinion Link
Opinion Date: 07-26-2005
Opinion Author: ISHEE, J.
Holding: Reversed and Remanded

Additional Case Information: Topic: Workers’ compensation - Intervention in civil action - M.R.C.P. 24(a) - Section 71-3-71 - Repayment - Court approval of settlement
Judge(s) Concurring: KING, C.J., BRIDGES AND LEE, P.JJ., IRVING, MYERS, CHANDLER, AND BARNES, JJ.
Non Participating Judge(s): GRIFFIS, J.
Procedural History: Admin or Agency Judgment
Nature of the Case: CIVIL - WORKERS' COMPENSATION

Trial Court: Date of Trial Judgment: 12-09-2003
Appealed from: Hinds County Circuit Court
Judge: Bobby DeLaughter
Disposition: APPELLANT’S MOTION TO INTERVENE DENIED
Case Number: 251-96-751

  Party Name: Attorney Name:  
Appellant: THE MISSISSIPPI INSURANCE GUARANTY ASSOCIATION; DANIEL P. DARE, M.D.; AND RIVER REGION MEDICAL CORPORATION




MICHELLE BARLOW MIMS, ROBERT L. GRANT, MILDRED M. MORRIS, R. E. PARKER, DIANE V. PRADAT, KENNETH S. WOMACK, WILLIAM W. MCKINLEY



 

Appellee: DOT BREWER ROBERT S. MURPHREE, WAYNE E. FERRELL, JR.  

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Topic: Workers’ compensation - Intervention in civil action - M.R.C.P. 24(a) - Section 71-3-71 - Repayment - Court approval of settlement

Summary of the Facts: Dot Brewer was employed by the Riverboat Corporation of Mississippi and worked at the Isle of Capri Casino in Vicksburg. She sustained an injury to her back while performing her job duties at the casino. Brewer subsequently sought treatment from Daniel Dare, M.D. and the River Region Medical Corporation. Dr. Dare performed back surgery on Brewer in order to alleviate her back pain. Brewer became a paraplegic as a result of the surgery, and she subsequently initiated a negligence action against Dr. Dare and River Region. Brewer filed a claim with Riverboat for workers’ compensation benefits. Riverboat and Home Insurance Company denied her claim. The Workers’ Compensation Commission ruled that Riverboat and Home Insurance were obligated to pay for the surgical aggravation of Brewer’s compensable back injury, and the Commission ordered Riverboat and Home Insurance to pay for all of Brewer’s medical expenses. Riverboat and Home Insurance thereafter began making payments for workers’ compensation benefits and medical expenses. Additionally, Riverboat and Home Insurance sought to intervene in Brewer’s negligence action against Dr. Dare and River Region in order to subrogate any monies received by Brewer. Brewer filed a motion to dismiss Riverboat and Home Insurance’s motion to intervene after she had reached a settlement in a confidential amount with Dr. Dare and River Region in the negligence action. The court granted Brewer’s motion to dismiss and refused to allow Riverboat and Home Insurance to intervene in the action or to subrogate any of the settlement monies. Riverboat and Home Insurance appeal, and River Region and Dr. Dare join in this appeal.

Summary of Opinion Analysis: Issue 1: Intervention Riverboat and Home Insurance argue that according to M.R.C.P. 24(a) and section 71-3-71, they were entitled to intervene in the negligence action between Brewer, Dr. Dare, and River Region in order to protect their statutory subrogation interests. The circuit court ruled that the surgically induced paraplegia did not arise out of and in the course of employment as defined by section 71-3-3(b), and that since it was not a work-related injury, it was not governed by section 71-3-71. Aggravation by a physician of an injury sustained by an employee in the scope of his employment is compensable. Therefore, Brewer’s paraplegia was not a separate and distinct injury, but was rather an aggravation of the existing work-related back injury. Pursuant to section 71-3-7, Riverboat and Home Insurance have a statutory obligation to provide Brewer with workers’ compensation benefits for her initial injury and for the subsequent aggravation of that injury. However, under section 71-3-71, the employer’s obligation to compensate an employee for the medical aggravation of a work-related injury also implicates the employer’s right to receive reasonable notice of, and the opportunity to join in, any action between an employee and a third party which arises out of a compensable work related injury. Therefore, the court erred in denying the motion to intervene. Issue 2: Repayment Riverboat and Home Insurance argue that the plain language of section 71-3-71 entitles them to repayment from the net proceeds of Brewer’s negligence action. Brewer argues that the employer and workers’ compensation insurance carriers are not entitled to subrogation until the injured employee has been made whole. The Legislature expressly created the right to subrogation in section 71-3-71. Therefore, Riverboat and Home Insurance have a statutory right of subrogation for monies paid to Brewer after she was made a paraplegic. Issue 3: Court approval of settlement River Region and Dr. Dare argue that the court erred in its ruling that there was no requirement that the settlement reached between Brewer and themselves in the negligence action be approved by the court. Since Brewer’s paraplegia was a compensable injury under the workers’ compensation statute, the settlement for the negligence action required approval under section 71-3-71.


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