§ 28-33-25 - Settlement for lump sum or structured-type payment.
SECTION 28-33-25
§ 28-33-25 Settlement for lump sum orstructured-type payment. – (a) In case payments have continued for not less than six (6) months, theparties may petition the workers' compensation court for an order approving asettlement of the future liability for a lump sum or structured-type periodicpayment over a period of time.
(2) In considering the petition, a judge shall give dueweight to the fact that it is the policy of this chapter that compensation bepaid weekly.
(ii) The petition shall be considered by a judge of the courtand may be granted where it is shown to the satisfaction of the court that thepayment of a lump sum or structured-type payment in lieu of future weeklypayments will be in the best interest of all parties including the employee,employer, insurance carrier, and where applicable, the workers' compensationadministrative fund and the center for Medicare and Medicaid services (CMS) astheir interests may appear. Any proposed settlement that exceeds one hundredfour (104) weeks of compensation for partial incapacity may be rejected by thechief judge in his or her discretion. The employee shall be entitled to afinding amortizing the net settlement over his or her life expectancy.
(iii) In determining whether the settlement is in the bestinterest of all parties, the judge may refer the employee for a rehabilitationevaluation pursuant to the provisions of § 28-33-41.
(3) Upon payment, the employer and insurer shall be entitledto a duly executed release, which fully and finally absolves and discharges theemployer and insurer from any and all liability arising out of the injury.
(b) The provisions of this section shall be strictlyconstrued and all hearings for commutation shall be conducted in open session.
(c) No case may be settled to a lump sum or structured-typeperiodic payment while the Rhode Island temporary disability insurance fundand/or the department of social and rehabilitative services has a claim forpayments made under chapter 41 of this title unless agreement is made to payany claim from the lump sum or structured-type periodic payments.
(d) Attorneys' fees shall be fixed by the court, but in noevent shall any attorney's fee for representing an employee in connection witha petition brought pursuant to this section exceed a sum equal to twentypercent (20%) of the lump sum or twenty percent (20%) of the structured-typeperiodic payment reduced to present day value.
(e) No case shall be settled for a lump sum orstructured-type periodic payment unless it is placed upon the record in opensession, that the employer, if insured, has been advised by the insurer or itsagent of the potential effect of the settlement on its workers' compensationpremium, and has the opportunity to appear and state its disapproval of thesettlement.
(f) Settlements must be paid within fourteen (14) days ofentry of an order to pay or the date(s) upon which payment(s) is/are duepursuant to a court order, and a penalty of one hundred dollars ($100) shall beassessed for every day payment is delinquent.