Contractual Statute of Limitation

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In Skaan v. Federal Express Corp, an opinion filed by the Court of Appeals of Tennessee at Jackson on December 13, 2012, the Court examined a contractual limitation provision in an employment contract.  The plaintiff filed a workers’ compensation claim and was eventually discharged from his employment.  Eight months after being termination, he filed a lawsuit for retaliatory discharge.  The defendant moved to dismiss the lawsuit by summary judgment based upon the following language found in the employment agreement:

“To the extent the law allows an employee to bring legal action against Federal Express Corporation, I agree to bring that complaint within the time prescribed by law or 6 months from the date of the event forming the basis of my lawsuit, whichever expires first.”

 In Tennessee, there is a “strong public policy in favor of upholding contracts. . . . absent fraud or duress, the law generally holds parties responsible for what they sign.”  The Court then ruled that a determination of whether the contract was enforceable was a question of law; and thus, an appropriate determination for summary judgment.

In Tennessee, parties may contract for a limitation period shorter than the period prescribed by law; though it must be reasonable.  The Court held that the contractual limitation period was enforceable, and thus, the plaintiff’s claim was dismissed.  The Court cited Morgan v. Town of Tellico Plains, 2002 WL 31429084 (Tenn.Ct.App. Oct. 30, 2002)(upholding a 60 day contractual limitation period) as support for the holding.

Cell Phone Use Problematic while Driving

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A study from Western Washington University, published in Applied Cognitive Psychology on October 19, 2009, offered some remarkable findings with regard to cell phone use, including the following:
1. cell phone users walk more slowly and change directions more frequently;
2. cell phone users are less likely to notice an unusual activity, such as a unicycling clown;
3. cell phone use in a vehicle is “particularly problematic”
4. using a cell phone results in worse driving performance than being legally drunk (Strayer, Drews, and Crouch (2006).

District Court finds that no Federal law requires MSA in tort settlements.

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A recent Opinion from the U.S. District Court  in New Jersey, Jeffrey Sipler v. Trans Am Trucking, Civ.No.10-3550 (DRD) states very clearly that “no federal law requires set-aside arrangements in personal injury settlements for future medical expenses.”   The defense tried to impose a confidentiality clause and sort of a Medicare Set-aside (MSA) arrangement on the plaintiff after a settlement agreement was reached.  As is typical, the defendants agreed to pay a sum of money in exchange for a release of all claims.  Later they tried to require the plaintiff agree to certain provisions relating to Medicare, including one that he would not claim reimbursement from Medicare for future accident related medical expenses.  The plaintiff filed motion to enforce settlement.  The court enforced the settlement agreement without regard to future Medicare benefits.  Unfortunately this Opinion was released as “Not for Publication,” but it contains an excellent analysis of the current murky situation with Medicare and tort settlements.

Texting and Driving

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Over the last two years I’ve seen the devastation that can be caused by texting and driving.   People have come to our firm who have lost loved ones or suffered from catastrophic injuries.    the following public service announcement from AT&T shows the consequences of texting and driving.  Stronger laws need to be enacted to help prevent needless tragedies.  Please watch the following video on texting and driving: http://www.youtube.com/watch?feature=player_detailpage&v=IAjwWKIeESc

 

Workers’ Compensation Drug Testing May be Unconstitutional

By | Tennessee Workers' Compensation | No Comments

The Tennessee Attorney General issued an opinion on April 17, 2012, concerning the constitutionality of requiring claimants receiving pain management treatment under the Workers’ Compensation Act to agree in writing to submit to random drug tests.  According to the opinion, “A court would most likely find the drug testing provision . . . constitutionally suspect under the Fourth Amendment of the United States Constitution and Article 1, Section 7 of the Tennessee Constitution.”  Opinion No. 12-47.

New Laws Take Effect in Tennessee

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The Tennessee General Assembly adjourned on May 1, producing 597 new laws, including the following:

 “Loser Pays”: A party who is represented by an attorney can now be required to pay costs and attorney fees, up to $10,000, if a civil proceeding is dismissed for failure to state a claim. There are six exceptions to the rule, including withdrawing the complaint or in good faith amending the complaint to state a claim upon which relief may be granted, and filing a good faith, non-frivolous claim for the express purpose of extending, modifying, or reversing existing precedent. The new law applies to claims filed on or after July 1. 2012. 2012 PC 1046.

 Qualified Protective Orders: Effective July 1, 2012, upon the filing of any “healthcare liability action,” the defendant can now petition the court for a qualified protective order allowing the defendant and their attorneys the right to obtain protected health information during interviews, outside the presence of the plaintiff or his/her attorney, with the patient’s treating “healthcare providers.” 2012 PC 926.

 Trespassers:  An owner of real property owes no duty of care to a trespasser except to refrain from willfully, with negligence so gross as to amount to willfully, intentionally, or wantonly causing an injury after May 10, 2012. The new law also addresses when a possessor of real property is subject to liability for physical injury or death to a child trespasser. 2012 PC 922.

 Pain Management in Workers Compensation Cases:  Effective July 1, 2012, a new law includes within the definition of “utilization review” the prescribing of one or more Schedule II, III, or IV controlled substances for pain management for a period of time exceeding 90 days from the initial prescription of such controlled substances.  As a condition of receiving pain management that requires prescribing of Schedule II, III, or IV controlled substances, an injured or disabled employee may sign a formal written agreement with a physician prescribing the controlled substances acknowledging the conditions under which the injured or disabled employee may continue to be prescribed Schedule II, III, or IV controlled substances and agreeing to comply with such conditions. 2012 PC 1100.

 Interest Rate on Judgments: The interest rate on judgments in Tennessee has been 10%.  A new law sets the interest rate for judgments entered between July 1 and December 31 at 2% less than a formula rate per annum published by the Commissioner of Financial Institutions for June of the same year. For any judgment entered between January 1 and June 30, the interest rate on judgments is 2% less than the formula rate per annum published by the commissioner for December of the prior year. 2012 PC 1043.

Social Security Disability: Mild Mental Retardation

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20 C.F.R. Pt. 404, Subpt. P, App. 1, 12.05.  Section 12.05 provides that the required level of severity for mental retardation is met with “a valid verbal, performance, or full scale IQ of 59 or less.” “The Secretary . . . expressly singled out individuals with Mild Mental Retardation for special treatment in determining entitlement to disability benefits.”  Brown v. Secretary of Health and Human Services, 948 F.2d 268 (6th Cir. 1991).  Per Listing 12.05, the claimant must prove that he exhibited significantly sub average general intellectual functioning with deficits in adaptive functioning that initially manifested during the developmental period (before age 22).  However, “there is a presumption that mental retardation is a condition that remains constant throughout life.”  Hodges v. Barnhart, 276 F.3d 1265 (11th Cir. 2001).  Thus, a claimant “need not present evidence that she manifested deficits in adaptive functioning prior to age 22 when she had offered evidence of low IQ test scores after age 22.” Id.   The requirement that mental retardation or low IQ beginning before age 22 is met when nothing in the record reflects an incident in which the claimant suddenly became mentally retarded.  Lowery v. Sullivan, 979 F.2d 835 (11th Cir. 1992).  In other words, the claimant is entitled to a presumption that his intellectual limitations began before age 22.

If a claimant satisfies the listing criteria he is to be found disabled per se.  Todd v. Apfel, 8 F.Supp.2d 747, 754 (W.D. Tenn. 1998); Johnson v. Sec’y of Health & Human Services, 794 F.2d 1106 (6th Cir. 1986).  A claimant who is not currently engaged in substantial gainful activity who has an impairment that meets or equals a listing is entitled to disability benefits.  Durham v. Apfel, 34 F.Supp.2d 1373, 1381 (N.D. Ga. 1998).  Even if the claimant worked previously with the severe impairment that meets or equals a listing, he/she is still entitled to a finding of disability.  Id.

“A claimant whose impairment meets a listing is disabled when not working, even if he or she worked in the past with the impairments, and even if he or she could return to his or her past work.”  Ambers v. Heckler, 736 F.2d 1572, 1576 (11th Cir. 1985).  As succinctly stated by the 6th Circuit, “if a claimant is not engaged in substantial gainful activity and also validly meets a listing, the Secretary must find claimant disabled without regard to residual work capacity, age, education, or experience.  It is not correct under the regulatory scheme to find that a claimant satisfies a listing but is nonetheless able to work.”  Johnson v. Secretary of Health and Human Services, 794 F.2d 1106 (6th Cir. 1986).

If you need assistance with your disability claim, call The Hamilton Firm.

2012 Workers’ Compensation Legislative Changes (Tennessee)

By | Tennessee Workers' Compensation | No Comments

The maximum weekly benefit rate for temporary disability benefits for injuries occurring from July 1, 2012 through June 30, 2013 is $886.60.
The maximum weekly benefit rate for permanent benefits for injuries occurring July 1, 2012 through June 30, 2013 is $806.00.
The Legislature also added provisions with regard to pain management. Now, if a claimant is referred for pain management, the panel must include physicians within 175 miles from the employee’s residence or place of employment. Moreover, the employee is not entitled to a second opinion with regard to pain management, and the employer may use utilization review with regard to pain medication. The legislation further provides that if the claimant violates the terms of the prescription medication agreement with the physician more than once, the claimant shall not be entitled to receive pain management through workers’ compensation.
Venue: A suit may be filed in the county in which the employee resided at the time of the injury or in the county where the injury occurred.

Physical Injury can cause compensable mental injury

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In Norwood v. Maytag Corp., (Tenn. W.C. Panel 4/30/2012), the employee injured his neck while working, which resulted in a “mood disorder . . . with major depressive-like episode.”  Basically, the neck injury aggravated the employee’s pre-existing mental condition.  The reviewing court upheld the trial court’s ruling that the employee was 95% permanently disabled.

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