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McKinney v. Workers' Compensation Appeal Board2/25/2002
Wayne McKinney (Claimant) appeals from the decision of the Workers' Compensation Appeal Board (Board) affirming the Workers' Compensation Judge's (WCJ) order dismissing with prejudice Claimant's Reinstatement Petition because Claimant's original claim was previously settled by a Compromise and Release Agreement (C&R; between Claimant and AJON Contractors (Employer). We reverse.
On September 29, 1995, Claimant was hit by a car while working for Employer. He filed a Claim Petition against Employer but Claimant later amended it as a Petition for Compromise and Release. The C&R; drafted by Claimant's counsel, was executed by the parties and approved by the WCJ on January 21, 1998. Several months later, on June 10, 1998, Claimant filed a Petition to Reinstate Benefits alleging that his 1995 work-related injury recurred with a resulting loss of earnings. A hearing was held during which Employer moved for dismissal of Claimant's Reinstatement Petition because the C&R;precluded him from filing any subsequent petitions for benefits. Following the hearing, the WCJ dismissed Claimant's Petition with prejudice on the basis that the C&R;estopped Claimant from pursuing his Petition since the claim was previously settled. The Board affirmed this decision.
Claimant's sole legal issue before us is whether the C&R;precluded him from filing his claim for benefits when the C&R;does not expressly state that Claimant was waiving his future rights under the Workers' Compensation Act, Act of June 2, 1915, P.L. 736, as amended, 77 P.S. §§ 1-1041.4; 2501-2606. Claimant requests that this Court interpret the C&R;to permit future claims.
Section 449 of the Workers' Compensation Act, which governs the formation of C&R;agreements, states, in pertinent part, the following:
(a) Nothing in this act shall impair the right of the parties interested to compromise and release, subject to the provisions herein contained, any and all liability which is claimed to exist under this act on account of injury or death.
(b) Upon or after filing a petition, the employer or insurer may submit the proposed compromise and release by stipulation signed by both parties to the for approval. The shall consider the petition and the proposed agreement in open hearing and shall render a decision. The shall not approve any compromise and release agreement unless he first determines that the claimant understands the full legal significance of the agreement .... 77 P.S. § 1000.5(a), (b) (emphasis added).
This language is to be strictly construed. See Rissmiller v. Workers' Compensation Appeal Board (Warminster Township), 768 A.2d 1212, 1213 (Pa. Cmwlth. 2001). We note that the C&R;before us does not comply with the statutory requirements.
Neither party, however, has raised the issue of enforceability and we cannot do so sua sponte. The WCJ previously approved the C&R;and that order is not before us. Instead, we are asked to interpret the language of the C&R;and determine its scope. First, we must determine whether the C&R;is ambiguous with regard to future benefits.
The pertinent terms of the C&R;are:
4. The work-related injury resulted in a lower back sprain and strain. The Claimant was fully recovered from his work-related injury as of April 5, 1997.
...
6. The Claimant became totally disabled on February 25, 1996. As of September 9, 1996, his condition changed. Between September 9, 1996 and January 31, 1997, he suffered only a partial loss of earnings. As of January 31, 1997, the Claimant experienced no loss of earnings.
7. As of this dat
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