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Pudlish v. Pudlish

Because the husband and his employer agreed to settle his workers compensation claim after the husband and wife separated, those settlement benefits can not be included in the marital estate; the trial court erred by including the husbands compromise and release agreement award as a marital asset subject to equitable distribution.

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� 1 This is an appeal from a trial court’s order that included, as marital property subject to equitable distribution, the benefits received pursuant to a compromise and release agreement that resolved a workers’ compensation specific loss claim. For the reasons that follow, we vacate and remand.

� 2 David A. Pudlish (Husband) and Sandra L. Pudlish (Wife) were married on June 28, 1986 and separated on June 11, 1998. On September 16, 1997, nine months before separation, Husband sustained a work-related injury to his right eye. He missed 14 days of work for which he received no compensation. At some point thereafter, Husband filed a workers’ compensation claim petition seeking specific loss benefits for the permanent loss of the use of his right eye for all practical intents and purposes.*fn1

Because Husband’s employer denied the claim, litigation followed with both Husband and employer providing expert medical testimony by deposition. The first of four hearings on the matter was held on May 14, 1998, with the last hearing held on May 27, 1999, at which time Husband and employer presented a compromise and release agreement (C&R) intended to settle the specific loss claim. On June 16, 1999, one year after Husband and Wife separated, the C&R was approved by the workers’ compensation judge, resolving Husband’s claim for the net sum of $85,000.*fn2

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