To say that the Commonwealth Court case of DePue v. Workers’ Compensation Appeals Board (N. Paone Construction) is troubling is a vast understatement. The court sets a very dangerous precedent regarding the finality of the compromise and release agreement (C&R), which warrants great attention on the part of the claimant’s practitioner when preparing the agreement. Moreover, it may have a chilling effect on settlements, given the great specificity of the settlement language that the decision imposes.
A C&R agreement under Section 449 of the state Workers’ Compensation Act permits the parties to enter into an agreement that finally resolves any and all issues raised in a workers’ compensation case, including future medical treatment. While increasingly rare, the parties can choose to "leave medicals open" by simply agreeing to a C&R of indemnity only. DePue presents a situation where the parties settled only the indemnity portion of the claim.
