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D'AMICO v. Marina Inn & Yacht Harbor, Inc.

Citation: 444 So. 2d 1038Docket: AT-75

Court: District Court of Appeal of Florida; January 17, 1984; Florida; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by a claimant seeking to set aside a lump sum settlement agreement with an insurance carrier. The primary legal issue revolves around whether the claimant had reached maximum medical improvement (MMI) six months prior to the settlement, as required by statute. The claimant, who sustained a herniated disc, initially received benefits but faced cessation due to an alleged refusal of surgery. Upon hiring legal representation, the claimant's benefits were reinstated, and he later agreed to a settlement out of frustration. However, subsequent legal counsel filed to void the settlement on the basis of non-compliance with the statutory requirement of a six-month deferment post-MMI. The court found that the evidence did not support the Deputy Commissioner's determination that MMI was achieved within the required timeframe, rendering the settlement voidable. Consequently, the court reversed the order denying the motion to set aside the settlement and remanded the case for further proceedings. The claimant's lack of representation at the time of settlement and issues with medical documentation were also noted.

Legal Issues Addressed

Lump Sum Settlement Modification Under F.S. 440.20(12)(a)(b)

Application: The court found that the settlement was voidable due to non-compliance with the statutory requirement of a six-month deferment after reaching maximum medical improvement (MMI).

Reasoning: Consequently, the settlement agreement is deemed voidable due to non-compliance with the statutory requirement mandating a six-month deferment after reaching MMI.

Maximum Medical Improvement (MMI) Determination

Application: The court determined that maximum medical improvement had not been reached six months prior to the settlement, which invalidated the Deputy Commissioner's approval of the settlement.

Reasoning: The record does not support Deputy Branham's determination that the claimant met the statutory condition of maximum medical improvement (MMI) prior to the settlement.

Statutory Compliance for Settlements

Application: The court highlighted the mandatory nature of the statute requiring a six-month period post-MMI before a settlement can be valid, which was not adhered to in this case.

Reasoning: The law generally prohibits modification of lump sum settlements, the court agreed that the issue of MMI was subject to review, citing mandatory language in the statute requiring a six-month period post-MMI for such settlements to be valid.

Statutory Time Limit for Setting Aside Settlements

Application: The claimant's motion to set aside the settlement was timely, as it was filed within two years of the approval order, making the settlement voidable.

Reasoning: As the claim to set aside the settlement was filed within two years of the approval order, the applicability of F.S. 440.19(2)(a) is not considered.