Les Hall

Applicant Les Hall settled his industrial back injury claim by way of a $35,000 Compromise and Release, signing the papers on November 13, 2001. After the C&R was submitted but before approval, defendant's insurer, Legion Insurance Company, was placed into rehabilitation by the Commonwealth Court of Pennsylvania on March 28, 2002. Defendant sought to withdraw from the C&R, arguing a mutual mistake of fact existed regarding its ability to pay the lump sum, and challenged the OAC&R's penalty/interest provision on due process grounds. The Board affirmed the OAC&R, finding defendant provided no evidence the Rehabilitator could not pay the settlement and that a party cannot unilaterally withdraw from a fully executed C&R. However, the Board struck the provision awarding penalties and interest if payment was not made within 25 days, finding it violated due process under Labor Code section 5814 and improperly re-wrote the parties' agreement. The Board also dismissed defendant's alternative petition for removal as inappropriate for a final dispositive order.