"Streamlining Settlement Approval for Workers’ Compensation Claims"

Birmingham partner Amanda Goozée authored an article published by Business Alabama on April 1, 2022 discussing Alabama’s permanent adoption of Alabama Rule of Judicial Administration 47, which allows parties to move settlement agreements to closure much faster and with reduced legal expenses in workers’ compensation claims.

On March 18, 2020 and in light of the Covid-19 pandemic, the Alabama Supreme Court entered an administrative order regarding the prosecution of workers’ compensation cases during the suspension of in-person proceedings. In addition to allowing hearings to be held over the phone or videoconferencing, the Administrative Order stated that any workers’ comp settlement could be approved by an ombudsman and that such agreement would result in the dismissal of the claim pending in circuit court.

While the Administrative Order was written to be temporary, it was extended multiple times as the pandemic continued. The results benefited employers, insurers and courts by allowing claims to be resolved and moved off the books without delay in a more streamlined manner that didn’t require travel. “There was no more waiting to get on the judge’s already busy and backed up docket,” Goozée said. “An attorney could sit at his desk and suddenly have five settlement agreements approved back-to-back-to-back over the phone with one ombudsman. What used to take an entire day or weeks to coordinate could suddenly be handled in mere minutes.”

In addition to reduced time and the elimination travel costs to in-person hearings, judges around the state said the process allowed their dockets to clear more quickly and efficiently. Rule 47 was finalized and adopted on December 30, 2021 to make the improvements from the Administrative Order permanent, which will allow the continuation of these time and financial benefits.

For the full article, please click here.