Item F12 BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: 11-19-2014 Division: Employee Services
Bulk Item: Yes X No Department: -Workers" Compensation Office
Staff Contact/Phone#: Meri-de J. Mercado x 4451
AGENDA ITEM WORDING: Approval of a Workers' Compensation Settlement in the amount of
One hundred thousand, eight hundred sixty dollars, $100,860.00 (inclusive of attorney fees) for JCC
Case No.: 13-012050RDM,
ITEM BACKGROUND: Claimant sustained a work related injury on May 10, 2013. State mediation
was held October 30, 2014. Original demand for settlement was $400,000. Settlement was negotiated
between the claimant and claimant's attorney, adjuster, department staff and assistant county attorney.
Both parties agreed to immediate resignation, liability release for the County from any past or future
benefits and/or cost compensable under Florida workers' compensation law and $100,000 inclusive of
attorney's fees plus cost of$860, for a total amount of$100,860.010, contingent upon BOCC approval
and JCC(judge of compensation claims) approval.
PREVIOUS RELEVANT B4OCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval
TOTAL COST: $100,860.00 INDIRECT'COST: BUDGETED: Yes
DIFFERENTIAL OF LOCAL PREFERENCE:
Internal Service Fund
COST TO COUNTY: $1001860.00 SOURCE OF FUNDS: Primarily Ad Valorum
REVENUE PRODUCING: Yes— No X AMOUNT PER MONTH Year
APPROVED BY: County Atty_ OMB/Purchasing,— Risk Management
DOCUMENTATION: Included X Not Required_
DISPOSITION: AGENDA ITEM#
Revised 7/09
County of Monroe BOARD OF COUNTY COMMISSIONERS
The Florida Keys Mayor Sylvia J.Murphy,District 5,
Mayor Pro Tem,Danny L. Kolhage,District I
George Neugent, District 2
Employee Services Division Heather Carruthers,District 3
Workers,Compensation Met David Rice, District 4
1100 Simonton Street,Suite 2-268
Key West,Florida 33040
TO., Board Of County Commissioners
FROM: Teresa Agular,
Employee Services Director
DATE: October 31,2014
SUBJ. Workers Compensation Settlement
JCC Case No,13-012050RDM
This item requests approval for settlement of a workers'compensation claim involving a Monroe County employee
with a date of accident May 10,2013. The claimant alleged an injury to his back. The claimant filed a total of four
petitions for benefits associated with this injury,
The County held a state mediation on October 30,2014. The County was represented by its workers'compensation
attorney. Also in attendance were staff and a representative from the County Attorney's Office. The claimant's
attorney made an initial demand of S400,000 plus attorneys' fees and costs. Eventually,both parties agreed to a
$100,000 settlement(inclusive of attorneys' fees)plus$860 in costs,contingent upon your approval. The settlement
included the claimant's immediate resignation and a release of the County for any further liability for past or future
compensation benefits,past and future medical benefits,rehabilitation benefits,temporary and permanent disability
benefits,any retraining costs,death benefits,attorneys'fees and'costs,and any other benefits compensable under
Florida workers' compensation law.The claimant will continue to receive his indemnity benefits and medical care on
a palliative basis only until the Judge of Compensation approves the settlement.
The claimant had filed a petition alleging permanent and total disability(PTD),and seeking treatment not only for the
back injury but also for psychological treatment. The claimant underwent back surgery in 2'0 14,which the claimant
alleged provided no relief The cost to the County of the back surgery was$96,000. To date,the County has spent
$288,227.71 on this case.
It has been the County's position that the claimant was not permanently and totaled disabled. The County also
disputed the severity of the claimant's injuries and the need for future medical treatment requested by the claimant.
However,given the claimant's age:(below 40),and the nature of the body part involved(back),the County could face
a present value liability well in excess of$600,000 if the claimant were to prevail,and a future value in excess of
$1,160,000,most of which would be a payment to compensate for the PTD,,but in addition there could be additional
liability for future medical benefits,attorneys' fees andcosts.
The matter was set for trial before an administrative law judge on December 19,2014. Although the County believes
that it would prevail'on the PTD portion of the claim,a settlement of$100,860 inclusive of attorneys' fees and the
liability release, allows us to manage our risk as to the PTD claim and also to limit our liability as to future medical
benefits,particularly the possibility of future back surgery. Therefore,it is the recommendation of the County's
workers compensation attorney,the County Attorney's office,and staff,to approve the proposed settlement in the
amount of S 100,860.00.The settlement amount represents approximately 25%of the claimant's opening demand, 16%
of the total exposure present value and 10%of future value.
If you have any questions,please do not hesitate to contact me.