8.01-424.1 - Settlement of third-party action; deemed consent by employer. - Virginia Statutes

§ 8.01-424.1. Settlement of third-party action; deemed consent by employer.

In any action or claim for damages by an employee, his personalrepresentative, or other person against any person other than the employer,in which the employer has an interest pursuant to § 65.2-309, where theemployer fails to consent to an offer of settlement acceptable to theemployee, his personal representative or other person, such person maypetition the court where the action is pending for approval of thesettlement. Where no action is pending, or such action is pending in a stateother than Virginia, the petition may be filed in any circuit court in whichvenue will lie as to the employee pursuant to § 8.01-262. The petition shallstate the compromise, its terms, and the reason therefor. The court in whichsuch petition is filed shall require the convening of the parties in interestin person or by an authorized representative. The parties in interest shallbe deemed convened if twenty-one days notice of the hearing and proposedcompromise was served pursuant to §§ 8.01-296, 8.01-299, 8.01-300, 8.01-301,or Rule 1:12 of the Rules of the Supreme Court of Virginia, as applicable. Inthe case of an insured employer, service shall also be made on the workerscompensation insurer's registered agent or counsel. During the twenty-one daynotice period, the person making the settlement offer to the employee shallmake himself reasonably available to answer questions under oath by theemployee, employer, or employer's workers compensation insurer concerningmatters relating to such person's financial condition that are known orreasonably available to such person.

If the court determines that the settlement is fair and just to the partiesin interest, it shall approve such settlement. In no event shall the courthave jurisdiction to reduce or otherwise compromise the subrogation interestcreated pursuant to § 65.2-309. The employer, if aggrieved by the court'sdecision, may appeal. Should the employer's appeal be denied or decidedadversely to the employer, the employer shall pay interest at the judgmentrate on the full settlement amount until the date of the denial of the appealor date the final adverse decision is rendered against the employer. Shouldthe settlement include periodic payments into the future, the value of thesettlement amount, discounted to present value, shall be determined incalculating interest due from the employer. Once the decision is final andall appeals, if any, have been exhausted, and because the employer'ssubrogation interest has not been compromised, the decision approving thesettlement shall be deemed consent to the settlement by the employer.

(2002, c. 751.)