Shaw v. Dover Furniture Mfg. Co

In Shaw v. Dover Furniture Mfg. Co., 700 So. 2d 1382 (Ala. Civ. App. 1997), the Court of Civil Appeals explained: "There are two circumstances under which a settlement agreement in a workers' compensation dispute must be approved by the circuit judge: when the worker agrees to accept an amount less than provided for by statute, 25-5-56, and when the worker agrees to accept a lump sum payment in lieu of periodic payments of compensation, 25-5-83." (700 So. 2d at 1384.) When a "worker agrees to accept an amount less than provided for by statute," Shaw, the trial court may not approve the settlement unless it "determines that it is for the best interest of the employee." Ala. Code 1975, 25-5-56. Similarly, when a "worker agrees to accept a lump sum payment in lieu of periodic payments," Shaw, the trial court may not approve the commutation of compensation to a lump-sum payment unless it "is satisfied that it is in the best interest of the employee." Ala. Code 1975, 25-5-83. Furthermore, "the better practice is for the trial judge to make a specific finding on the record that the settlement is in the employee's best interest," and, "if the trial judge does not specifically make such a finding, then the record must affirmatively show that the settlement is in the employee's best interest." (Shaw, 700 So. 2d at 1385.)