Stout v. State Compensation Fund

In Stout v. State Compensation Fund, 197 Ariz. 238, 3 P. 3d 1158 (App. 2000) the Fund refused to approve the proposal of the third-party tortfeasor to settle with the deceased employee's widow for policy limits. Among the issues raised on appeal, the widow asserted that Aitkin should apply to all cases resolved by settlement, regardless of whether the employer's fault is judicially determined. The Court rejected this assertion, finding that the "considerations that led to the holding of Aitken are not present in a settlement the one presented here." Stout, 197 Ariz. 238, P14, 3 P. 3d 1158, P14. The court observed that, in the proposed settlement, "there was no reduction of the settlement amount for employer fault because the amount of damages was not determined at trial nor was there any judicial determination of employer fault to reduce those damages." Id.