People who are hurt while they are working generally can recover workers’ compensation benefits pursuant to the Massachusetts Workers’ Compensation Act (the Act). In some instances, they may be able to recover accidental disability retirement (ADR) benefits as well. The receipt of ADR benefits may impact their right to workers’ compensation benefits, however, and it is important for them to understand the implications of accepting such additional benefits. As discussed in a recent Massachusetts case, rescinding agreements for ADR benefits can be challenging. If you sustained injuries at work, you could be owed benefits, and you should talk to a Massachusetts workers’ compensation lawyer as soon as possible.
History of the Case
It is alleged that the plaintiff, a correction officer, had sustained a workplace injury in September 1990 and was receiving workers’ compensation benefits from the defendant, his self-insured employer, due to a permanent disability. Subsequently, he was also granted accidental disability retirement (ADR) benefits by the State Board of Retirement. His ADR benefits were offset by the concurrent receipt of workers’ compensation benefits, resulting in a combined monthly sum of $4,340.28. However, in June 2009, a lump sum settlement was reached, terminating his workers’ compensation claim in exchange for a one-time payment of $10,000. Subsequently, the plaintiff became eligible solely for ADR benefits, which amounted to $2,417.79 per month. This substantial reduction was attributed to differences in the calculation methods employed by the workers’ compensation and ADR systems. The plaintiff’s attorney had believed the settlement to be advantageous, assuming higher ADR benefits, without considering the loss of the supplemental workers’ compensation benefit.
It is reported that the settlement necessitated approval from an administrative judge, representing that it was in the plaintiff’s best interest under the Act. Both the plaintiff’s attorney and the defendant’s attorney jointly presented the settlement as such. At the time, neither attorney realized that the plaintiff’s ADR benefits would be significantly lower than his previous workers’ compensation benefits. The plaintiff later sought rescission, alleging a mutual mistake of fact, asserting that his attorney’s misunderstanding of the benefits constituted such a mistake. Conversely, the defendant argued that rescission could only occur based on mutual mistake or fraud. The plaintiff moved for summary judgment, which the trial court granted. The defendant appealed. Continue reading →