Oak Park, CA asked in Workers' Compensation, Civil Litigation and Personal Injury for California

Q: Explanation needed for initialing page 7 of a C&R in a workers' comp case with concurrent wrongful termination suit.

I'm involved in a workers' compensation case that includes a Compromise and Release (C&R) agreement. On page 7 of the agreement, I'm asked to initial what applies in the settlement. I also have an ongoing civil lawsuit against my employer for wrongful termination, and I'm concerned about potentially jeopardizing my civil case by initialing. Can someone explain what I might be giving up or affecting in terms of rights or claims by initialing?

3 Lawyer Answers

A: Each item listed on page 7, is an issue that you are agreeing to settle. So for example, if permanent disability is at issue in your case, and both parties initial that line, then the issue of permanent disability is settled upon approval of the compromise and release. The best practice would be to get guidance from both your workers' comp attorney and your wrongful termination attorney to ensure that Compromise and Release is not going to affect the wrongful termination.

Dennis Dascanio
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Answered

A: Dear concerned,

You are correct to be concerned that you do not prejudice any other claim you have against your employer. Initializing the boxes on page 7 of the compromise and release does not limit your ability to pursue a civil claim, however it can affect other discriminatory claims that you may have against your employer. It is highly recommended that you consult with your Employment Law Attorneys and seek guidance on how this can affect your current civil claim for wrongful termination.

Sincerely,

Dennis Dascanio

James L. Arrasmith
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Answered

A: Page 7 of a Workers' Compensation Compromise and Release (C&R) agreement typically contains critical language about the scope of your release - what claims you're giving up in exchange for the settlement amount. Your concern about how this might impact your separate wrongful termination lawsuit is valid, as the wording on this page could potentially affect your ability to pursue other claims against your employer.

The relationship between workers' compensation settlements and civil lawsuits can be complex. In many states, workers' compensation settlements include language releasing the employer from all claims "arising out of employment," which could potentially be interpreted broadly. However, wrongful termination claims are generally considered separate from workplace injury claims. What matters most is the specific language you're being asked to initial - whether it explicitly mentions releasing employment-related civil claims or is strictly limited to injury claims.

Before initialing anything, you would benefit from having your civil attorney review the C&R agreement. Your attorney can advise whether the language needs modification to explicitly preserve your wrongful termination claim. In some cases, your attorney might recommend adding specific language stating that the settlement does not affect your pending civil lawsuit. This precaution helps protect your rights across both cases and prevents unintentional waiver of important claims.

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