Michael Draine v. S & ME, Inc, et al

In this workers’ compensation case, a Hawkins County employee sustained a compensable injury in September 2000. His claim was settled in July 2003. The settlement, which was approved by the Department of Labor and Workforce Development, provided that the employer would continue to provide medical care for the injury in accordance with the workers’ compensation law. In 2009, the employee and his employer’s insurer entered into an agreement closing future medical benefits in exchange for a lump sum payment, subject to approval by Medicare. This settlement closing future medical benefits was approved by the Circuit Court for Knox County by agreement of the parties. Medicare declined to approve the proposed agreement and suggested an alternate, much larger, lump sum payment. The employee filed a petition in the Circuit Court for Sullivan County to enforce the settlement agreement as amended by Medicare. The employer and insurer moved to dismiss, based on improper venue. That motion was denied. After a series of non-evidentiary hearings, the trial court ordered the employer’s insurer to make a lump sum payment in excess of $500,000. The employer and insurer have appealed, contending that the trial court erred by denying their motion to dismiss, and by ordering the $500,000 payment. Pursuant to Tennessee Supreme Court Rule 51, the appeal has been referred to the Special Workers’ Compensation Appeals Panel for a hearing and a report of findings of fact and conclusions of law. We conclude that the trial court erred by denying the motion to dismiss, and therefore reverse.