Dickemann v. Costco Wholesale Corporation, Inc.

No. ED 105266, 2017 WL 2256732 (Mo. Ct. App. May 23, 2017)

Factual Background:

Claimant and Employer reached a settlement valued at approximately $590,000.00 in 2014; neither party filed an application for review and the award became final in 2014. Then, in 2016, the claimant and employer voluntarily entered into another settlement and agreement to commute the award in exchange for a lump sum payment of $400,000.00. Claimant voluntarily accepted these terms.

Commission Decision:

This case is currently under review by the Supreme Court of Missouri.

The Commission issued an order denying approval of the agreement without prejudice. They reached this decision because the agreement did not contain allegations that, if true, would support a commutation of the award pursuant to 287.530. 

Analysis/Holding:

Section 287.530 sets the guidelines for when and how the Commission or Division may grant a commutation. Claimant relied heavily on Western District cases which said, assuming there is no undue influence or fraud, the claimant understood his rights, benefits, and consequences, and voluntarily entered into the agreement, then it should be approved. The Eastern District disagreed and found that interpreting section 287.530 using strict construction means that the legislature meant for commutations to be allowed only in unusual circumstances. No unusual circumstances were found here.

Therefore, the Appeals Court affirmed the Commission decision. 

The Takeaway:

Commutations under section 287.530 are intended only for unusual circumstances, and the factual support for such circumstances must be alleged in the agreement itself.