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An injured workman, Walters, sought permanent total disability compensation from his employer's insurer, but his petition was dismissed by the circuit court under section 14 of the workmen's compensation statute. Walters had previously settled a damages claim against a third party, Choctaw Culvert and Machinery Company, by accepting $2500 for a covenant not to sue. The core legal question was whether this payment constituted 'collection of damages' from a third party, thereby barring Walters' right to workers' compensation from his employer. The court ruled that a substantial payment received from a third party in satisfaction of liability extinguishes the worker's right to compensation, regardless of whether it was a formal release or a covenant not to sue, and without needing judicial proof of the third party's actual liability. Consequently, the judgment sustaining the demurrer was affirmed.
Walters v. Eagle Indemnity Co. is a workers' compensation case decided in Tennessee Supreme Court. This case addresses legal issues related to compensation claims, benefits, and court rulings.
It is commonly referenced in legal research involving workers' compensation laws in Tennessee Supreme Court.
Full Decision Text1 Pages
An injured workman, Walters, sought permanent total disability compensation from his employer's insurer, but his petition was dismissed by the circuit court under section 14 of the workmen's compensation statute. Walters had previously settled a damages claim against a third party, Choctaw Culvert and Machinery Company, by accepting $2500 for a covenant not to sue. The core legal question was whether this payment constituted 'collection of damages' from a third party, thereby barring Walters' right to workers' compensation from his employer. The court ruled that a substantial payment received from a third party in satisfaction of liability extinguishes the worker's right to compensation, regardless of whether it was a formal release or a covenant not to sue, and without needing judicial proof of the third party's actual liability. Consequently, the judgment sustaining the demurrer was affirmed.
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