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Member, Beacon International Group, Ltd.
COLUMBUS, Ohio—A self-insured employer is not necessarily entitled to reimbursement for workers compensation benefits when those payments subsequently are found to be unwarranted, Ohio’s Supreme Court has ruled.
The ruling earlier this week in Dillard Department Stores vs. Ryan resulted from a 1999 accident involving department store worker Pamela Scott, who received workers comp benefits but eventually settled her claim with Dillard for $15,000 and a release agreement. The ruling upheld a lower court decision.
In Ohio, a self-insured employer can generally obtain reimbursement from a state surplus fund for workers comp payments that are later found to be unwarranted through administrative or judicial proceedings.
But in this case, the court held that reimbursement is not required when the action is dismissed as a result of a settlement between the employer and employee, even if the employee was not permitted to receive workers compensation benefits.