If you sign a settlement agreement, you might feel relieved that you no longer have to go to trial. After all, settlements are generally thought to save you the time and expense of going to trial. But what happens if the other side fails to pay you the settlement funds by the terms of the settlement agreement?
Rapheal Guillory was injured while working at R&R Construction. He initially received workers’ compensation benefits, but they were eventually terminated. After his benefits were terminated, he filed a lawsuit against R&R, seeking his benefits, penalties, and attorney fees. Before the case went to trial, the parties settled. Under the settlement agreement, R&R agreed to pay Guillory a lump sum payment for the settlement amount by a set date. The workers’ compensation judge approved the settlement agreement.
After the agreed-upon date for R&R to pay Guillory, R&R’s attorney delivered to Guillory’s attorney two checks, a release, and dismissal. However, the checks included language that Guillory claimed imposed improper conditions on receiving the settlement funds that were not part of their settlement agreement. Later, R&R paid the required expenses, but the check also included conditional language.