IN RE TOVAR, W.C. No. 4-401-628 (09/05/00)


IN THE MATTER OF THE CLAIM OF JOSEPH M. TOVAR, Claimant, v. STEELE’S MARKET, INC., Employer, and COLORADO COMPENSATION INSURANCE AUTHORITY, d/b/a PINNACOL ASSURANCE, Insurer, Respondents.

W.C. No. 4-401-628Industrial Claim Appeals Office.
September 5, 2000

FINAL ORDER
The claimant seeks review of an order of Administrative Law Judge Snider (ALJ) which granted the respondents’ Motion to Strike Issue of Penalties. We dismiss the appeal because it is moot.

In February 2000 the claimant filed an application for hearing on the issues of permanent partial and permanent total disability benefits, disfigurement, and medical benefits. The claimant also listed the issue of penalties based on the respondents’ failure to admit liability for disfigurement benefits, and their failure to admit liability for the drug Paxil as recommended by the independent medical examination physician. The respondents then filed the Motion to Strike Issue of Penalties arguing they could not be penalized because there was no statute, rule, or order requiring them to admit liability for disfigurement benefits or particular medical benefits. On March 9, 2000, the ALJ entered an order striking the issue of penalties based on the respondents’ failure to admit liability for disfigurement and medical benefits. The ALJ stated the issues were stricken “with prejudice.” The claimant filed a petition to review the March 9 order, and also requested specific findings of fact and conclusions of law. In an order dated April 11, 2000, the ALJ denied the request for specific findings.

The claimant failed to file a brief in support of the petition to review, but the respondents filed a brief addressing the merits of the appeal. The ALJ then transmitted the file, and we received it on July 24, 2000.

Our review of the file indicates that on June 6, 2000, a Prehearing Administrative Law Judge entered an order approving a settlement agreement signed by the claimant, his attorney, and counsel for the respondents. The settlement agreement provides inter alia, that the claimant “rejects, waives, and forever gives up the right to claim any benefits to which the Claimant might be entitled for” various benefits, including “all penalties, interest, costs, and attorneys’ fees.” (Settlement Agreement paragraph 7). The settlement also provides the claimant forever “waives, releases and relinquishes any and all rights he may have against Respondents” for “any claim in relation to the handling or processing of these claims by Respondents, their employees, agents or assigns.” (Settlement Agreement paragraph 9).

In our view, the settlement renders the claimant’s appeal moot. A case becomes moot if the relief requested would have no practical legal effect on an existing controversy. An appellate forum need not render a decision if events subsequent to the appeal render the issue moot. Brown v. Colorado Department of Corrections, 915 P.2d 1312 (Colo. 1996).

Section 8-43-204(1), C.R.S. 2000, provides that an “injured employee may settle all or part of any claim for compensation, benefits, penalties, or interest.” Here, the settlement agreement, which was properly approved, expressly states the claimant agrees to surrender any claims for penalties for other relief based on the respondents’ handling of the workers’ compensation claim. Consequently, the issue presented by the claimant’s appeal of the ALJ’s order became moot because of the subsequent settlement.

IT IS THEREFORE ORDERED that the claimant’s petition to review the ALJ’s order dated March 9, 2000, is dismissed with prejudice.

INDUSTRIAL CLAIM APPEALS PANEL

____________________________________ David Cain
____________________________________ Bill Whitacre

NOTICE

This Order is final unless an action to modify or vacate this Order is commenced in the Colorado Court of Appeals, 2 East 14th Avenue, Denver, CO 80203, by filing a petition for review with the Court, within twenty (20) days after the date this Order is mailed, pursuant to § 8-43-301(10) and § 8-43-307, C.R.S. 1999. The appealing party must serve a copy of the petition upon all other parties, including the Industrial Claim Appeals Office, which may be served by mail at 1515 Arapahoe, Tower 3, Suite 350, Denver, CO 80202.

Copies of this decision were mailed September 5, 2000 to the following parties:

Joseph M. Tovar, 2518 Dorset Court, Ft. Collins, CO 80526

Steele’s Market, Inc., 200 W. Foothills Pkwy., Ft. Collins, CO 80525-2626

Curt Kriksciun, Esq., Colorado Compensation Insurance Authority dba Pinnacol Assurance — Interagency Mail (For Respondents)

Richard K. Blundell, Esq., and Lauren Cabot Oray, Esq., 1024 8th St., Greeley, CO 80631 (For Claimant)

Thomas M. Stern, Esq., 600 17th St., #1600N, Denver, CO 80202

BY: A. Pendroy