California: Compromise and Release; Mutual Mistake; Medicare Set-Aside

A recent noteworthy panel decision involves C&R, mutual mistake and Medicare set-aside. Here’s our headnote for the Harrison decision:

Compromise and Release Agreements—Rescission—Mutual Mistake—WCAB, denying reconsideration, affirmed WCJ’s finding of good cause to set aside 1/8/2020 Order Approving Compromise and Release agreement settling applicant’s claim for cumulative orthopedic injury, based on mutual mistake, when Compromise and Release agreement contained zero-dollar Medicare Set-Aside, resulting in Center for Medicare Services (CMS) charging applicant for medical treatment, which applicant paid, and WCAB found there was mutual mistaken belief by parties that zero-dollar Medicare Set-Aside did not have to be submitted to CMS for approval, and further determined there was mutual mistake by parties that agreed medical examiner found no compensable injury, which formed premise of entire settlement agreement.

Harrison v. Canyon Springs Pools and Spas, Inc., 2021 Cal. Wrk. Comp. P.D. LEXIS 234.

REMINDER: Panel decisions are not binding precedent.