The interested parties may settle all matters of benefits, whether involving compensation, medical payments, or rehabilitation, and all questions arising under this article and Article 4 of this chapter between themselves, and every settlement shall be in an amount the same as the amounts or benefits stipulated in this article. No settlement for an amount less than the amounts or benefits stipulated in this article shall be valid for any purpose, unless a judge of the court where the claim for compensation under this chapter is entitled to be made, or upon the written consent of the parties, a judge of the court determines that it is for the best interest of the employee or the employee’s dependent to accept a lesser sum and approves the settlement. The court shall not approve any settlement unless and until it has first made inquiry into the bona fides of a claimant’s claim and the liability of the defendant; and if deemed advisable, the court may hold a hearing thereon. Settlements made may be vacated for fraud, undue influence, or coercion, upon application made to the judge approving the settlement at any time not later than six months after the date of settlement. Upon settlements being approved, judgment shall be entered thereon and duly entered on the records of the court in the same manner and have the same effect as other judgments or as an award if the settlement is not for a lump sum. All moneys voluntarily paid by the employer or insurance carrier to an injured employee in advance of agreement or award shall be treated as advance payments on account of the compensation. In order to encourage advance payments, it is expressly provided that the payments shall not be construed as an admission of liability but shall be without prejudice.
(Code 1923, §7550; Acts 1939, No. 661, p. 1036, §3; Code 1940, T. 26, §278; Acts 1992, No. 92-537, p. 1082, §16.)
Notes of Decisions
Hedgemon v. United Parcel Serv., Inc., 832 So. 2d 656 (Ala. Civ. App. 2002).
· cites it 11× “, Ala.Code 1975, § 25-5-56, that expressly reflects a policy of encouraging voluntary payments by employers.”
VI Prewett & Son, Inc. v. Brown, 896 So. 2d 564 (Ala. Civ. App. 2004).
· cites it 8× “In pertinent part, Ala.Code 1975, § 25-5-56, states, "`All moneys voluntarily paid by the employer or insurance carrier to an injured employee in advance of agreement or award shall be treated as advance payments on account of the compensation.”
Ex Parte Sunbelt Transp., Inc., 23 So. 3d 1138 (Ala. Civ. App. 2009).
· cites it 6× “See Ala.Code 1975, § 25-5-56. The employer asserted that the controversy over the employee's entitlement to surgery at the employer's expense could not be resolved by a motion to compel that was not in compliance with the procedure set out in Publix.”
Francis Powell Enter., Inc. v. Andrews, 21 So. 3d 726 (Ala. Civ. App. 2009).
· cites it 3× “Code 1975; and (6) that, in determining Powell’s liability, the trial court erred in considering Powell’s voluntary payment of compensation benefits to Andrews, in violation of § 25-5-56, Ala.Code 1975. Powell raises no issue with respect to the trial court’s amended finding…”
Total Fire Prot., Inc. v. Jean, 160 So. 3d 795 (Ala. Civ. App. 2014).
· cites it 3× “TFP argues that the trial court had no basis for setting aside the June 29, 2006, order. We disagree. Once approved by the trial court, the September 29, 2005, settlement became a binding judgment with the same effect as any other final judgment.”
Ex Parte Ford, 782 So. 2d 185 (Ala. 2000).
· cites it 4× “" Ala.Code 1975, § 25-5-56. Similarly, when a "worker agrees to accept a lump sum payment in lieu of periodic payments," Shaw , the trial court may not approve the commutation of compensation to a lump-sum payment unless it "is satisfied that it is in the best interest of the…”
ArvinMeritor, Inc. v. Handley, 12 So. 3d 669 (Ala. Civ. App. 2008).
· cites it 2× “See Ala.Code 1975, § 25-5-56 (giving judgments approving settlements conclusive and binding effect); see also Lawrence v.”
Opinion of the Clerk, Supreme Court, 356 So. 2d 636 (Ala. 1978).
· cites it 3× “Section 25-5-56 provides for settlements between parties and requires that such settlements be approved by the Circuit Judge and duly entered in the records of the Court in the same manner and have the same effect as other judgments.”
Sumner v. Michelin North Am., Inc., 966 F. Supp. 1567 (M.D. Ala. 1997).
· cites it 2× “The settling parties petitioned the court for approval pursuant to 1975 Ala.Code § 25-5-56. The statute requires court approval of a settlement for less than the amount of benefits a worker would otherwise be entitled to under the worker’s compensation schedule.”
Tate v. Liberty Mut. Ins. Co., 185 So. 3d 468 (Ala. Civ. App. 2015).
· cites it 8× “Code 1975, § 25-5-56, a part of the Alabama Workers’ Compensation Act (“the Act”), Ala.”
Matthew's Masonry Co. v. Aldridge, 25 So. 3d 464 (Ala. Civ. App. 2009).
· cites it 2× “See Ala. Code 1975, § 25-5-56. The parties settled the matter of the employee’s entitlement *468 to future medical benefits for his knees, and the trial court approved that settlement on May 22, 2000, finding that the settlement served the best interests of the employee.”
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