NC General Statutes

N.C. Gen. Stat. § 97-17 (2026)

Settlements allowed in accordance with Article

✓ current as of July 2026
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(a) This article does not prevent settlements made by and between the employee and employer so long as the amount of compensation and the time and manner of payment are in accordance with the provisions of this Article. A copy of a settlement agreement shall be filed by the employer with and approved by the Commission. No party to any agreement for compensation approved by the Commission shall deny the truth of the matters contained in the settlement agreement, unless the party is able to show to the satisfaction of the Commission that there has been error due to fraud, misrepresentation, undue influence or mutual mistake, in which event the Commission may set aside the agreement. Except as provided in this subsection, the decision of the Commission to approve a settlement agreement is final and is not subject to review or collateral attack.

(b) The Commission shall not approve a settlement agreement under this section, unless all of the following conditions are satisfied:

(1) The settlement agreement is deemed by the Commission to be fair and just, and that the interests of all of the parties and of any person, including a health benefit plan that paid medical expenses of the employee have been considered.

(2) The settlement agreement contains a list of all of the known medical expenses of the employee related to the injury to the date of the settlement agreement, including medical expenses that the employer or carrier disputes, and a list of medical expenses, if any, that will be paid by the employer under the settlement agreement.

(3) The settlement agreement contains a finding that the positions of all of the parties to the agreement are reasonable as to the payment of medical expenses.

It is not necessary, however, to satisfy the condition in subdivision (2) of this subsection when in the settlement agreement the employer agrees to pay all medical expenses of the employee related to the injury to the date of the settlement agreement.

(c) In determining whether the positions of all of the parties to the agreement are reasonable as to the payment of medical expenses under subdivision (3) of subsection (b) of this section, the Commission shall consider all of the following:

(1) Whether the employer admitted or reasonably denied the employee's claim for compensation.

(2) The amount of all of the known medical expenses of the employee related to the injury to the date of the settlement agreement, including medical expenses that the employer or carrier disputes.

(3) The need for finality in the litigation.

(d) Nothing in this section shall be construed to limit the application of G.S. 44-49 and G.S. 44-50 to funds in compensation for settlement under this section.

(e) Nothing in this section prevents the parties from reaching a separate contemporaneous agreement resolving issues not covered by this Article. (1929, c. 120, s. 18; 1963, c. 436; 2001-216, s. 2; 2001-487, s. 102(b); 2005-448, s. 3; 2011-287, s. 4.)

 

Notes of Decisions
Cited in 79 cases (2 in the last 5 years), 1948–2025 · leading case: Vernon v. Steven L. Mabe Builders, 444 S.E.2d 191 (N.C. 1994).
Vernon v. Steven L. Mabe Builders, 444 S.E.2d 191 (N.C. 1994). · cites it 38× “The Court of Appeals also concluded that there was sufficient evidence in the record to support the Commission's finding that the Form 26 compensation agreement was not entered into by reason of misrepresentation or mutual mistake, and that plaintiff was not entitled to have the…”
Chaisson v. Simpson, 673 S.E.2d 149 (N.C. Ct. App. 2009). · cites it 28× “§ 97-17(a), which provides that “[a] copy of a settlement agreement shall be filed by the employer," see N.C. Gen. Stat. § 97-17 (a) (2007) (emphasis added), the “system envisioned” by the North Carolina General Assembly to “safeguard” the “processing and handling of compromise…”
Glenn v. McDonald's, 425 S.E.2d 727 (N.C. Ct. App. 1993). · cites it 24× “The dispositive question for our review is whether absent a showing of fraud, misrepresentation, mutual mistake, or undue influence, the Full Commission may set aside a settlement agreement duly executed by the parties, properly submitted to the Industrial Commission for…”
McAninch v. Buncombe Cnty. Schs., 489 S.E.2d 375 (N.C. 1997). · cites it 12× “The Commission also affirmed that plaintiff was entitled to compensation during the summer months and concluded that “[s]ince there is no basis to set aside the Form 21 Agreement in this case, it shall remain in full force and effect.”
Carroll v. Living Centers Se., Inc., 577 S.E.2d 925 (N.C. Ct. App. 2003). · cites it 26× “§ 97-85 for the reasons enumerated in N.C.G.S. § 97-17 which include fraud, misrepresentation, undue influence or mutual mistake, the Full Commission AFFIRMS the Order of the Deputy Commissioner denying plaintiff’s motion for a ten percent (10%) late payment penalty.”
Johnson v. First Union Corp., 496 S.E.2d 1 (N.C. Ct. App. 1998). · cites it 12× “The Commission’s power to remedy the effects of fraud involving *456 “settlements made by and between the employee and the employer, ” such as a Form 21 Agreement, was limited to setting aside the agreement tainted by fraud pursuant to N.C. Gen. Stat. § 97-17 (1991) (emphasis…”
Smythe v. Waffle House, 612 S.E.2d 345 (N.C. Ct. App. 2005). · cites it 14× “As we are bound by this ruling, we need not address these arguments. Plaintiff argues that the Commission erred by failing to undertake a full investigation to determine if the settlement agreement here was fair and just, as required by N.”
Roberts v. Century Contractors, Inc., 592 S.E.2d 215 (N.C. Ct. App. 2004). · cites it 8× “Plaintiff alleged that the Commission should set aside the settlement agreement pursuant to N.C.G.S. § 97-17 due to mutual mistake of fact.”
Morris v. L.G. Dewitt Trucking, Inc., 545 S.E.2d 474 (N.C. Ct. App. 2001). · cites it 18× “The dispositive issue is the number of days within which a defendant must pay a compromise settlement entered into with a plaintiff pursuant to N.C. Gen. Stat. § 97-17 before the defendant may be assessed a penalty pursuant to N.”
Allred v. Exceptional Landscapes, Inc., 743 S.E.2d 48 (N.C. Ct. App. 2013). · cites it 6× “The Opinion and Award found that the Commission had jurisdiction over the matter and thát the settlement agreement did not comply with the requirements of N.C. Gen. Stat. § 97-17 . The Commission did not approve the settlement because it was not fair and just.”
Kisiah v. W.R. Kisiah Plumbing, Inc., 476 S.E.2d 434 (N.C. Ct. App. 1996). · cites it 4× “We note that one such way a waiver might occur is when an employee and employer settle their compensation dispute in a manner consistent with N.C. Gen. Stat. § 97-17 , and that settlement is subsequently approved by the Commission.”
Kyle v. Holston Grp., 656 S.E.2d 667 (N.C. Ct. App. 2008). · cites it 8× “Full Investigation Plaintiff next argues that the Agreement should have been set aside because the Full Commission failed to undertake a full investigation to determine if the Agreement was fair and just, as required by N.C. Gen. Stat. § 97-17 . Under the circumstances, we agree.”
— N.C. Gen. Stat. § 97-17(a) — 5 cases
Chaisson v. Simpson, 673 S.E.2d 149 (N.C. Ct. App. 2009). “§ 97-17(a), which provides that “[a] copy of a settlement agreement shall be filed by the employer," see N.C. Gen. Stat. § 97-17 (a) (2007) (emphasis added), the “system envisioned” by the North Carolina General Assembly to “safeguard” the “processing and handling of compromise…”
Carroll v. Living Centers Se., Inc., 577 S.E.2d 925 (N.C. Ct. App. 2003). “§ 97-85 for the reasons enumerated in N.C.G.S. § 97-17 which include fraud, misrepresentation, undue influence or mutual mistake, the Full Commission AFFIRMS the Order of the Deputy Commissioner denying plaintiff’s motion for a ten percent (10%) late payment penalty.”
Roberts v. Century Contractors, Inc., 592 S.E.2d 215 (N.C. Ct. App. 2004). “Plaintiff alleged that the Commission should set aside the settlement agreement pursuant to N.C.G.S. § 97-17 due to mutual mistake of fact.”
Acton v. Lowes, 665 S.E.2d 594 (N.C. Ct. App. 2008).
Shepherd v. Nat'l Fed'n, 709 S.E.2d 397 (N.C. Ct. App. 2011).
— N.C. Gen. Stat. § 97-17(b) — 1 case
Chaisson v. Simpson, 673 S.E.2d 149 (N.C. Ct. App. 2009). “§ 97-17(a), which provides that “[a] copy of a settlement agreement shall be filed by the employer," see N.C. Gen. Stat. § 97-17 (a) (2007) (emphasis added), the “system envisioned” by the North Carolina General Assembly to “safeguard” the “processing and handling of compromise…”
— N.C. Gen. Stat. § 97-17(b)(1) — 1 case
HINCEMAN v. Food Lion, 671 S.E.2d 594 (N.C. Ct. App. 2008).
— N.C. Gen. Stat. § 97-17(b)(l) — 1 case
Chaisson v. Simpson, 673 S.E.2d 149 (N.C. Ct. App. 2009). “§ 97-17(a), which provides that “[a] copy of a settlement agreement shall be filed by the employer," see N.C. Gen. Stat. § 97-17 (a) (2007) (emphasis added), the “system envisioned” by the North Carolina General Assembly to “safeguard” the “processing and handling of compromise…”
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