Federated Insurance Co. V. Lethcoe

This is an appeal from the Chancery Court for McMinn County which, pursuant to Tennessee Rule of Civil Procedure 60.02(5), modified a judgment that was previously entered in accord with a settlement agreement between the parties. The appellants appealed and contended that the trial court improperly modified the judgment and reduced the benefits they were to receive according to the agreement. The Special Workers' Compensation Appeals Panel affirmed the judgment of the trial court, and the appellants filed a motion for full review by this Court to determine whether a party can seek modification of a workers' compensation judgment for a fixed sum to be paid periodically almost two years after entry of judgment. We hold that where a party agrees to settle a workers' compensation claim, and the trial court approves the settlement, the settling party is generally not entitled to relief pursuant to Rule 60.02(5). Accordingly, we reverse the judgments of the trial court and the Special Workers' Compensation Appeals panel and remand this case to the trial court for further proceedings.