TRIAL COURT SETS ASIDE SETTLEMENT AGREEMENT, APPROVED BY DOL
A local trial court has set aside a settlement that was effectuated at a Benefit Review Conference and signed by a specialist at the Department of Labor. The settlement was reached following a mediation. The parties entered into and executed a Settlement Agreement which, under the Workers’ Compensation Act, has the same authority as a court order. A trial court found that a BRC is a legal proceeding and that Tennessee law is clear that corporations are not permitted to represent themselves in any legal proceeding.
The court held that a corporation (insurance company or corporate employer) cannot have a non-attorney sign a settlement agreement at the Department of Labor. The court held that signing such a document by a non-attorney constitutes the unauthorized practice of law. The court held that the settlement approval was void since the person signing on behalf of the employer/insurance company was not an attorney.
T.C.A. ยง23-3-103 makes it a Class A misdemeanor for a person, firm, association or corporation to engage in the unauthorized practice of law.
Posted: February 13th, 2007 under Case Law Decisions, General, Legislation.
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