In the matter of Neff v. Continental Tire North America (Jefferson County, Illinois Case 2009-MR-22) an injured worker agreed to a lump sum settlement of his workers’ compensation claims. Centers for Medicare and Medicaid Services (CMS) approved the annuitized funding of a Workers Compensation Medicare set-aside account. The worker filed an action claiming that a lump-sum settlement required the employer’s lump-sum funding of the set-aside account. The worker claimed sanctions and attorney fees against the employer, alleging failure to abide a workers’ compensation settlement order. The trial court dismissed the injured worker’s claims, with prejudice, with the court holding that the worker stated no proper claim under contract, the worker lacked standing to challenge a funding scheme where only Medicare’s and the employer’s rights were affected, the worker failed to name the US Government as a necessary party to any action which challenges a CMS-approved funding scheme, and FMGR’s client holds a reversionary interest in the set-aside funds. Plaintiff Neff appealed the dismissal to the Illinois Fifth District Appellate Court, which affirmed the trial court’s dismissal, with prejudice, holding that the Plaintiff failed to state a cause of action for which relief could be granted, as the plaintiff suffered no injury as a result of the complained-of conduct.

FMGR litigation and appellate counsel: Thomas R. Frenkel