New York State Appeals Court Holds Dissatisfaction with Effect of MSA Not Grounds to Void Settlement


Plaintiffs, John Lenge and his wife, filed suit after John allegedly sustained an injury at work. On the first day of trial, the parties entered into a settlement agreement. The settlement agreement was memorialized on-the-record in open court. As part of the terms of the settlement, Plaintiffs’ counsel and the Plaintiffs acknowledged the possibility of establishing a Medicare Set-aside as part of the settlement. Plaintiffs also agreed to pay any Medicare liens that may have existed. Later, Plaintiffs moved to nullify the settlement. The court upheld the settlement as binding, stating “[t]he fact that the plaintiffs are unsatisfied with the amount they will receive after payment of the workers’ compensation lien and the establishment of a Medicare Set-aside does not constitute a sufficient ground to invalidate the settlement.”


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