Sheila W. Austin, as the administrator of the estate of Rose Williams McMillan, deceased, filed an appeal against a summary judgment from the Mobile Circuit Court in favor of Providence Hospital and Sedgwick Claims Management Services. Rose Williams McMillan had agreed to settle her claim for future medical benefits due to a work-related injury for $75,000. This settlement, alongside a Workers’ Compensation Medicare Set-Aside Arrangement proposal, was approved by the Department of Health and Human Services, Centers for Medicare and Medicaid Services. McMillan passed away shortly after.
Upon her death, Providence Hospital and Sedgwick claimed that the settlement agreement wouldn’t be honored, sparking a breach-of-contract action. The trial court ruled that the action was barred due to the exclusivity provisions of the Act and because the agreement was not validated by a circuit court and couldn’t be made valid after the employee's death. The appeal court affirmed the decision.
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