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Mississippi Insurance Guaranty Association v. Brewer7/26/2005 ogation for monies paid to Brewer after she was made a paraplegic in December 1994. We remand this case to the circuit court for further proceedings consistent with this opinion.
III. Whether the trial court erred in its ruling that there was no requirement that the court approve the settlement reached in the negligence action.
. Additionally, River Region and Dr. Dare argue that the circuit court erred in its ruling that there was no requirement that the settlement reached between Brewer and themselves in the negligence action be approved by the court. Conversely, Brewer maintains that since her paraplegia was not covered under the workers' compensation statute, there was no statutory requirement that the settlement be approved by the circuit court.
. Section 71-3-71 provides that " n case of settlement of any action before the trial thereof, such settlement shall be subject to the approval of the court wherein such action is pending and settlement before an action is brought shall be subject to the approval of the commission." The Mississippi Supreme Court has explained the rationale for the approval requirement:
The legislative purpose in requiring approval . . . of settlements of employees' claims against third party tort-feasors was to insure the protection of employees in their compensation rights, to prevent improvident and unwise releases of claims against such third parties, and to preserve the subrogation and indemnity rights of the employer or insurer against such third parties. The statute clearly prohibits such settlements without approval . . . .
Powe v. Jackson, 236 Miss. 11, 22-23; 109 So. 2d 546, 550 (1959).
. Having found that Brewer's paraplegia was not covered by ยง 71-3-1 et seq., the circuit court determined that it was not required to approve the settlement. Both findings, however, were in error. As previously mentioned, Brewer's paraplegia was a compensable injury under the workers' compensation statute, and therefore, the settlement for the negligence action required approval for the reasons listed in Powe. In this case, the settlement was reached after the claim was filed in the circuit court. Therefore, the statutory approval requirement had shifted from the Commission to the circuit court. We find accordingly that because Brewer's paraplegia was covered under the workers' compensation statute, the circuit court's approval of the settlement reached between Brewer, River Region, and Dr. Dare is required before the settlement becomes enforceable.
. THE JUDGMENT OF THE CIRCUIT COURT OF HINDS COUNTY IS REVERSED AND REMANDED. ALL COSTS OF THIS APPEAL ARE ASSESSED TO THE APPELLEE.
KING, C.J., BRIDGES AND LEE, P.JJ., IRVING, MYERS, CHANDLER, AND BARNES, JJ., CONCUR.
GRIFFIS, J., NOT PARTICIPATING.
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