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In the Matter of the Claim of RICHARD T. WARBOYS, Respondent, against KRAFT FOODS CO. et al., Appellants. WORKMEN'S COMPENSATION BOARD, Respondent.

A motion for reargument of this appeal was granted by this court on March 17, 1954 ( 285 App. Div. 992) after we had affirmed a decision of the Workmen's Compensation Board ( 284 App. Div. 109 0). Counsel were requested to direct their arguments particularly to these questions: (a) whether the acceptance in satisfaction of a lien for compensation payments by the carrier of proceeds of a settlement of a third-party action alone will constitute an estoppel to rely on a refusal to give written consent to such settlement; and (b) whether the participation of the carrier in the negotiations for settlement in this case and the later acceptance of the proceeds of the settlement in full satisfaction of its lien accrued to that time, together estop the carrier from relying on a refusal to give a written consent to such settlement. A reargument has been had and we are constrained to reaffirm our previous decision. It is true that the refusal of the carrier to give a formal written consent to the settlement was prior to its acceptance of its share of the proceeds, but under the circumstances that fact is not of sufficient significance to alter our previous decision. There is no doubt that the carrier retained claimant's attorney to represent its assured on the counterclaim in the third-party action. Furthermore, the carrier through its agent participated in and was instrumental in effecting the settlement. For that purpose it compromised its compensation lien of $240 for the sum of $134.40. It directed the retention by the employer of the sum of $365.50 out of the proceeds of the settlement for damages to the automobile owned by it, and the retention by the claimant of $500 of the proceeds. These undisputed facts clearly demonstrate that the carrier actively participated in the settlement of the third-party action and hence is estopped as a matter of law from asserting that the settlement was consummated without its written consent. Decision reaffirmed, without costs, but with printing disbursements to the Workmen's Compensation Board and the claimant-respondent.

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MATTER OF WARBOYS v. KRAFT FOODS CO
(Oct 6, 1955)