Submitted By: Richard Dennis
presenter
Presentation By: William Sexton
end
Department: Human Resources and Risk Management
FORMAL TITLE:
title
Workers’ compensation settlement in the matter of Thomas Casey versus the City of Ocala, Florida, with a proposed settlement amount of $150,000
end
OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
NA
body
BACKGROUND:
This is a claim by Thomas Casey, age 61, who has been employed by the City of Ocala since August 30, 1994, and who, on or about November 6, 2024, sustained a work-related injury while attempting to remove a manhole cover.
Immediately upon attempting to remove the manhole cover, Mr. Casey experienced pain in his lower back and, upon returning to the office, noticed that his discomfort had escalated into a radiating pain throughout his lower back, resulting in tightening and stiffness.
A significant source of exposure relative to this claim is the potential for medical benefits that could be owed to Mr. Casey. Specifically, the surgical procedure previously recommended by Dr. Graham and ordered by the Judge of Compensation Claims presents significant exposure, with a likely cost of approximately $70,000, in addition to potential (and likely) post-operative treatment, including physical therapy and perhaps injections for pain flare-ups. The total estimate for the surgery and post-operative treatment is $110,000.
There is also the possibility of post-surgical referral to pain management, which has a potential exposure of $40,000.
In addition to the claimant’s lumbar conditions, Dr. Graham has suggested that Mr. Casey’s right arm and shoulder problems may be related to the work accident, along with his neck pain. If these conditions are related to the work accident, and Mr. Casey required conservative care for these conditions, there is an additional estimated exposure of $10,000 to $15,000. This exposure could be significantly increased if additional surgical procedures or treatments are required.
In addition to the aforementioned medical expenses, there is potential exposure for attorney’s fees, estimated at $40,000 to $50,000. There is also potential exposure for additional attorney’s fees in the event that Mr. Casey were to secure benefits as a result of the currently pending petition for benefits. Likewise, there is potential for additional litigation costs, estimated at $25,000.
As a result of the foregoing, staff is recommending and asking for authority to settle Mr. Casey’s claim for $150,000.
Upon approval of this settlement, Mr. Casey would also voluntarily resign his employment with the City of Ocala.
FINDINGS AND CONCLUSIONS:
City staff finds and determines that the settlement of this matter for the sum of $150,000.00:
• Represents a reasonable, cost-effective settlement of the pending litigation while avoiding additional costs of litigation and the risk of an adverse judgment on appeal and/or subsequent Final Hearing.
• Does not result in a significant impact on the finances of the City of Ocala, Florida; and
• Is in the best interest of the City of Ocala, Florida, and its citizens.
• Staff recommends approval.
FISCAL IMPACT:
As this is an accepted claim, it appears unlikely that the self-insured retention would be reached. The $150,000 all-inclusive settlement would be paid from account 628-099-999-590-81-45020 in the City’s self-insurance Workers’ Compensation fund.
PROCUREMENT REVIEW:
NA
LEGAL REVIEW:
The settlement resolution has been reviewed and is recommended by Bettina Carrier, the City’s Workers’ Compensation Attorney and City Attorney William E Sexton.
ALTERNATIVE:
The City would continue to have exposure for indemnity and medical benefits, which could far exceed the cost of the proposed settlement.