BWC Administrator and CEO Steve Buehrer said Ohio has made major changes to its workers' compensation system over the past several years, which he said resulted in $1 billion in rebates to customers last year.
"The policies that were at issue in this litigation in 2007 are not the same ones in place today, and we're pleased that we have reached a settlement so we can move forward," Buehrer stated in a release issued Wednesday night. "All of these improvements are paying off for workers and businesses, and we're going to keep building on them."
As part of the agreement, a $420 million fund will be created to pay for claims to employers participating in the lawsuit, the attorney fees, court costs and the costs of administering the fund.
The next step, once the court gives preliminary approval of the settlement, is for class members to receive instructions for submitting claims. A third-party administrator would then begin processing claims. Any unclaimed funds will be returned to the Bureau of Workers' Comp. State Insurance Fund to pay claims to injured workers, according to the release.
Background on the San Allen lawsuit
- Dec.18, 2007: Case filed in Cuyahoga County Court of Common Pleas captioned San Allen Inc., et al. v. Ryan, Adm.· March 20, 2013: Decision handed down by Judge Richard McMonagle awarding plaintiffs $859,440,258.79;
- April 15, 2013: BWC filed appeal in the 8th District Court of Appeals
- July 19, 2013: BWC filed its brief in the 8th District Court of Appeals, and the Ohio Chamber of Commerce, NFIB and the AFL/CIO filed a joint Amicus brief supporting BWC's appeal;
- May 15, 2014: The 8th District Court of Appeals upheld most of the initial trial court decision but remanded the case to the trial court to reduce its prior award to account for benefits received by class members who were also in group rating. The March 2013 judgment is subsequently reduced to $650,978,738.82;
- June 27, 2014: BWC filed its Notice of Appeal to the Supreme Court of Ohio and asked it to take jurisdiction of the case;
- July 23, 2014: Agreement in principle to settle lawsuit announced.
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