Turner Padget Insights
The Role of Mediation for Workers' Compensation Cases in South Carolina
Posted On September 3, 2024
To mediate or not to mediate – that is not always the question. For instance, South Carolina mandates mediation to resolve certain workers’ compensation claims. These cases, defined in Section 67-1802 of the South Carolina Code of Regulations, typically include vast exposure and heavily litigious cases, such as alleged permanent and total disability, occupational disease, contested death, and those involving mental injury.
By its plain terms, the object of the mediation regulations adopted under Article 18 of the South Carolina Code of Regulations is to “resolve disputes without the necessity of a hearing. The purpose is to afford a meaningful opportunity to the parties to achieve an efficient and a just resolution of their disputes in a timely and a cost-effective manner.” S.C. Code Ann. Regs. 67-1801(A) (2012).
As this blog post explores, several aspects of mediation, even for non-mandatory claims, make it an auspicious substitute to a contested case hearing before a Workers’ Compensation Commissioner. In fact, a Commissioner retains the discretion to order mediation in any pending claim before the Commission. S.C. Code Ann. Regs. 67-1801(B) (2012).
The Traditional Hearing Route
Historically and prior to the adoption of the mediation regulations in 2013, one of South Carolina’s seven commissioners would typically decide a workers’ compensation case. While commissioners who continue to hear contested cases are aptly experienced and capable of rendering equitable decisions, the sheer volume of their dockets and evidence before them often leads to delays in decisions. Contra Russell v. Wal-Mart Stores, Inc., 426 S.C. 281, 285, 826 S.E.2d 863, 865 (2019) (“One primary goal of the Workers' Compensation Act is to provide quick and efficient resolution of work-related injury claims so neither employers nor employees become bogged down in complicated and protracted litigation.”). Moreover, once a decision is rendered, there is always the potential for appeal, extending both the process and increasing costs.
Benefits of Mediation
Mediation plays a pivotal role in resolving workers’ compensation claims by serving as a confidential and binding alternative to a contested case hearing. Aside from reducing the strain on the Workers’ Compensation Commission, it emboldens stakeholders with greater controls over outcomes while doing so in the context of an informal, efficient, and less expensive environment. Guided by a duly qualified and certified mediator, the process is conversational rather than confrontational, enabling each side to provide input and work toward a mutually agreeable resolution.
Put simply, the value of mediation is incontrovertible. The following aspects of mediation serve as paramount in our estimation:
- Informality: Though still adversarial,mediation is more relaxed than litigation as it encourages the parties to work together to achieve resolution. This atmosphere, often housed at a representative’s office, is less stressful than a courtroom with its formal rules and procedures. In fact, typically, the only time an argument exists at mediation is at the beginning, when the parties meet to discuss their respective positions.
- Confidentiality: Pursuant to regulation 67-1806 of the South Carolina Code of Regulations, all communications and statements made within the context of mediation cannot be used later in court as evidence. Additionally, participants, to include the mediator or an observer, cannot be subpoenaed as a witness to testify about what was said, heard, or any monetary amounts discussed.
- Efficiency: While court decisions can be thoroughly exhaustive through appellate channels lasting eons, mediation is typically completed in one day. Even if a settlement is not immediately reached, parties can reconvene later to resume negotiations. Mediation is also effective for resolving cases involving multiple areas of law, such as when an employee is injured in a company car accident, allowing for simultaneous resolution of workers’ compensation and liability claims.
- Cost-effective: Early mediation in the claims process can significantly reduce costs, including those associated with discovery, medical records, independent medical exams, and employee and attorney time. Settlements can also save future medical expenses and weekly benefits for employers, while claimants and their attorneys receive awards faster, allowing for quicker resumption of everyday activities.
- Control over Finality: Mediation agreements are final and cannot be appealed. Parties sign an agreement before leaving the session, ensuring that settlement terms are clear. Paperwork and checks are typically delivered within a week or two. This provides a psychological benefit of resolution by “controlling your destiny.”
- Alternative Avenues Remain: Should mediation result in an impasse, the case will be set for a contested case hearing before a Commissioner. In the interim, the parties remain free to attempt resolution amongst themselves or to reconvene mediation.
Tips for Effective Mediation
- Get Involved: Both employers and claimants often feel disconnected during a workers’ compensation claim. In mediation, all affected parties are encouraged to participate. Active involvement and a desire to resolve issues timely make mediation more effective. Your input is invaluable, so come open and ready to engage in the process.
- Be Prepared: Bring all relevant documents, including the employee file, communications with the insurance adjuster, and medical records. Be ready to address broader issues such as benefits and long-term implications. This comprehensive preparation helps address any questions and facilitates a smoother mediation process.
- Assess Potential Exposure: Defense attorneys can use mediation to gauge potential business exposure and how a case might unfold before a commissioner. This is particularly useful for managing client expectations and understanding the possible outcomes of a case.
By embracing mediation, South Carolina aims to provide a more efficient and less adversarial means of resolving workers’ compensation claims, benefiting both employers and employees. We encourage all stakeholders to continue to embrace this process as it is, and will remain, an integral part of resolving workers’ compensation matters in South Carolina.
Benjamin E. Calhoun is an attorney in Turner Padget’s Columbia office, where he is a member of the Workers’ Compensation practice.
