Tex.
Labor Code Section 410.256
Court Approval of Settlement
(a)
A claim or issue may not be settled contrary to the provisions of the appeals panel decision issued on the claim or issue unless a party to the proceeding has filed for judicial review under this subchapter or Subchapter G. The trial court must approve a settlement made by the parties after judicial review of an award is sought and before the court enters judgment.(b)
The court may not approve a settlement except on a finding that:(1)
the settlement accurately reflects the agreement between the parties;(2)
the settlement adheres to all appropriate provisions of the law; and(3)
under the law and facts, the settlement is in the best interest of the claimant.(c)
A settlement may not provide for:(1)
payment of any benefits in a lump sum except as provided by Section 408.128 (Commutation of Impairment Income Benefits); or(2)
limitation or termination of the claimant’s right to medical benefits under Section 408.021 (Entitlement to Medical Benefits).(d)
A settlement or agreement that resolves an issue of impairment may not be made before the claimant reaches maximum medical improvement and must adopt one of the impairment ratings under Subchapter G (Impairment Income Benefits), Chapter 408 (Workers’ Compensation Benefits).(e)
A party proposing a settlement before judgment is entered by the trial court may petition the court orally or in writing for approval of the settlement.(f)
Settlement of a claim or issue under this section does not constitute a modification or reversal of the decision awarding benefits for the purpose of Section 410.209 (Reimbursement for Overpayment).(g)
Settlement of a claim or issue must be in compliance with all appropriate provisions of the law, including this section and Section 410.258 (Notification of Division of Proposed Judgments and Settlements; Right to Intervene) of this subchapter. A settlement which on its face does not comply with this section is void.
Source:
Section 410.256 — Court Approval of Settlement, https://statutes.capitol.texas.gov/Docs/LA/htm/LA.410.htm#410.256
(accessed Apr. 20, 2024).