Prehearings and Settlements

The issues that a PALJ has authority to address include extensions of time to begin a hearing, discovery matters and evidentiary disputes. For example, if each party is represented by a lawyer, no permission is needed to begin discovery. Otherwise, permission from a PALJ is required to engage in discovery, which includes the right of one party to ask another party to produce documents or answer written questions about the case. If there is a dispute about discovery, either party can request a prehearing conference to address the dispute. Discovery matters also include issues that come up during the Division Independent Medical Examination (DIME) process. 

Conferences are set at the request of a party, and the judge may order the opposing parties to attend and participate. Upon completion of the PHC the PALJ will enter an order setting forth the parties’ agreements and/or the judge’s determinations.  If a party fails to follow the order, the PALJ may order sanctions against that party. The type of sanction depends on the facts of each case.

PALJs also have authority to rule on written motions. Resolving matters through prehearing conferences and written motions reduces the number of issues that require formal adjudication “…to assure the quick and efficient delivery of disability and medical benefits to injured workers at a reasonable cost to employers ….”

PALJs operate under the auspices of the prehearing conference statute and their orders are orders of the Director of Workers’ Compensation and are binding on the parties.

Settlement discussions are confidential and cannot be used as evidence in a hearing. The PALJ assists in the exchange of information, helps the parties to examine the merits and weaknesses of their respective positions, weigh the risks and costs of litigation, and helps the parties negotiate a settlement of the issues.

Settlements can be made on single or multiple issues, or they can resolve all issues on a “full and final” basis, which means all issues are settled and the case is then closed upon written approval of the settlement terms by the Director or a PALJ. Sometimes the competency of a claimant arises as an issue in a case, where the claimant is a minor or has suffered the loss of mental abilities to manage his or her affairs. In those situations, the parties may need a prehearing conference with a PALJ to determine competency of the claimant before any settlement can be approved.