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What Is A Lump Sum Settlement In Rhode Island?


What does a lump sum settlement mean in Rhode Island?


A lump sum settlement is an agreed-upon value paid to the employee that ultimately closes the case.


Lump Sum aka Commutation

A lump sum settlement in Rhode Island workers’ compensation cases is often referred to as a commutation. This situation generally involves a person who’s been on workers’ compensation for six months or more. If it doesn’t look like the employee is likely to return to his or her job for whatever reason, then there is the possibility of a lump sum settlement or commutation. In these cases, we try to calculate a fair number that takes into consideration how much longer the person would even be entitled to collect checks versus the likelihood that they could ever collect checks for that period of time before being knocked off by the employer.

Appearing Before The Judge

We try to arrive at a number that both sides are willing to accept. In order to do this, we must appear before a judge of the workers’ compensation court and explain the settlement. The judge will ultimately decide whether or not he thinks a settlement is in the best interest of both parties and decide whether or not to approve it accordingly.

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