Cases

Parties settled case and benefits paid to claimant notwithstanding a fraud defense asserted by employer/carrier. Thereafter, additional petitions filed and employer/carrier defended based on fraud defenses. JCC rejected fraud defenses based on the legal theory of res judicata. On appeal, court reversed judge’s decision determining that res judicata did not apply in this instance.

Res judicata applies to all matters actually raised and determined as well as to all other matters which could properly have been raised and determined in the prior action, whether they were or not. In this case, the employer/carrier did not argue fraudulent misrepresentation prior to the earlier settlement but also that misrepresentations were made after the earlier settlement. Since the fraud defense was based upon facts that allegedly arose after the earlier settlement and concerned new petitions for benefits, the defense was not barred by the earlier settlement.