DiCarlo v. Suffolk Construction Co., Inc. Professional Electrical Contractors of Connecticut (SJC-11854) Martin v. Angelini Plastering, Inc. , 473 Mass. 624 ( 2016 )


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    SJC-11854
    SJC-11853
    ROBERT M. DiCARLO vs. SUFFOLK CONSTRUCTION CO., INC.,
    & others; 1 PROFESSIONAL ELECTRICAL CONTRACTORS OF
    CONNECTICUT, INC., third-party defendant.
    BERNARD J. MARTIN & another 2 vs. ANGELINI PLASTERING,
    INC., & others. 3
    Suffolk.   Middlesex.    October 8, 2015. - February 12, 2016.
    Present:   Gants, C.J., Spina, Cordy, Botsford, Duffly, & Lenk,
    JJ.
    Workers' Compensation Act, Action against third person,
    Settlement agreement, Insurer. Lien. Statute,
    Construction.
    Civil action commenced in the Superior Court Department on
    March 29, 2007.
    A petition for settlement was heard by Frances A. McIntyre,
    J.
    1
    Walter Brook Crossing, LLC; Twin City Fire Insurance
    Company, interested party.
    2
    Nora Martin, individually and as parent and next friend of
    Philip Martin.
    3
    Shawmut Design and Construction; Hartford Insurance
    Company of the Midwest, interested party.
    2
    A proceeding for interlocutory review was heard in the
    Appeals Court by Judd J. Carhart, J. After review by the
    Appeals Court, the Supreme Judicial Court granted leave to
    obtain further appellate review.
    Civil action commenced in the Superior Court Department on
    September 15, 2011.
    A petition for settlement was heard by Dennis J. Curran, J.
    After review by the Appeals Court, the Supreme Judicial
    Court granted leave to obtain further appellate review.
    Wystan M. Ackerman for Twin City Fire Insurance Company &
    another.
    Charlotte E. Glinka for Bernard Martin & another.
    Thomas R. Murphy for Robert M. DiCarlo.
    Paul M. Kessimian & David J. Pellegrino, for American
    Insurance Association, amicus curiae, submitted a brief.
    Annette Gonthier Kiely, Michael C. Najjar, & J. Michael
    Conley, for Massachusetts Academy of Trial Attorneys, amicus
    curiae, submitted a brief.
    LENK, J.   Under Massachusetts law, employees who receive
    workers' compensation benefits may not sue their employers for
    claims arising from work-related injuries.    See G. L. c. 152,
    § 24. 4   Employees may, however, file claims against third parties
    for damages arising from those injuries.    See G. L. c. 152,
    §§ 15, 24.    When an employee recovers damages from a third
    party, the workers' compensation insurer is statutorily entitled
    to a lien on the recovery in the amount that the insurer paid to
    the employee in benefits.    See G. L. c. 152, § 15.   In these two
    4
    Employees may, however, opt out of the workers'
    compensation system at the time of their hire. See G. L.
    c. 152, § 24. If they do so, they retain their rights to sue at
    common law for damages, see 
    id., but lose
    their rights to
    workers' compensation benefits. See G. L. c. 152, § 26.
    3
    cases, we are asked to ascertain the extent of this lien and, in
    particular, to clarify whether the lien attaches to damages paid
    by a third party for an employee's pain and suffering.
    The cases involve two employees, Robert M. DiCarlo and
    Bernard J. Martin, who were injured in the course of their
    employment, collected workers' compensation benefits, and then
    reached settlement agreements with third parties including
    damages for, among other things, their pain and suffering.     The
    same insurer insured both employers. 5   The insurer sought
    reimbursement under G. L. c. 152, § 15, from the employees'
    recoveries, including their awards for pain and suffering.    In
    DiCarlo's case, a Superior Court judge rejected a settlement
    agreement providing that the insurer would not have a lien on
    the damages for pain and suffering, concluding that the
    insurer's lien attached to DiCarlo's entire recovery.    DiCarlo
    appealed, citing the Appeals Court's decision in Curry v. Great
    American Ins. Co., 
    80 Mass. App. Ct. 592
    , 595 (2011) (Curry),
    which held that an insurer's lien does not attach to damages
    paid for pain and suffering because workers' compensation does
    not cover those harms.   In Martin's case, a Superior Court judge
    approved a settlement agreement similar to the agreement
    5
    Twin City Fire Insurance Company is a subsidiary of
    Hartford Insurance Company of the Midwest. For simplicity, we
    refer to both entities as "the insurer."
    4
    rejected by the judge in DiCarlo's case; the insurer appealed
    from this decision.
    Relying in both cases on its precedent in Curry, the
    Appeals Court determined that the employees' awards for pain and
    suffering were exempt from the insurer's liens.     See DiCarlo v.
    Suffolk Constr. Co., 
    86 Mass. App. Ct. 589
    (2014); Martin v.
    Angelini Plastering, Inc., 
    86 Mass. App. Ct. 1122
    (2014).     We
    granted the insurer's applications for further appellate review
    and combined the two cases for argument.    We conclude,
    similarly, that an insurer's lien does not extend to damages
    allocated to an employee's pain and suffering.
    1.    Background and procedural history.   In October, 2004,
    DiCarlo suffered serious injuries to his back while working as
    an electrician at a construction site.    The injuries resulted in
    ongoing physical and emotional suffering.     In the wake of these
    injuries, the workers' compensation insurer for DiCarlo's
    employer paid him workers' compensation benefits for medical
    expenses ($48,431.16) and for lost wages ($233,387.95).
    DiCarlo and his wife then filed a tort action in the
    Superior Court against the defendants:    Walter Brook Crossing,
    LLC, the owner of the construction site where DiCarlo worked;
    and Suffolk Construction Co., Inc., the contractor managing that
    site.     The defendants then filed third-party complaints against
    Professional Electrical Contractors of Connecticut, Inc.
    5
    (Professional Electrical), seeking indemnification.    The
    defendants and Professional Electrical thereafter reached an
    agreement with DiCarlo to settle all claims for $100,000.      After
    reaching this agreement, the parties presented a proposed
    settlement agreement to the court as required by G. L. c. 152,
    § 15.    The agreement allocated thirty-five per cent of the
    settlement to DiCarlo's pain and suffering, indicating
    specifically that the amount would not be subject to the
    insurer's lien.
    A Superior Court judge reviewed the settlement agreement
    and, as required by G. L. c. 152, § 15, gave the insurer an
    "opportunity to be heard" on the fairness of the settlement.
    The insurer objected to the agreement, arguing that, the Curry
    case notwithstanding, its lien should attach to the award for
    pain and suffering.    The judge agreed with the insurer and
    declined to approve the settlement.    DiCarlo appealed, and the
    Appeals Court reversed.    See DiCarlo v. Suffolk Constr. Co.,
    supra at 594.
    Martin was injured in August, 2010, while working as an
    electrician at a construction site.    Since then, he has suffered
    ongoing physical pain and mental anguish.    The insurer paid
    Martin $566,392.94 in benefits. 6   Martin and his wife thereafter
    6
    The record does not indicate how this amount was
    apportioned between lost wages and medical expenses.
    6
    filed a tort action against Angelini Plastering, Inc., a
    subcontractor at the construction site where Martin was injured,
    and Shawmut Design and Construction, the general contractor
    managing that site.      The parties agreed to settle all claims for
    $1 million.
    In a settlement agreement filed pursuant to G. L. c. 152,
    § 15, the parties requested that thirty per cent of the payment
    be allocated to Martin's pain and suffering, and that the amount
    be exempt from the insurer's lien.     A different Superior Court
    judge approved the settlement, over the insurer's objection that
    the award for pain and suffering should be included in its lien.
    The insurer, as an interested party, appealed from the judge's
    decision, and a panel of the Appeals Court affirmed.      See Martin
    v. Angelini Plastering, 
    Inc., supra
    .
    2.    Discussion.   General Laws c. 152, § 15 (§ 15), 7
    generally provides that, where an injured employee collects
    7
    General Law c. 152, § 15, provides, in relevant part:
    "Where the injury for which compensation is payable
    was caused under circumstances creating a legal liability
    in some person other than the insured to pay damages in
    respect thereof, the employee shall be entitled, without
    election, to the compensation and other benefits provided
    under this chapter. . . . The sum recovered shall be for
    the benefit of the insurer, unless such sum is greater than
    that paid by it to the employee, in which event the excess
    shall be retained by or paid to the employee. For the
    purposes of this section, 'excess' shall mean the amount by
    which the gross sum received in payment for the injury
    exceeds the compensation paid under this chapter. . . .
    7
    workers' compensation benefits and then recovers damages for the
    same injury from a third-party tortfeasor, "[t]he sum recovered
    [from the third party] shall be for the benefit of the [workers'
    compensation] insurer."   The "sum" to which the insurer is
    entitled is described, in the next sentence, as "the gross sum
    received in payment for the injury."   G. L. c. 152, § 15.
    The nub of the dispute before us concerns the meaning of
    the phrase "gross sum received in payment for the injury," and,
    Except in the case of settlement by agreement by the
    parties to, and during a trial of, such an action at law,
    no settlement by agreement shall be made with such other
    person without the approval of either the board [of the
    Department of Industrial Accidents (department)], the
    reviewing board [of the department], or the court in which
    the action has been commenced after a hearing in which both
    the employee and the insurer have had an opportunity to be
    heard. At such hearing the court shall inquire and make a
    finding as to the taking of evidence on the merits of the
    settlement, on the fair allocation of amounts payable to
    the employee and the employee's spouse, children, parents
    and any other member of the employee's family or next of
    kin who may have claims arising from the injury for which
    are payable, under this chapter in which the action has
    been commenced after an opportunity has been afforded both
    the insurer and the employee to be heard on the merits of
    the settlement and on the amount, if any, to which the
    insurer is entitled out of such settlement by way of
    reimbursement, and on the amount of excess that shall be
    subject to offset against any future payment of benefits
    under this chapter by the insurer, which amount shall be
    determined at the time of such approval. . . . In the case
    of a settlement by agreement by the parties to and during a
    trial of such an action at law, only the justice presiding
    at the trial shall have and exercise, relative to the
    approval of such settlement by agreement and to the
    protection of the rights and interests of the employee, his
    family members, and the insurer, the powers granted in the
    preceding sentence."
    8
    in particular, the meaning of the word "injury."    The employees
    urge that "injury" be construed narrowly to mean only those
    injuries for which workers' compensation benefits are payable,
    thereby excluding pain and suffering from its purview and, by
    consequence, excluding damages for pain and suffering from the
    reach of an insurer's lien.    The insurer, on the other hand,
    advocates a more expansive view of the term "injury" as used in
    the phrase "gross sum received in payment for the injury."     By
    including pain and suffering within the meaning of "injury," all
    damages awarded the employee would be subject to the insurer's
    lien. 8   For the reasons that follow, we conclude that both
    statutory language and legislative intent support the narrower
    meaning of "injury," and that damages for pain and suffering are
    not within the insurer's lien.
    Like all statutory provisions, § 15 "must be interpreted
    according to the intent of the Legislature ascertained from all
    its words construed by the ordinary and approved usage of the
    language, considered in connection with the cause of its
    enactment, the mischief or imperfection to be remedied and the
    8
    Certain amounts are, however, expressly exempt from the
    insurer's lien. General Laws c. 152, § 15, excludes from the
    lien an employee's "excess" recovery (defined as "the amount by
    which the gross sum received in payment for the injury exceeds
    the [workers'] compensation paid"), as well as any "amounts
    payable to the . . . employee's spouse, children, parents and
    any other member of the employee's family or next of kin" for
    their loss of consortium. 
    Id. 9 main
    object to be accomplished, to the end that the purpose of
    its framers may be effectuated."    Galenski v. Erving, 
    471 Mass. 305
    , 309 (2015), quoting Worcester v. College Hill Props., LLC,
    
    465 Mass. 134
    , 139 (2013) (College Hill).    "In interpreting the
    meaning of a statute, we look first to the plain statutory
    language."   College Hill, supra at 138.
    As mentioned, the workers' compensation statute provides an
    insurer with a lien on the "gross sum received in payment for
    the injury" (emphasis supplied).    The insurer here urges that we
    interpret this phrase in light of other uses of the term
    "injury" in G. L. c. 152, the workers' compensation act, where
    the word often appears to refer to the totality of harm suffered
    by a worker, including pain and suffering.    See Randall's Case,
    
    331 Mass. 383
    , 386 (1954) ("if reasonably practicable, words
    used in one place in a statute with a plain meaning are given
    the same meaning when found in other parts of the same
    statute").   See, e.g., G. L. c. 152, § 1 (using "compensable
    injury" to describe subset of injuries for which compensation
    may be paid); G. L. c. 152, § 29 (using word "injury" to refer
    to noncompensable damage -- i.e., that "which does not
    incapacitate the employee").    See also Crowley's Case, 
    287 Mass. 367
    , 374 (1934) (defining "injury" in workers' compensation
    statute to include "pain").    Such a reading would lead to the
    conclusion that a lien on a payment for "the injury" attaches to
    10
    all damages paid to the employee, including those for pain and
    suffering.
    Such an interpretation, however, would require the word
    "injury" to take on two different meanings within § 15.     In the
    section's opening phrase, "injury" is used narrowly to refer to
    "the injury for which [workers'] compensation is payable."
    G. L. c. 152, § 15.   The insurer proposes that, three sentences
    later, where the provision speaks of the "gross sum received in
    payment for the injury," the word "injury" be read expansively
    to refer to all harms suffered by the worker, including those
    not covered by workers' compensation.   
    Id. We cannot
    indorse
    this construction, which "would require us to attribute
    different meanings to the same words in the same paragraph."
    Bilodeau v. Lumbermens Mut. Cas. Co., 
    392 Mass. 537
    , 543 (1984).
    See 2B N.J. Singer & J.D. Shambie Singer, Statutes and Statutory
    Construction §   51:2 (7th ed. 2012), quoting Commissioner of
    Internal Revenue v. Ridgeway's Estate, 
    291 F.2d 257
    , 259 (3d
    Cir. 1961) ("the need for uniformity [in interpreting statutory
    language] becomes more imperative where . . . a word is used
    more than once in the same section").   See also Burke v.
    Atlantic Research Corp., 
    18 Mass. App. Ct. 497
    , 500-501 (1984),
    S.C., 
    395 Mass. 1009
    (1985) (applying this canon to G. L.
    c. 152, § 15).
    11
    Instead, we interpret the phrase "gross sum received in
    payment for the injury" in light of the rule that, "[w]hen the
    Legislature uses the same term in the same section . . . , the
    term should be given a consistent meaning throughout."
    Commonwealth v. Hilaire, 
    437 Mass. 809
    , 816 (2002).    See R.D. v.
    A.H., 
    454 Mass. 706
    , 714 (2009), quoting Beeler v. Downey, 
    387 Mass. 609
    , 617 (1982) ("where words are used in one part of a
    statute in a definite sense, they should be given the same
    meaning in another part of the statute").    Here, the first
    sentence of § 15 uses the word "injury" in the "definite sense,"
    see R.D. v. 
    A.H., supra
    , of "injury for which [workers']
    compensation is payable."   G. L. c. 152, § 15.   Therefore, three
    sentences later, when the word "injury" is used as part of the
    phrase "gross sum received in payment for the injury," it
    "should be given the same meaning."   See R.D. v. 
    A.H., supra
    .
    Construing the word "injury" consistently throughout § 15
    comports with our view in Eisner v. Hertz Corp., 
    381 Mass. 127
    ,
    132 (1980) (Eisner), quoting G. L. c. 152, § 15, that "[f]or the
    insurer's right to reimbursement to attach, the injury must be
    one 'for which compensation is payable.'"    As a result, "[§] 15
    does not require reimbursement for an injury not compensable
    under c. 152."   Eisner, supra at 133.   Similarly, in Bruso's
    Case, 
    295 Mass. 531
    , 532 (1936), we indicated that only where
    third-party damages "are part of the compensation benefits to
    12
    which the employee is entitled under the [workers'] compensation
    act [is] the insurer . . . entitled to recover the amount from
    the proceeds of the settlement with the third person." 9
    We find further support for this interpretation later in
    § 15, where the statutory language contemplates an employee's
    receiving an award of damages from which an insurer has no right
    to recover.   That provision references "the amount, if any, to
    which the insurer is entitled out of [an employee's recovery] by
    way of reimbursement" (emphasis added).   See G. L. c. 152, § 15.
    Given that "a statute must be construed so that . . . no part
    will be inoperative or superfluous" (quotation and citation
    omitted), Bankers Life & Cas. Co. v. Commissioner of Ins., 
    427 Mass. 136
    , 140 (1998), the "if any" language must have
    9
    Our statement in Rhode v. Beacon Sales Co., 
    416 Mass. 14
    ,
    19 (1993), that, "[u]ntil an 'excess' recovery exists, the
    entire recovery is for the insurer," is not to the contrary.
    The statement could not have been meant literally, given that
    G. L. c. 152, § 15, itself now expressly provides for an
    exemption for loss of consortium damages beyond that for excess
    recovery. See note 
    8, supra
    . Nor does this statement mean that
    all exemptions from the insurer's lien need be stated explicitly
    in the statute. Our cases have not read § 15 as containing an
    exhaustive list of what is and is not covered by the insurer's
    lien. See Bongiorno v. Liberty Mut. Ins. Co., 
    417 Mass. 396
    ,
    402 (1994) (employee's legal malpractice recovery subject to
    insurer's lien even though statute does not explicitly so
    provide); Hunter v. Midwest Coast Transp., Inc., 
    400 Mass. 779
    ,
    782 (1987) (excess third-party damages retained by employee
    reduce insurer's future obligations even though "[§] 15 makes no
    express provision regarding an insurer's right to offset any
    part of such an 'excess'"); Eisner v. Hertz Corp., 
    381 Mass. 127
    , 133-134 (1980) (concluding that statute includes exemption
    for loss of consortium damages, eleven years before that
    exemption was codified in St. 1991, c. 398, § 39).
    13
    cognizable meaning.   Our holding makes this possible, allowing
    the words to account for the rare instance where an award is
    allocated entirely to pain and suffering, resulting in its
    complete exemption from the insurer's lien.
    The insurer contends that this exemption is not necessary
    to give effect to the words in question.    Rather, the insurer
    says, the "if any" language accounts for a situation of no
    relevance here:   one where the award is allocated entirely to
    damages for loss of consortium, which the statute expressly
    exempts from the lien.    See Hultin v. Francis Harvey & Sons,
    Inc., 
    40 Mass. App. Ct. 692
    , 698 (1996).    This, however, could
    not have been the situation contemplated by the Legislature in
    1939, when the statute was amended to include the "if any"
    language, well before Massachusetts recognized a cause of action
    for loss of consortium.    See Diaz v. Eli Lilly & Co., 
    364 Mass. 153
    , 157-159 (1973) (recognizing loss of consortium claims and
    overruling 1909 case that disallowed such claims); St. 1939,
    c. 401 (adding provision regarding "amount, if any, to which the
    insurer is entitled").    By contrast, at that time, Massachusetts
    law had long recognized claims for pain and suffering and also
    had made use of special verdicts, which allow explicit
    allocations to pain and suffering.    See Reporter's Note to
    Rule 49 [1973], Mass. Ann. Laws Court Rules, Rules of Civil
    Procedure, at 793-794 (LexisNexis 2015-2016) (discussing
    14
    rule 49's provision for special verdict and citing to early
    cases); Pressey v. Wirth, 
    3 Allen 191
    , 191 (1861) (mentioning
    damages for pain and suffering).
    The insurer also urges us to consider cases construing
    similar statutes, to apply the insurer's lien to damages for
    pain and suffering.    See United States v. Lorenzetti, 
    467 U.S. 167
    , 174 (1984) (discussing Federal Employees' Compensation
    Act); Hendry v. Industrial Comm'n, 
    112 Ariz. 108
    , 109 (1975),
    cert. denied, 
    424 U.S. 923
    (1976); Dearing v. Perry, 
    499 N.E.2d 268
    , 270 (Ind. App. Ct. 1986); Perry v. Hartford Acc. & Indem.
    Co., 
    481 A.2d 133
    , 137-138 (Me. 1984); Tarr v. Republic Corp.,
    
    116 N.H. 99
    , 103-105 (1976); Bello v. Commissioner of the Dep't
    of Labor & Indus., 
    56 N.J. 41
    , 44-45 (1970).    The analysis in
    each of those cases, however, is compelled by the particular
    language of the statutes at issue, which are not identical to
    § 15 in material respects.    In particular, unlike G. L. c. 152,
    § 15, none of the statutes in the cited out-of-State cases
    limits both the meaning of "injury" to "injury for which
    compensation is payable" and the insurer's lien to "payment for
    the injury." 10   Our conclusion, no less than those in the cited
    cases, is compelled by the statutory text.
    10
    See 5 U.S.C. § 8132 (2012) (describing "injury or death
    for which compensation is payable" but requiring that employee
    "shall refund to the United States the amount of compensation
    paid by the United States" without using term injury); Ariz.
    15
    The view we take of the statutory language is also
    "consistent with the intent of the Legislature" in enacting the
    "workers' compensation" scheme.   See Neff v. Commissioner of
    Dep't of Indus. Accs., 
    421 Mass. 70
    , 76 (1995).   In this regard,
    we are mindful that, while G. L. c. 152 is meant "to protect
    injured workers," see Spaniol's Case, 
    466 Mass. 102
    , 109 (2013),
    § 15 has the additional aim of "reimburs[ing] the workers'
    compensation insurer and . . . prevent[ing] the employee's
    double recovery."   See Lane v. Plymouth Rest. Group, 
    440 Mass. 469
    , 472 (2003), citing Rhode v. Beacon Sales Co., 
    416 Mass. 14
    ,
    17 (1993), Eisner, supra at 131, and Richard v. Arsenault, 
    349 Mass. 521
    , 524 (1965).   Our construction of § 15 as excluding
    damages for pain and suffering from the insurer's lien neither
    Rev. Stat. § 23-1023 (2015) (insurer "shall have a lien on the
    amount actually collectible from such other person to the extent
    of such compensation . . . paid"); Ind. Code § 22-3-2-13
    (describing "injury or death, for which compensation is
    payable," but stating that "from the amount received by the
    employee or dependents there shall be paid to the
    [insurer] . . . the amount of compensation paid to the employee
    or dependents" without using term injury); Me. Rev. Stat. Ann.
    tit. 39, § 68 (repealed 1993) (insurer shall have "a lien for
    the value of compensation paid on any damages subsequently
    recovered against the third person liable for the injury";
    language currently in Me. Rev. Stat. Ann. tit. 39-A, § 107
    [2015]); N.H. Rev. Stat. Ann. § 281:14 (repealed 1989)
    (describing "an injury for which compensation is payable," but
    requiring that insurer shall have "a lien on the amount of
    damages . . . recovered by the employee" without using term
    injury; language currently in N.H. Rev. Stat. Ann. § 281-A:13
    [2015]); N.J. Stat. Ann. § 34:15-40(b)-(c) (2015) (insurer
    "shall be entitled to be reimbursed . . . for the medical
    expenses incurred and compensation payments theretofore paid to
    the injured employee").
    16
    impinges on the insurer's right to "reimbursement" nor permits
    employees a double recovery.
    An insurer "cannot be reimbursed for something that it did
    not pay" (emphasis added).    Vellucci v. Miller, 
    989 F. Supp. 2d 211
    , 215 (D.R.I. 2013) (citing Massachusetts workers'
    compensation statute to support conclusion that, under similarly
    worded Rhode Island workers' compensation statute, insurer
    cannot recover from employee's pain and suffering award).    See
    G. L. c. 152, § 15 ("insurer is entitled [to lien on] settlement
    by way of reimbursement" [emphasis supplied]).    The insurer here
    did not compensate the employees for their pain and suffering,
    and so cannot seek "reimbursement" from damages paid for those
    harms.   Cf. Oliveira v. Pereira, 
    414 Mass. 66
    , 73-74 (1992)
    (noting, in context of different statute, that "to be
    reimbursed, the plaintiff must have paid the sum due").    On the
    other hand, the insurer may -- and, pursuant to the settlements
    at issue here, will -- recover payments for harms that are
    covered by the workers' compensation statute, such as lost wages
    and medical expenses.
    That the employees will receive both workers' compensation
    benefits and damages for pain and suffering does not constitute
    a proscribed "double recovery."    See Lane v. Plymouth Rest.
    Group, supra at 472.    "In determining whether an employee has
    received double recovery, we do not focus on the dollar amounts
    17
    recovered, but upon the nature of the injury asserted."    Eisner,
    supra at 132.   In other words, the goal of § 15 is not to return
    to the insurer the full dollar amount paid to an employee, but,
    rather, to avoid having an employee collect both benefits and
    damages for the same harm.   Here, the employees recovered
    separately for two separate harms:    from the insurer, workers'
    compensation benefits covering lost wages and medical expenses;
    and from the third-party defendants, damages for pain and
    suffering.
    We also note that, like G. L. 152 as a whole, § 15 is
    designed to minimize tort litigation, see Estate of Moulton v.
    Puopolo, 
    467 Mass. 478
    , 483 (2014), and, thereby, to achieve
    "certainty and relative administrative convenience."    Bongiorno
    v. Liberty Mut. Ins. Co., 
    417 Mass. 396
    , 402 (1994).    Our
    conclusion furthers this legislative goal by giving employees
    incentive to compromise their claims even where they receive a
    settlement offer that does not yield an "excess" recovery.    See
    G. L. c. 152, § 15 (exempting "excess" recovery from insurer's
    lien).
    Finally, we emphasize that this result will not deprive an
    insurer of its reimbursement rights where an employee and a
    third-party defendant reach a settlement that would "stack the
    deck" against the insurer by inappropriately allocating the bulk
    of damages to pain and suffering.    Section 15 precludes such a
    18
    result by requiring that all settlements be approved by the
    board or reviewing board of the Department of Industrial
    Accidents or by a judge after a hearing at which the insurer has
    a right to participate.    See G. L. c. 152, § 15.   Moreover, a
    settlement amount allocated entirely or in large part to pain
    and suffering will "be eyed by the court with a healthy dose of
    skepticism."   Hultin v. Francis Harvey & Sons, Inc., 40 Mass.
    App. Ct. 692, 699 (1996).
    3.   Conclusion.   The judgment denying the appeal of the
    settlement in DiCarlo's case is reversed, and the matter is
    remanded to the Superior Court for further proceedings
    consistent with this opinion.    The judgment approving the
    settlement in Martin's case is affirmed.
    So ordered.