Kroemer v. Omaha Track Equipment, LLC

Norman Kroemer, an employee of Ribbon Weld, LLC sustained an eye injury in connection with the use of Omaha Track Equipment, LLC’s (OTE) tools. Kroemer and Ribbon Weld entered into a compromise lump-sum settlement for $80,000. After payment of the lump sum, Ribbon Weld’s subrogation interest totaled just over $200,000. Kroemer then sued OTE and Ribbon Weld. Kroemer and OTE engaged in mediation to settle the third-party claim and ultimately negotiated a compromise settlement of claims in the amount of $150,000. The district court determined that the settlement was reasonable and allocated $0 to Ribbon Weld. The Supreme Court affirmed in part and in part reversed and remanded, holding (1) the district court’s approval of the settlement was not an abuse of discretion under the circumstances; but (2) the district court did abuse its discretion in not allocating any of the settlement proceeds to Ribbon Weld. View "Kroemer v. Omaha Track Equipment, LLC" on Justia Law