Can I reopen a settlement under the Defense Base Act?
I was injured, and based on the injury, the American insurance company paid me weekly benefits until settlement. Later, I was informed that the benefits the insurance company paid me for over four years were not calculated according to the law on payment of benefits.
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It sounds like you're in a tough spot, and it's completely understandable that you'd be upset about potentially missing out on a significant amount of money you were owed.
Generally, once a settlement under the Defense Base Act is approved by the Department of Labor, it's considered a final resolution of your claim. This means that, in most cases, it's very difficult to go back and reopen the entire claim. These settlements are meant to be comprehensive — wrapping up all outstanding issues and liabilities for both you and the insurance company — and they’re approved by the DOL specifically to ensure fairness.
However, there are a few narrow circumstances where it might be possible to revisit things or claim additional funds. One is if there was a genuine mutual mistake or a clear error in how the law was applied that wasn’t known or reasonably discoverable at the time of settlement. Another, more serious, would be if there was outright fraud — meaning the insurance company or even your attorney intentionally misrepresented information to cheat you out of benefits.
Your description also raises questions about your previous attorney’s actions. Your attorney had a duty to ensure your benefits were calculated correctly under the DBA. If they failed to do so and that led to your $100,000 loss, you might have a claim for attorney malpractice.
To pursue that, you’d need to show there was an attorney-client relationship, that your attorney was negligent, and that this negligence directly caused your financial harm. Be aware there are strict deadlines (statutes of limitations) for filing malpractice claims, and they vary by state.
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Hello, I am a foreign citizen who worked for an American company in Afghanistan. I was injured, and based on the injury, the American insurance company paid me weekly benefits until settlement. Later, I was informed that the benefits the insurance company paid me for over four years were not calculated according to the law on payment of benefits.
The monetary damage I suffered is approximately $100,000. Can I subsequently claim the lost funds after the settlement, since I did not know?
Lexi, Chatbot
I'm sorry to hear about the situation you're facing. Were you provided with any documentation or information regarding the calculation of your benefits during the settlement process?
Yes, I did from the first day after I reported.
Lexi, Chatbot
Did you sign any agreements or waivers related to the settlement that may impact your ability to claim the lost funds now?
I did sign an agreement where there is a section in the settlement about the benefits.
Lexi, Chatbot
Is there anything else the employment lawyer should know before I connect you? Rest assured they’ll be able to help with your settlement agreement.
Yes
Jon
Hello and thank you for reaching out! I’m Jon, a licensed attorney with over 13 years of experience, and I’m here to help.
I know legal matters can feel overwhelming, but you're in good hands. I’ll do my best to make things clear and provide you with the guidance you need. Let’s work together to find the right solution for your situation.
Jon
How much was the settlement?
For a broken back and PTSD — $173K.
Jon
They offered you $173K? But you stated “The monetary damage I suffered is approximately $100,000.” Could you clarify?
Or do you mean it should be $100,000 more, so $273,000?
I was under the DBA (Defense Base Act). I was receiving benefits for four years during the recovery period until the settlement — and that is where they made a "mistake" with benefits, not with the settlement based on my salary.
Jon
Understood, but are you saying that you were $100,000 short?
They paid me less — 66% of my base pay. They should have paid me 66% of my total salary.
Jon
Understood! I think I have all the information I need, but is there anything else you'd like to add before I get started on your answer? If not, I'll start working on a response for you right away.
I was represented by an attorney from the US, but they did not say anything until it was too late.
Jon
Got it. I just need a few minutes to finish typing out a complete response for you. It won’t take long — about 5 minutes or so.
No problem, Sir. FYI, I am a foreign national — I’m from Bosnia, just so you have the full picture. I do have all supporting documentation.
Jon
It sounds like you're in a tough spot, and it's completely understandable that you'd be upset about potentially missing out on a significant amount of money you were owed.
Generally, once a settlement under the Defense Base Act is approved by the Department of Labor, it's considered a final resolution of your claim. This means that, in most cases, it's very difficult to go back and reopen the entire claim. These settlements are meant to be comprehensive — wrapping up all outstanding issues and liabilities for both you and the insurance company — and they’re approved by the DOL specifically to ensure fairness.
However, there are a few narrow circumstances where it might be possible to revisit things or claim additional funds. One is if there was a genuine mutual mistake or a clear error in how the law was applied that wasn’t known or reasonably discoverable at the time of settlement. Another, more serious, would be if there was outright fraud — meaning the insurance company or even your attorney intentionally misrepresented information to cheat you out of benefits.
Your description also raises questions about your previous attorney’s actions. Your attorney had a duty to ensure your benefits were calculated correctly under the DBA. If they failed to do so and that led to your $100,000 loss, you might have a claim for attorney malpractice.
To pursue that, you’d need to show there was an attorney-client relationship, that your attorney was negligent, and that this negligence directly caused your financial harm. Be aware there are strict deadlines (statutes of limitations) for filing malpractice claims, and they vary by state.
Jon
The biggest hurdles you’re facing are twofold.
First, you signed a settlement agreement outlining the amount you received for your injuries. Settlements are designed to be all-encompassing, and it’s likely that agreement released the insurance company from further liability — including past underpayments — unless there was a specific clause allowing otherwise.
Second, while you didn’t know about the error, the law often considers what you reasonably should have known, especially since you were represented by legal counsel. The DOL’s approval also indicates they believed it was adequate at the time. Overturning that approval would require showing a fundamental error or misrepresentation that wasn’t apparent during review.
Given all this, your next step should be to consult with a new attorney who specializes in Defense Base Act claims or attorney malpractice. They can review your entire file — including your settlement agreement, benefit statements, and correspondence — to determine whether there’s a legal basis to challenge the calculation or pursue a malpractice claim.
I cannot prove it, but it was based on bias… I had a lot of issues during that period.
Jon
While proving bias directly can be very difficult, the crucial point remains whether your weekly benefits were mathematically miscalculated under the DBA. Regardless of bias, if your benefits were based on “base pay” when they should have been on “total salary,” that’s an objective error that can be investigated.
A new attorney can focus on that miscalculation and determine if it’s grounds for a legal mistake or malpractice claim against your previous counsel.
I did report and submit my actual pay stubs. I entered all the necessary data, including average weekly salary, on the report. However, the insurance paid what they paid — that’s why I wasn’t suspicious at the time. First, because of the recovery treatment, and second, I wasn’t aware.
Jon
It’s completely understandable you weren’t suspicious then. Your priority was recovery, and you provided all the correct pay information. The key point is that you supplied the necessary data.
If the insurance company underpaid and your attorney didn’t catch it, that suggests an error or a failure to protect your interests — not a lack of awareness from you. This is precisely why a new attorney should review the calculations against the DBA’s requirements.
Do you have any other questions about the law related to this issue? I’m here to assist.
Jon
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