In July 1983, Graham filed an application with the Board for the adjudication of his claim for medical treatment and permanent disability benefits. Graham also filed a civil action against Dr. Peter Macs (later amended to the Estate of Macs) seeking damages for medical malpractice in Dr. Macs's treatment of Graham for the injuries he sustained in the bus accident. The Transit District then petitioned for credit, in the amount of the settlement, against the Transit District's liability for future workers' compensation payments to Graham. Graham filed a petition for reconsideration with the Board on the ground that the malpractice settlement was not subject to credit. 5 [2b] Graham counters that the conditions for invoking the statute were met in this case where counsel acknowledged in settlement discussions that Graham was entitled to workers' compensation benefits and did not include such benefits in computing the settlement.

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