Note I do not practice workers' compensation law.
Your friend has it completely backward. If the parties do not settle, there will be a hearing that will resolve the case. If parties settle, there will not be a hearing because the case was resolved by the settlement.
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The Judge might continue the case to another date if all necessary medical reports are not available, or someone's deposition is required. This is to make sure that there is proper evidence to make a decision, but the Judges are usually not happy when parties come in without all the evidence. It is unlikely that the Judge will deny you a Trial, but more likely that it will take 2 or 3 appearances to see a Court Reporter. There are usually 6-8 Trials on any given day, and only time for 1 or 2. That frustrates everyone involved.
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I will assume that your case is well established and in the final stages. Regardless, you have a right to a hearing or trial if both parties are unable to reach a settlement agreement. The attorneys involved must have collected relevant evidence that points to the issues at hand. In order to have a trial the discovery process (gathering of evidence) needs to be completed prior to the trial. This would include some form of collecting medical reports, taking of depositions, QME or AME reports, etc. If the parties are not ready than either party may request the judge to take the case off calendar until the parties are ready. You cannot be denied your day in court.
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