The family of Deborah Shank has lost its last chance to stop Wal-Mart Stores from recouping hundreds of thousands of dollars in medical expenses from an accident settlement the Shanks hoped to use for her future care in a nursing home.

Last November, the WSJ reported in a front-page story how the retail giant had sued Deborah Shank�a 52-year-old former Wal-Mart employee left permanently brain damaged from a car accident nearly eight years ago�for the money and won. Like most employee health plans, Wal-Mart's gives it the...