Arizona Allows Court To Reduce Workers’ Compensation Lien On Third-Party Settlement Due To Employer Fault

In May 2016, we published an article listing the ten best and the ten worst states for subrogating workers’ compensation. Arizona was near the top because it didn’t allow reduction of the carrier’s lien for attorneys’ fees and provided for reimbursement of the carrier “off the top” of a third-party recovery. It didn’t make the…

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North Dakota Fights Back Against Workers’ Compensation Subrogation Obstacles In Anti-Subrogation States

Plaintiff-friendly judges and legislators in various states have gained strength and influence over the last twenty years, resulting in statutes and court decisions inimical to the subrogation and reimbursement rights of workers’ compensation carriers. North Dakota is fighting back. On March 13, 2017, the North Dakota legislature amended § 65-01-09, North Dakota’s workers’ compensation subrogation…

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Nebraska Supreme Court Provides Valuable Clues To “Fair And Equitable” Distribution Of Recovery Under § 48-118(2)

Nebraska has recently become a battleground in the war against workers’ compensation subrogation being waged by trial lawyers. Nebraska is a “tweener” when it comes to workers’ compensation subrogation. It doesn’t provide a carrier with a first money right to recovery of third-party proceeds, as most states do, but neither does it employ a version…

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Ohio Court Allows Workers’ Compensation Subrogation Reimbursement From Employer For Intentional Act

Words matter. On May 22, 2017, the Ohio Court of Appeals paid attention to the specific wording in the Workers’ Compensation Act and ignored the traditional definition given to the term “third party” in workers’ compensation subrogation settings. In McKinney v. Omni Die Casting, Inc., 2017 Ohio – 2949 (Ohio App. 2017), it held for…

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Pennsylvania Court Confirms Compensation Carrier Can Initiate Filing Of Third-Party Action

A long-standing controversy has been resolved and a major anti-subrogation obstacle in Pennsylvania has been overcome. The proverbial light bulb has gone on in the Quaker State. The ongoing debate in Pennsylvania over whether a workers’ compensation carrier can initiate the filing of a third-party lawsuit is finally over. The answer is “yes” and we…

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Pennsylvania Creates New Opportunity For Employees To Gerrymander Third-Party Settlements

Serrano v. Workers’ Comp. Appeal Bd. (Ametek, Inc.), 2017 WL 563317 (Pa. Comm. 2017). On March 6, 2006, a container of metal powders, with which Serrano was working, exploded, severely burning him. Serrano sued Aramark Uniform and Career Apparel, Inc. (Aramark), which had provided the flame-resistant coveralls Serrano had been wearing at the time of…

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Questionable Hawai’i Court of Appeals Decision Creates Interesting Workers’ Compensation Subrogation Opportunities

If a contest were held for the worst appellate decision of 2017, we might already have a winner. The recent unpublished Hawai’i Court of Appeals decision in Hawaiian Dredging Constr. Co., Inc. v. Fujikawa Assocs., Inc., 2017 WL 663540 (Haw. App. 2017) turns the very concept of workers’ compensation in the Aloha State upside down,…

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Nebraska Supreme Court Sidesteps Issues Of Future Credit And Made Whole Doctrine In Workers’ Compensation Subrogation

Trial lawyers in Nebraska had high hopes that a questionable Court of Appeals decision from early 2016 might reinject the equitable Made Whole Doctrine into Nebraska workers’ compensation subrogation and eliminate any right of the carrier to a future credit whenever the injured employee files and pursues a third-party action. On December 16, 2016, the…

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