June 2013
Intervention Now Mandatory In Mississippi Workers' Compensation Subrogation
The Mississippi Supreme Court recently dropped a bombshell and announced that in order to be reimbursed for its statutory workers’ compensation lien, a workers’ compensation carrier or employer must intervene into the third-party action. Liberty Mutual Ins. Co. v. Shoemake, 2013 WL 1831793 (Miss., May 2, 2013). If it does not do so, its subrogation claim is waived.
Federal Court Decision Questions Right of ERISA Plan To File Subrogation Suit
A 2012 Texas federal court decision has brought into focus the ability of an ERISA Plan to file a state subrogation tort action. While dealing specifically with a Contribution of Benefits issue, the federal court decision in Central States v. Health Special Risk, Inc., 2013 WL 2656159 (N.D. Tex. 2013) has given ammunition to anti-subrogation elements claiming that an ERISA Plan has no right to file a subrogation suit, no matter what the Plan language says.
Delaware Limits Workers' Comp Subrogation Against UM/UIM Benefits
On March 19, 2013, the Delaware Supreme Court examined sloppy amendments the Delaware Legislature made to § 2363 back in 1993 and formally announced for the first time that a workers’ compensation carrier is not subrogated to uninsured/underinsured motorists (UM/UIM) benefits, regardless of whether or not the UM/UIM policy insures the employee or employer. One of the biggest problems we experience in our state Legislatures is the sloppy drafting of laws by inexperienced non-lawyers who do not think about the ramifications of the words they use. The 1993 amendments are a prime example.