The Structure of New Mexico’s Workers’ Compensation Subrogation Scheme The structure of New Mexico’s workers’ compensation subrogation scheme is unlike that of many other states, and it creates a vulnerability that subrogation professionals must understand before it is too late. Unlike most states, New Mexico’s workers’ compensation statute, § 52-5-17, gives the injured employee exclusive…
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Workers’ compensation subrogation is always a tricky business, but nowhere is it more bewildering than in Michigan when a work-related injury arises out of a motor vehicle accident. The state’s unique and confounding no-fault system was designed to streamline compensation and reduce litigation, but for carriers attempting to assert subrogation rights, it has produced a…
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Montana’s Harsh History with the Made-Whole Doctrine For decades, Montana has been recognized as perhaps the harshest jurisdiction in the country when it comes to the application of the “Made-Whole” doctrine in subrogation cases. And it stands to reason that the harsh application of this anti-subrogation rule has led to depleted subrogation opportunities and has…
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Progressive Garden State Insurance Company v. Allstate NJ Insurance Company, 2025 WL 2327776 (N.J. Super. August 13, 2025) The Longstanding Debate Over Med Pay Subrogation in New Jersey For years, New Jersey attorneys, insurers, and claims professionals have debated whether Medical Payments (“Med Pay”) benefits in auto insurance policies can be subrogated against third-party tortfeasors.…
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Understanding When HIPAA Applies One of the most common questions in workers’ compensation subrogation practice is whether HIPAA requires a signed release before medical records can be obtained or shared. The short answer is that HIPAA seldom prevents the exchange of records between medical providers and workers’ compensation carriers for the purpose of administering or…
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The Emergence of Tenant Legal Liability Programs A new insurance product has emerged in the multifamily/rental housing industry that could impact insurers’ subrogation rights: Tenant Legal Liability (TLL) insurance and Tenant Liability Waivers are becoming increasingly common as apartment owners seek to ensure coverage for tenant-caused property damage without relying on tenants to directly purchase…
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Why Failing to Intervene Is Risky In the world of workers’ compensation subrogation, what you don’t do can hurt you—and hurt you badly. Nowhere is this more true than in the context of a compensation carrier, its third-party administrator, or its subrogation vendor deciding whether or not to intervene in a pending third-party lawsuit filed…
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When a hot water pipe ruptured in a luxury multi-unit development in New Jersey, it soaked more than drywall and hardwood—subrogation was on everybody’s mind. But things didn’t go according to plan. In 1410 Grand Adams, LLC v. Trematore Construction, LLC, 2025 WL 1742859 (N.J. Super. 2025), a case decided by the New Jersey Appellate…
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Overview In a decision that underscores the destructive power of the Economic Loss Doctrine in New Jersey, the Appellate Division recently dismissed a property insurer’s subrogation action arising from a construction defect. The case, 1410 Grand Adams, LLC v. Trematore Construction, LLC, 2025 WL 1742859 (N.J. App. Div. 2025), reaffirmed that when losses are purely…
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Workers’ compensation laws were born from a grand bargain between employers and employees—a trade-off designed to ensure swift, no-fault benefits for injured workers while protecting employers from unpredictable litigation. In exchange for giving up their right to sue, employees gained access to guaranteed medical care and wage replacement. Employers, in turn, assumed the financial burden…
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