• Workers’ Compensation Insurer’s Subrogation Lien on Settlement Proceeds Can Be Reduced by Employer’s Percentage of Fault
  • September 25, 2017 | Author: Eileen Dennis GilBride
  • Law Firm: Jones, Skelton & Hochuli, P.L.C. - Phoenix Office
  • An injured worker who accepts workers’ compensation cannot sue his employer. If the worker obtains settlement funds from a third party, the workers’ compensation carrier may obtain a lien on that recovery to the extent of the benefits paid to the worker. The Court of Appeals held today that if the worker’s settlement with the third party is for an amount less than that third party’s insurance limits, the worker may obtain a judicial determination of whether the carrier’s lien should be reduced to account for the employer’s comparative fault. The carrier’s lien on a settlement may be apportioned in this way as long as the worker’s damages and the employer’s comparative fault are determined in a fair proceeding between the employee and employer/carrier.