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2004 SESSION

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SB 558 Workers' compensation; lien by employer on settlement or verdict.

Introduced by: Thomas K. Norment, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Workers' compensation; lien by employer on settlement or verdict. Provides that an employer's payment of workers' compensation benefits creates not only a subrogation interest, but an actual lien against any proceeds obtained by verdict or settlement from a third party or recovered pursuant to the uninsured or underinsured motorist provisions of a motor vehicle insurance policy carried by the employer. Under current law, the employer has a subrogation interest in a recovery by the employee against a third party that it must enforce independently or perfect prior to verdict. The bill also provides that where the employer must sue to recover on its lien, it is not required to pay any share of the reasonable expenses and reasonable attorney's fees associated with that portion of its lien that is not preserved. This bill is identical to HB 864.

SUMMARY AS PASSED SENATE:

Workers' compensation; lien by employer on settlement or verdict. Provides that an employer's payment of workers' compensation benefits creates not only a subrogation interest, but an actual lien against any proceeds obtained by verdict or settlement from a third party or recovered pursuant to the uninsured or underinsured motorist provisions of a motor vehicle insurance policy carried by the employer. Under current law, the employer has a subrogation interest in a recovery by the employee against a third party that it must enforce independently or perfect prior to verdict. The bill also provides that where the employer must sue to recover on its lien, it is not required to pay any share of the reasonable expenses associated with that portion of its lien that is not preserved.

SUMMARY AS INTRODUCED:

Workers' compensation; lien by employer on settlement or verdict. Provides that an employer's payment of workers' compensation benefits creates not only a subrogation interest, but an actual lien against any proceeds obtained by verdict or settlement from a third party or recovered pursuant to the uninsured or underinsured motorist provisions of a motor vehicle insurance policy carried by the employer. Under current law, the employer has a subrogation interest in a recovery by the employee against a third party that it must enforce independently or perfect prior to verdict. The bill also provides that where the employer must sue to recover on its lien, it is not required to pay the employee's cost of defending the suit.