Worker’s Compensation Third Party Cases
Worker’s compensation benefits alone are usually not sufficient to compensate for a serious injury. Anyone receiving worker’s compensation insurance benefits should check to see if there is a possibility of also recovering from a third party. Not only does recovering from a third party allow the injured worker the possibility of recovering from an additional source, but is also frequently creates an opportunity to obtain far more money damages than just worker’s compensation benefits alone.
The employer and its employees are a “first party.” If the employer is a “subscriber” to the Texas Workers Compensation Commission, then the injured worker’s only remedy against the employer is through worker’s compensation. If the employer is not officially a subscriber to the Texas Worker’s Compensation System, then a non-subscriber case can be brought directly against them. Running a check though the Texas Department of Insurance is the best way to verify whether an employer is truly a “subscriber.” Although we do not suggest than anyone assume that just because their employer says that they are providing “workers compensation benefits” that the employer is truly a subscriber. However, in case they are, the remainder of this page discusses the options available to the injured worker.
Injured persons can recover money from third parties. “Third party” simply means anyone other than the injured person’s employer or its employees. This can be a variety of different folks, from contractors, safety personnel, product manufacturers, etc. Identification of a responsible third party can in some situations require the assistance of a lawyer and investigators. Many people frequently, but incorrectly, think that their co-worker, who is an employee of their employer, is a third party. This is not the case. Employees of the injured worker’s employer are not a third party.
In cases in which there is a third party that is partially or completely at fault, even if the worker is receiving workers compensation benefits, they can still pursue additional money damages against the responsible third party
Unlike workers compensation, an injured worker can recover the following types of money damages: pain, suffering and mental anguish in the past and future, physical impairment in the past and future, future medical expenses, full value of past lost wages, and the full value of loss of future wage earning capacity.
Pursuing a responsible third party is beneficial to the injured worker’s employer. This is because if the injured worker proves that the third party was responsible, then the third party may have to reimburse the employer for a portion of the worker’s compensation benefits that it paid. A common misconception of many injured workers is that their employer will be upset if they pursue obtaining money damages from a third party. Instead, in most situations, nobody is happier than the employer when their employee seeks recovery against a third party. This is because they know that they will be reimbursed for the worker’s compensation that they paid. In fact, in many cases, we have obtained a great deal of assistance from employers because they know that if their employee recovers money from the responsible third party, they will get paid back for the benefits paid to the employee.
Typically, when the employer pays worker’s compensation benefits, they obtain a lien on the employee’s settlement against the third party. All that this means is that the employee is under an obligation to pay back the amount of the lien, minus attorney’s fees and expenses. In Texas, the worker’s compensation lien can automatically be reduced by at least 1/3 for attorney’s fees, as well as a pro-rata share of the expenses incurred by the attorney. In many instances, worker’s compensation subrogation adjusters oppose reduction of their lien, so it is recommended that an experienced personal injury lawyer handle this matter.
Attorney Brian White & Associates have a great deal of experience in investigating and handling workplace injury cases. If you or a loved one has been hurt on the job, contact us today to speak to us about your options.