How Personal Injury Attorneys Can Handle On-the-Job Injury Referrals and Third-Party Claims
Many cases vetted by our firm are referred to us by fellow members of our legal community, attorneys and staff that do not handle workers compensation claims or problems as a matter of course. Often times an intake staff member, as soon as they hear a person was injured while on the job, will refer said person to our firm. It is important however to note that, while not common, said referrals will sometimes have been injured by a negligent third party while in the course of their employment.
Identifying Overlapping Workers’ Compensation and Third-Party Negligence Claims
The classic example we like to give is a FedEx driver who is negligently rear ended by a regular every day driver. Said FedEx driver would have a workers compensation claim but would also have a third party claim against the negligent driver. When we receive these types of referrals we will vet the workers compensation claim and refer the third party claim back to who ever sent the person to us.
Workers’ Compensation Liens in Arizona: What Personal Injury Lawyers Need to Know
There is an entire seminar put on by the Arizona Association for Justice regarding liens. We sometimes present at said seminar. This page is meant to be a resource for you throughout the rest of the year.
The FedEx driver discussed above, if he were to pursue a third party claim, there would be an automatic, statutory lien, against the recovery on said third party claim, be it settlement or judgement. This attachment occurs as a result of A.R.S. 23-1023.
Arizona Revised Statute § 23-1023 and Automatic Workers’ Compensation Liens
“If the employee proceeds against [the negligent third party] compensation and medical, surgical and hospital benefits shall be paid as provided in this chapter and the insurance carrier or other personal liable to pay the claim shall have lien on the amount actually collectable from the other person to the extent of such compensation and medical, surgical and hospital benefits paid. This lien shall not be subject to a collection fee. The amount actually collectable shall be the total recovery less the reasonable and necessary expenses including attorneys fees.”
The One-Year Deadline That Can Cost Your Client a Third-Party Claim
Now one of the most important things for you to note is that this injured worker or FedEx driver only has one year to pursue his third party negligence claim. If he or she does not pursue the claim during that time period, the right to pursue said claim is automatically assigned to the workers compensation insurance carrier instead of your client. It is critical to calendar this one-year deadline, as it differs from the standard two-year statute of limitations most personal injury attorneys track.
Reassignment of Third-Party Claims After the One-Year Workers’ Compensation Deadline
As the one-year mark approaches, you can obtain a written reassignment of the claim from the carrier, effectively restoring the right to your client and preserving the additional year.
How to Request, Review, and Challenge a Workers’ Compensation Lien Itemization
As settlement approaches—whether in the first or second year—you will want to confirm the workers compensation lien amount. This lien is automatic. The lien amount is obtained by requesting an itemization of medical and indemnity payments from the workers compensation insurance adjuster.
What Expenses Are Reimbursable in a Workers’ Compensation Lien
The carrier is only entitled to reimbursement for medical expenses and lost wage payments. Carefully review the itemization for improper charges such as legal fees, nurse case management, IMEs, or other non-recoverable costs.
When a Workers’ Compensation Lien Attaches and How Settlement Credits Work
With a proper itemization in hand, you can confidently move toward settlement. A common question is when the lien actually attaches. The lien attaches at the time of settlement.
For example, if a case settles for $90,000, the attorney fee is $30,000, and the workers compensation lien is $40,000, the client receives $20,000. The carrier then receives a credit for the $20,000 paid to the client.
Protecting Personal Injury Attorneys From Post-Settlement Lien Claims
It is the workers compensation carrier’s responsibility to pursue this credit. If the carrier fails to do so and continues paying benefits, it cannot later demand repayment from the attorney or client post-settlement. We have seen such attempts fail.
UM and UIM Recoveries Are Not Subject to Workers’ Compensation Liens
In many cases, the recovery includes both third-party insurance proceeds and UM/UIM benefits. It is important to note that UM/UIM payouts are not lienable under A.R.S. § 23-1023. (Citation pending)
A Trusted Workers’ Compensation Resource for Arizona Personal Injury Lawyers
Workers’ compensation liens are complicated, and mistakes can be costly. If you would like us to provide lunch-and-learn CLE training for your firm, we would be happy to help. We are also available as an ongoing resource by email.
Nick Wearne – Nick@workinjuryaz.com
Brian – Brian@workinjuryaz.com
Please contact Arizona’s Work Injury Firm today!
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This Firm Stands Up for Working Families
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In An Accident At Work
” Alex Carpio has been my attorney since the beginning in August of 2012. I was in an accident at work and I explained everything. At that point he said: “We’re going to continue & we’re going to go on with this because you do have a case.” I would recommend Alex Carpio very highly. He’s a great gentlemen and he listens.”
Arizona Workers Compensation Results
“I was injured on 10-1-2010. During that time I was in so much pain. I was really happy that I was able to find Arizona’s Work Injury Firm. If you look at my file I’ve over 3.5 years of paperwork. There’s no way that I would have been able to handle it on my own. They reminded me when I was supposed to go to court and took care of all the legal proceedings.”
We Recommend This Firm To You
“Hello, my name is Jorge Ramirez and my lawyer was Alex Carpio. He is a really good lawyer and I would recommend him to a lot of people. Arizona’s Work Injury Firm, have been very professional for me and my wife. Thank you Alex Carpio.”
At Arizona’s Work Injury Firm, we don’t identify you by your injury or your claim. We recognize you by name and by face. You have an important life with people who look up to you and depend on you. We treat you with that same respect. We will work with you on your Workers’ Compensation or Social Security Disability claims, helping you secure the benefits you deserve; affording you dignity today and hope for the future.