Workers’ Comp and Third Party Claims

Arizona Workers’ Compensation law prevents injured workers from suing their employer or co-workers for an injury at work. Many folks assume that they are not entitled to a civil action because they are receiving workers compensation from their employer, but that it not always the case. Injured workers may be entitled to a civil action against a third party (someone other than your employer or co-worker) when the third party was responsible for causing your injury.

Although third party claims vary from case-to-case, there are general rules that need to be considered to successfully recover. These rules are important because workers’ comp may not always fully compensate the harm you have suffered, and a third party claim might be your only chance of being fully compensated.

Many rules govern workers’ compensation and third party claims. However, the rules below are some very important rules you should be aware of if you intend to make a third party injury claim for an on the job injury.

• Deadline to file claim – if you are entitled to workers’ comp benefits, the deadline for filing a claim against a third party is one year after the accident that caused the injury. Once this deadline passes, the right to file a claim is assigned to the insurance carrier. Under certain circumstances you may be able to have the claim re-assigned back to you by the workers compensation insurer, but this may not be possible in all cases. Therefore, it is very important to take the steps necessary to pursue a third party claim within the first year following the accident.

• Notice – the injured worker is required to provide written notice to the insurance carrier of their intent to bring a claim against a third party. In addition, the injured worker is also responsible for providing the insurance carrier with timely notice of all of the pleadings, and rulings regarding the status of the action.

• Settling claims – when settling a claim with a third party, you must obtain the workers compensation insurer’s written consent before settling, failing to do so may jeopardize your right to workers compensation benefits in the future.

• Settlement liens – if you settle a claim with a third party, the workers compensation insurer might be entitled to a lien against your recovery from the third party. If this is the case, the insurer is entitled to a lien against “compensation, and medical, surgical and hospital benefits.”[i] It is important to note that an insurer cannot recover for any administrative expenses or the cost of an IME (independent medical examination) from a settlement lien.

Sebastian Brugliera, Esq.

Being aware of these rules will help your chances to recover in a civil action against a third party. We understand that remembering all of the rules can be quite difficult and there may be other rules, and shorter time limits that apply in some cases. Contact Taylor & Associates to help make this difficult process as easy as can be. Our attorneys are experienced, and will assure that your claim is properly handled.

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[i] Ariz. Rev. Stat. § 23-1023(C)