Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney to discuss your specific circumstances.
Detailed Answer
In Nevada, when you file a workers’ compensation (WC) claim and later pursue a personal injury claim against a third party, the workers’ compensation insurer may assert a lien on any recovery. Under Nevada law, insurers have subrogation rights to recoup payments they made for medical treatment and disability benefits.
Key Nevada statutes governing WC liens include:
- NRS 616C.215: Establishes the insurer’s right to be reimbursed from third-party recoveries.
- NRS 616C.220: Defines the form and content of the lien notice the insurer must provide.
- NRS 616C.390: Sets procedures for enforcing liens and resolving disputes.
Here’s how a lien typically affects your settlement:
- Notification: The insurer files a lien notice detailing benefits paid and the total amount due.
- Settlement Drafting: Your settlement agreement should reference the lien and outline how it will be satisfied.
- Allocation of Funds: Nevada allows deduction of a proportionate share of attorney fees and costs from the lien amount (NRS 616C.215(2)), so you don’t pay the full lien on gross recovery.
- Net Recovery: After paying the adjusted lien, attorney fees, court costs, and other expenses, the remainder goes to you.
- Disputing the Lien: If you believe the lien is excessive or covers unrelated expenses, you can petition the Workers’ Compensation Appeals Board under NRS 616C.390.
Example Workflow:
Imagine you suffered a work-related back injury. Your employer’s insurer paid $30,000 in medical and temporary disability benefits. You then settle a third-party negligence claim for $100,000. The insurer’s lien notice claims $30,000 plus costs. Your attorney negotiates down the lien by allocating one-third of attorney fees against the lien. If fees are $25,000, that reduces the lien by $8,333 (one-third of fees). You would pay the insurer $21,667, attorney fees to your lawyer, and receive the balance.
Helpful Hints
- Request a detailed lien itemization to confirm amounts charged.
- Negotiate lien reductions by allocating attorney fees and costs.
- Include lien resolution terms in your settlement agreement.
- File any lien dispute petitions promptly with the WC Appeals Board.
- Work with an attorney familiar with Nevada WC subrogation rules.