Disclaimer: This article is for educational purposes and does not constitute legal advice.
Detailed Answer
When a worker in Rhode Island suffers a third-party injury after filing a workers’ compensation claim, the employer (or its insurer) may assert a lien against any recovery from the third party. Resolving this lien involves several key steps under Rhode Island law, primarily governed by R.I. Gen. Laws § 28-33-20. Below is an overview of each step:
1. Identify and Confirm the Lien
Review your workers’ compensation award or payments. The employer’s insurer typically files notice of its lien in the Workers’ Compensation Court docket. Verify the dates benefits were paid and any medical bills covered. Rhode Island law authorizes this lien (R.I. Gen. Laws § 28-33-20).
2. Calculate the Lien Amount
Under the statute, the lien equals the total benefits paid (medical and indemnity) minus reasonable costs of collection. Costs can include court filing fees and legal expenses. Gather medical bills, wage statements, and attorney invoices related to the workers’ compensation claim.
3. Provide Timely Notice
Notify all parties—your personal injury attorney, the third-party insurer, and the employer’s insurer—of the workers’ compensation lien. This notice should include an itemized statement of benefits paid and costs claimed. Timely notice avoids disputes and protects lien rights.
4. Negotiate or Petition for Determination
Many liens resolve by negotiation between your personal injury lawyer and the employer’s carrier. If parties cannot agree, file a petition in the Rhode Island Workers’ Compensation Court to determine the lien amount. The Court holds a hearing, reviews evidence, and issues an order specifying the valid lien amount.
5. Obtain Court Approval and Release Documentation
Once you reach an agreement or Court ruling, obtain a written order or stipulation. This document must be filed with the Workers’ Compensation Court. It releases the lien when you remit payment. Keep copies for your personal injury file and to provide to the third-party insurer.
6. Disburse Funds and Close the Lien
After finalizing your personal injury settlement, allocate the agreed lien portion to the employer’s insurer. Submit payment along with the Court’s release order. Confirm the lien is marked satisfied on the Court docket. This step ensures clear title to any remaining settlement funds.
Helpful Hints
- Start lien resolution early—even before you settle your personal injury claim.
- Keep detailed records of all workers’ compensation benefits and related expenses.
- Consider mediation to resolve disputes faster and avoid Court delays.
- Consult with both a workers’ compensation attorney and a personal injury attorney to protect your rights.
- Confirm the Workers’ Compensation Court docket reflects a satisfied lien after payment.