Detailed Answer
Workers’ compensation insurers hold a statutory lien on any personal injury settlement that arises from a work-related injury. The lien lets the insurer recover medical and wage-loss benefits paid on the claim. See Mont. Code Ann. § 39-71-414.
- Obtain the lien notice Ask the insurer for a detailed statement of benefits paid. This document confirms the lien amount and claim details.
- Verify lien validity Confirm that the insurer processed a valid workers’ compensation claim and served notice on all liable parties under Montana law.
- Review the lien amount Check each medical expense, wage-loss payment, and any allowable interest or fees. Ensure the insurer calculated amounts correctly.
- Allocate your settlement Work with your attorney to divide your settlement into past medical, future medical, wage loss, and pain and suffering. Montana law limits the lien to amounts paid under Mont. Code Ann. § 39-71-414.
- Negotiate with the insurer Highlight any disputed charges or benefit periods. Negotiate a fair lien reduction if errors or duplications appear.
- Discharge the lien Pay the agreed amount directly to the insurer at closing or use an escrow holdback. Obtain a written lien release or waiver.
- Document the release File the lien release with the court or add it to your settlement file. This clears any future liability on the same claim.
Disclaimer: This article provides general information under Montana law. It does not constitute legal advice. Consult an attorney about your specific circumstances.
Helpful Hints
- Keep a complete record of all benefit statements and lien communications.
- Request written confirmation of lien discharge before finalizing your settlement.
- Review the full text of Mont. Code Ann. § 39-71-414 online.
- Use an escrow account to hold lien funds until all parties approve their release.
- Ensure your settlement agreement clearly addresses subrogation and lien issues.