Detailed Answer
Disclaimer: This article is for informational purposes and does not constitute legal advice. Always consult a qualified attorney for guidance about your specific case.
1. Understand Nevada’s Subrogation Framework
Under Nevada law, when an injured worker receives benefits through workers’ compensation, the insurer (or employer) acquires a subrogation lien against any third-party recovery. See NRS 616C.150. Before settling a personal injury claim, you must identify and verify this lien to avoid future disputes or liability.
2. Identify and Request Lien Documentation
Send a written request to the workers’ compensation insurer for a detailed ledger of all benefits paid. Cite NRS 616C.170, which requires the insurer to disclose amounts paid and your right to review records. This document forms the basis for verifying the exact lien amount.
3. Verify and Reconcile the Lien Amount
Compare the insurer’s ledger to your files. Confirm dates and types of benefits (medical, temporary disability, vocational rehabilitation). Look for any overpayments, credits or duplications. Keep detailed notes of any discrepancies and follow up promptly in writing.
4. Evaluate Possible Reductions
Under equitable subrogation principles, Nevada courts may reduce a lien where the worker’s third-party recovery disproportionately covers attorney fees and litigation costs. Be prepared to negotiate or petition the court for apportionment if the lien seems excessive. See NRS 616C.150.
5. Negotiate a Lien Settlement
Engage with the insurer early. Propose a lump-sum or percentage of the total recovery to resolve the lien. Document all offers and counteroffers. A written agreement outlining the amount, payment terms, and mutual releases will prevent post-settlement claims.
6. Structure the Settlement and Closing Documents
When drafting the release and settlement agreement:
- Include a specific provision allocating funds to satisfy the workers’ comp lien.
- Hold back lien funds in escrow until you receive a signed lien release.
- Ensure closing documents reference Nevada’s subrogation statutes to show compliance.
7. Satisfy the Lien and Obtain Release
Upon funding the settlement, pay the agreed lien amount directly to the insurer. Request a notarized release of lien. File the release with the court handling your personal injury case to clear title and prevent future claims.
8. File a Notice of Satisfaction
After receiving the release, file a “Notice of Satisfaction” in the civil docket. This formal step closes the lien and provides public record that your settlement fully addressed the workers’ compensation subrogation claim.
Helpful Hints
- Start lien verification early to avoid settlement delays.
- Keep clear, organized records of all communications with the insurer.
- Consider hiring counsel experienced in Nevada subrogation law.
- Use an escrow arrangement to hold lien funds until release.
- Double-check statute citations and compliance with NRS 616C.150.
- Maintain copies of all paid invoices and release documents.