Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney for advice on your specific situation.
Detailed Answer
Under Mississippi law, an employer or its workers’ compensation insurer that pays benefits has a statutory lien on any settlement, judgment or award the injured worker recovers from a third party. This lien is governed by Miss. Code Ann. § 71-3-33 (link).
Here are the key steps to resolve the lien:
- Identify and document the lien amount. Request a statement of benefits paid or payable from the employer or insurer. Verify all medical bills, wage loss benefits and other outlays covered by workers’ compensation.
- Notify all parties. Serve written notice of the intent to settle the personal injury claim on the employer’s insurer to preserve their lien rights.
- Negotiate the lien. Discuss the percentage or dollar amount the insurer will accept. The insurer may agree to reduce the lien to account for attorneys’ fees and costs under Miss. Code Ann. § 71-3-37 (link).
- Confirm agreement in writing. Draft a stipulation or settlement agreement detailing the agreed lien amount, payment terms and confirmation that the insurer’s lien will be satisfied upon payment.
- Obtain court or Commission approval if required. While Mississippi courts typically honor written lien agreements, parties in complex or contested cases may seek an order from the circuit court or approval from the Mississippi Workers’ Compensation Commission to eliminate future disputes.
- Allocate proceeds and satisfy the lien. At settlement or judgment, distribute the proceeds by paying the workers’ compensation lien first, then attorneys’ fees and litigation costs, and finally the claimant. File a satisfaction of lien with the court to release any further claim on the recovery.
Failing to resolve the workers’ compensation lien can lead to duplication claims or litigation. Following these steps ensures a clear path to settlement and distribution of funds.
Helpful Hints
- Gather detailed compensation records early to avoid surprises at settlement.
- Factor in attorneys’ fees and costs when negotiating lien reductions.
- Keep all communications in writing to document consent and terms.
- Consult an attorney experienced in coordinating personal injury and workers’ compensation claims.
- Review and track any deadlines under the Mississippi Workers’ Compensation Act to preserve lien and settlement rights.