Disclaimer: This article is for educational purposes only. It does not constitute legal advice. Consult an attorney to address your specific situation.
Detailed Answer
Under Mississippi law, when a third party’s negligence causes a workplace injury, you can pursue both workers’ compensation benefits and a personal injury claim. Your workers’ compensation carrier has a statutory right of subrogation under Miss. Code Ann. § 71-3-51 (§ 71-3-51), which allows it to recover benefits it paid out from your third-party recovery.
To coordinate benefits effectively, follow these steps:
- Provide Timely Notice: Notify both the workers’ compensation insurer and the third-party defendant about your intent to file a personal injury claim. Early notice helps avoid disputes and delays.
- Calculate the Insurer’s Lien: Under § 71-3-51, the insurer may recover medical expenses, disability indemnity payments, and certain litigation costs. The lien applies only to your net recovery after deducting attorney fees and court costs. For example, a $100,000 settlement less $30,000 in fees leaves $70,000 subject to the lien.
- Obtain a Written Lien Statement: Before finalizing settlement, request a current lien balance from the insurer. Benefits paid after the statement can increase the lien, so update the figure as needed.
- Structure Your Settlement: Allocate the total recovery among medical treatment, lost wages, and pain and suffering. Proper allocation can reduce the lienable portion, since subrogation applies primarily to compensation-related categories.
- Satisfy the Lien at Closing: Direct the settlement agreement to pay the outstanding workers’ compensation lien first. After the lien is paid, you and your attorney receive the remaining proceeds.
Helpful Hints
- Keep detailed records of all benefits received and expenses paid.
- Request lien confirmation in writing and reconfirm it before closing.
- Negotiate settlement allocations with opposing counsel to limit the lienable portion.
- Consider a structured settlement to earmark funds for future medical care.
- Confirm that your net recovery calculation matches the insurer’s lien claim.
- Maintain open communication with both insurers throughout the process.
- Work with an attorney experienced in Mississippi subrogation law.