Disclaimer: This article provides general information under Montana law. It does not constitute legal advice.
Detailed Answer
When you receive workers’ compensation benefits for a workplace injury and then pursue a third-party personal injury claim, the workers’ compensation insurer gains subrogation rights and a statutory lien. Montana law governs how to satisfy that lien under Mont. Code Ann. §39-71-2408 and §39-71-414.
- Identify the lien. Review your comp file and the insurer’s notice to confirm their payment amount and lien rights under Mont. Code Ann. §39-71-414.
- Include the lien in your claim. Disclose the comp insurer’s lien in your pleadings and during settlement negotiations. This prevents surprises later.
- Calculate the recoverable amount. Montana law limits the lien to the net recovery after reasonable attorney fees and litigation costs. Confirm the formula with your attorney.
- Notify the workers’ compensation insurer. Before finalizing your settlement, send a written notice of your third-party recovery and proposed allocation to the comp insurer. Allow them at least 30 days to respond.
- Obtain a lien waiver or satisfaction. Request a formal settlement approval and lien waiver from the comp insurer. They may issue a lien satisfaction letter once they agree on the amount due.
- Allocate settlement funds. Place the comp lien portion in escrow or direct payment to the insurer. Then distribute your net recovery per your settlement agreement.
- File a lien satisfaction with the Workers’ Compensation Court. After you satisfy the lien, file proof of payment or a joint stipulation to close out the lien in your comp case.
- Obtain a final order. Request the Workers’ Compensation Court issue a final order confirming the lien is satisfied and closing your comp claim.
Following these steps helps prevent disputes and ensures you comply with Montana’s lien laws.
Helpful Hints
- Keep detailed records of all comp benefits, medical bills, and communications.
- Consult with an attorney experienced in both workers’ compensation and personal injury law.
- Monitor statute-of-limitations deadlines for your third-party claim.
- Ensure your attorney’s fee agreement aligns with lien calculation rules.
- Consider mediation with the comp insurer to expedite lien resolution.