Disclaimer: This article is for informational purposes and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
Under Connecticut law, an employer or its insurer may assert a lien on any recovery you obtain from a third party in a personal injury case. That lien arises under Conn. Gen. Stat. §31-293 (link). To verify and satisfy this lien when negotiating or finalizing a settlement, follow these key steps:
- Confirm the Lien Right
Review Conn. Gen. Stat. §31-293 to understand that your employer’s insurer has a subrogation right against any third-party recovery. Any settlement, judgment or arbitration award may trigger the lien. - Request a Written Lien Statement
Ask the insurer for a detailed statement of sums paid (medical, indemnity, interest, administration). This statement should itemize each category and reflect any credits. Having a clear breakdown prevents later disputes. - Verify the Amount Owed
Compare the insurer’s statement with your own records. Confirm payments for medical treatment, temporary and permanent disability benefits, and any accrued interest. Adjust for any advances or credits to avoid overpaying. - File a Settlement Petition with the Commission
Under Conn. Gen. Stat. §31-301a (link), you must submit a petition for approval of the proposed settlement to the Workers’ Compensation Commission. Include: - The full settlement agreement or release
- The insurer’s lien statement
- A proposed allocation showing how much of the gross recovery will satisfy the lien, pay attorney’s fees, and go to the claimant
- Obtain Approval from the Workers’ Compensation Commission
The Commission reviews the petition to ensure the lien is satisfied fairly and attorney’s fees are reasonable. Once approved, the Commission issues an order or clearance letter authorizing disbursement. - Allocate and Disburse Funds
At closing, allocate the gross settlement to: - First, satisfy the full lien amount (including any approved interest or fees)
- Second, pay attorney’s fees and litigation costs as approved by the Commission
- Third, distribute the remaining balance to you, the injured worker
Helpful Hints
- Act early: Perfect the lien and file your petition at least 30 days before any hearing to avoid delays.
- Keep accurate records of all workers’ compensation payments and medical bills to spot discrepancies.
- Negotiate disputed lien amounts with the insurer before filing your petition; the Commission can resolve remaining disputes.
- Confirm the Commission’s procedural deadlines and fee guidelines to ensure compliance.
- Work with an attorney experienced in Connecticut workers’ compensation to streamline the process.