Detailed Answer
When you file a personal injury claim in Maryland after a work-related injury, your employer or its workers’ compensation insurer may assert a lien under Md. Code, Labor & Employment § 9-502. This lien allows them to recover benefits paid from any third-party settlement or judgment. To resolve the lien, follow these steps:
- Identify the Lien Amount. Request a statement of lien from the workers’ compensation insurer. The statement should itemize medical expenses, wage losses, and other benefits under Md. Code, Labor & Employment § 9-502(a).
- Review the Statutory Basis. Under Section 9-502, the insurer’s recovery is limited to the lesser of the benefits paid or the net recovery after deduction of legal fees and costs. See Md. Code, Labor & Employment § 9-502.
- Negotiate a Settlement Pay-Out. With your attorney, negotiate with the insurer. Propose a percentage or fixed amount of your settlement to resolve the lien. Ensure your proposal reflects the statute’s statutory cap.
- Court Approval (if needed). If parties cannot agree, file a petition in the circuit court under Md. Code, Labor & Employment § 9-504. The court will determine a fair lien amount. See Md. Code, Labor & Employment § 9-504.
- Draft a Lien Release. Once you reach an agreement or court order, prepare a lien release. It should identify the claimant, lien holder, settlement details, and payment. Have both parties sign.
- Distribute Settlement Funds. Pay the lien holder the agreed amount from your settlement proceeds. Then finalize the personal injury release and distribute remaining funds to yourself or your insurer, as applicable.
Helpful Hints
- Act early: Request the lien statement soon after settlement talks begin.
- Document everything: Keep copies of correspondence, court filings, and settlement agreements.
- Consult counsel: A personal injury lawyer familiar with Md. Code, Labor & Employment § 9-502 can protect your interests.
- Calculate legal fees: Maryland law limits lien recovery to net recovery after fees—don’t overlook your attorney’s costs.
- Prepare for court: If negotiations stall, be ready to file a petition under § 9-504.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult an attorney licensed in Maryland for guidance on your specific situation.