Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
Step 1: Identify the Workers Compensation Lien
Under Missouri law, an employer or its insurer may assert a statutory lien for benefits paid after a work-related injury. See Mo. Rev. Stat. 7 287.200. Verify the lien amount and type of benefits claimed.
Step 2: Notify Relevant Parties
Inform the personal injury defendant and its insurer about the workers compensation lien. Provide copies of the lien notice to all parties. File a Notice of Settlement with the Missouri Division of Workers Compensation if required by agency rules.
Step 3: Calculate the Lien Amount
Compute total benefits paid, including temporary total disability (TTD), permanent partial disability (PPD), and medical expenses. Add statutory interest at the rate defined by Mo. Rev. Stat. 7 287.240. Confirm calculations with the lien holder.
Step 4: Negotiate Lien Resolution
Discuss settlement allocation between the personal injury recovery and the workers comp lien. Allocate a portion of the gross recovery to cover the lien. Negotiate any reduction of the lien amount based on comparative fault or equitable factors.
Step 5: Obtain Approval for a Compromise (if Applicable)
If settling the lien for less than the full amount, secure approval from the Division of Workers Compensation under Mo. Rev. Stat. 7 287.225. File the joint petition and proposed order. A commissioner must approve the compromise before it becomes effective.
Step 6: Secure a Lien Release
After settling or satisfying the lien, obtain a written release or lien waiver from the employer or insurer. Ensure the release references the personal injury claim and confirms the lien resolution.
Step 7: File Satisfaction of Lien
File the satisfaction of lien with the Division of Workers Compensation to remove the lien from the record. Provide notice to all parties and confirm the docket reflects the lien closure.
Helpful Hints
- Gather all workers compensation records early.
- Consult an attorney experienced in Missouri workers compensation and personal injury law.
- Document every communication with the lien holder in writing.
- Monitor statutory deadlines for filing notices and petitions.
- Allocate settlement proceeds clearly in writing.
- File required forms with the Division of Workers Compensation promptly.