Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
1. Identify and Confirm the Workers’ Compensation Lien
After a work-related injury, your employer or insurer may pay benefits and gain a lien on any third-party recovery. Under Nebraska law, see Neb. Rev. Stat. § 48-118, the carrier can claim reimbursement up to the total benefits paid. Early in settlement talks, check your file for any notice of lien or subrogation claim.
2. Request a Detailed Lien Statement
Ask the workers’ compensation carrier for a written lien statement. This statement should list:
- The total amount of benefits paid.
- Any medical or rehabilitation expenses covered.
- Interest or statutory penalties, if applicable.
- The legal basis for the lien.
Under Neb. Rev. Stat. § 48-125, the parties may enter an agreement to allocate settlement proceeds and resolve the lien.
3. Review and Validate the Lien Amount
Compare the lien statement against your compensation records. Ensure the carrier only seeks amounts it actually paid. Watch for duplicate charges. If you spot errors, gather supporting documents—wage statements, medical bills and payment summaries—to challenge inaccuracies.
4. Negotiate or Dispute the Lien
You can negotiate a reduced lien based on your net recovery and the strength of your third-party case. Courts sometimes allow reasonable attorney fees and costs to come off the top before lien reimbursement. Submit a written proposal to the carrier or file a motion in county court if negotiations stall.
5. Satisfy the Lien at Settlement
When you finalize the third-party settlement, allocate funds to satisfy the certified lien. Typically, the carrier’s share comes directly from the settlement escrow or through your attorney trust account. Include the lien amount in your closing statement and confirm payment method—wire, check or court disbursement.
6. Obtain a Recorded Lien Release
After payment, request a formal lien release or satisfaction document. File this release with the county clerk where the lien notice was recorded. Retain certified copies for your records. A recorded release clears the title of your settlement and prevents future claims.
Helpful Hints
- Start lien verification early to avoid last-minute delays in closing your settlement.
- Track all correspondence and document phone calls with the carrier’s lien department.
- Consult a legal professional if the carrier refuses to negotiate or disputes your documentation.
- Keep net recovery in mind—Nebraska courts may adjust lien amounts to ensure you retain reasonable compensation after fees.
- File any lien disputes in the same county where the workers’ compensation case originated.