Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney in New Hampshire for guidance on your specific situation.
Detailed Answer
When you pursue a personal injury claim against a third party, New Hampshire law authorizes your employer or its workers’ compensation carrier to assert a lien for benefits paid. RSA 281-A:32 establishes this lien. Here’s how it impacts your final recovery:
1. Statutory Lien Rights
Under RSA 281-A:32, if your employer’s insurer has paid medical expenses or wage-replacement benefits, it may seek reimbursement from any third-party settlement or judgment. This lien attaches to your gross recovery before attorney fees and costs are deducted.
2. Calculating the Lien Amount
The carrier generally may recoup the full amount of benefits it paid. New Hampshire follows the “common fund” principle, which allocates attorney fees and litigation costs proportionally between you and the carrier. This reduces the carrier’s share by its fair share of fees and expenses.
3. Negotiation and Reduction
You and your attorney can negotiate with the workers’ compensation carrier to reduce the stated lien. Carriers often agree to accept a reduced amount—especially when your legal fees and costs consume a significant portion of the recovery.
4. Impact on Net Recovery
To determine your net recovery, start with your total settlement or judgment. Subtract your attorney fees and litigation costs, then satisfy the workers’ compensation lien. The balance is the amount you keep.
Helpful Hints
- Review RSA 281-A:32 to understand the carrier’s reimbursement rights.
- Document all benefits paid by your employer’s workers’ compensation carrier.
- Discuss lien negotiation strategies with your attorney before settling.
- Clarify how attorney fees and costs will be shared under the common fund rule.
- Obtain a written lien waiver or stipulation when resolving your third-party claim to prevent future disputes.