Detailed Answer
When you file a personal injury claim against a third party while receiving workers’ compensation benefits, Oklahoma law grants the insurer a lien on any recovery. Under 85 O.S. §47, the insurer may seek reimbursement of benefits paid. To resolve this lien, follow these steps:
- Determine the Lien Amount: Contact the workers’ compensation carrier and request a written lien statement. This statement must itemize all benefits paid, prospective benefits, and related costs. Oklahoma law requires the insurer to provide this within a reasonable time.
- Review Subrogation Rights: Under 85 O.S. §43, the insurer’s subrogation right may reduce the net recovery. The statute also allows deduction of attorney fees and court costs from the lien amount.
- Calculate Deductions: Oklahoma courts often allocate attorney fees pro rata between the claimant and the insurer’s lien. Verify fee percentages and deductible costs before settlement discussions.
- Negotiate a Lien Reduction: Insurers commonly agree to reduce their lien in exchange for prompt payment and avoiding litigation. Propose a lump‐sum payment or percentage to settle the lien and finalize the personal injury claim.
- Document the Agreement: Draft a lien waiver or settlement agreement that specifically releases the insurer’s lien. Ensure it references the agreed amount, payment terms, and releases under 85 O.S. §47.
- Obtain Court Approval or File with the Commission: If a dispute arises, you may petition the Oklahoma Workers’ Compensation Commission or the court to adjudicate the lien amount. Include the lien statement, settlement agreement, and any supporting evidence.
- Allocate Settlement Proceeds: Once resolved, distribute the settlement funds according to the agreement—pay the insurer, cover attorney fees, and disburse net proceeds to the claimant.
Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Helpful Hints
- Request the lien statement early to avoid delays.
- Keep detailed records of all communications and payments.
- Consult an attorney experienced in workers’ compensation and personal injury law.
- Check statute deadlines for filing liens or petitions under 85 O.S. §§ 43 & 47.
- Negotiate promptly to reduce litigation costs.