Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice tailored to your situation.
Detailed Answer: Resolving Workers’ Compensation Liens on Personal Injury Claims in Utah
Under the Utah Workers’ Compensation Act, an employer or insurer that pays benefits may assert a lien on any recovery you obtain from a third-party personal injury claim. Utah Code §34A-2-419 grants this subrogation right, allowing the employer or insurer to recoup medical benefits, wage replacement, interest, and related expenses. To resolve a workers’ compensation lien in Utah, follow these key steps:
- Obtain a Lien Statement: Request a detailed statement from the workers’ compensation insurer listing all benefits paid, outstanding amounts, accrued interest, and allowable fees under Utah Code §34A-2-419. View Utah Code §34A-2-419.
- Provide Written Notice: Send timely written notice to the insurer of your intent to resolve the lien in connection with your personal injury settlement. Include the claim number, parties involved, and expected settlement date.
- Review and Verify Amounts: Compare the lien statement against your records of medical bills and wage benefits. Ensure all listed charges and interest comply with Utah Code §34A-2-419.
- Negotiate a Compromise: Insurers often agree to reduce the lien amount for prompt payment. Negotiate a reasonable payoff percentage to preserve more of your settlement.
- Draft a Settlement Agreement: In your third-party settlement documents, allocate funds specifically to resolve the workers’ compensation lien. Clearly state the agreed payoff amount and payment terms.
- Obtain a Lien Release or Waiver: Before disbursing settlement proceeds, secure a written release or waiver from the workers’ compensation insurer confirming that payment satisfies its lien in full. This protects you from future claims.
- Disburse Funds and Record Satisfaction: Pay the agreed lien amount directly to the insurer and file the lien release with your settlement file or court record as proof of satisfaction.
- Resolve Disputes If Necessary: If you cannot agree on a lien amount, either party may petition the Utah Labor Commission—or file an action in district court—to determine the proper amount under Utah Code §34A-2-419.
Helpful Hints
- Start lien resolution early to prevent settlement delays.
- Keep detailed records of all workers’ compensation benefit payments.
- Coordinate lien negotiations alongside third-party settlement talks.
- Get all payoff figures and deadlines in writing.
- Confirm release language clearly discharges the lien.