Disclaimer: This article is for informational purposes only and does not constitute legal advice.
Detailed Answer
When you pursue a personal injury claim in Washington after a work-related accident, your employer or its insurer holds a statutory right to reimbursement for benefits paid. This right, called subrogation, is governed by RCW 51.24.020 and 51.24.030. You must resolve any workers’ compensation lien before you finalize a third-party settlement or judgment. Follow these steps to comply with Washington law:
1. Confirm Existence and Amount of the Lien
Request a copy of the lien statement from the Department of Labor & Industries (L&I) or the insurer. Under RCW 51.24.020, the carrier must provide an itemized record of all benefits paid, including medical and wage‐loss payments. Review the ledger carefully to ensure accuracy.
2. Provide Written Notice to the Carrier
As soon as you file your personal injury complaint, send a written notice to the workers’ compensation insurer. Include the lawsuit caption, case number, and your demand for a subrogation statement. Timely notice prevents the carrier from forfeiting its lien rights.
3. File a Petition for Determination of Lien (If Necessary)
If you and the carrier cannot agree on the repayment amount, file a petition with the Board of Industrial Insurance Appeals. Under RCW 51.24.030, the Board will schedule a hearing to resolve disputes over lien validity and amount.
4. Negotiate a Compromise
Many carriers will accept a reduced lump-sum payment to avoid protracted litigation. Use the hearing risk and expected administrative costs as leverage. Document any agreed‐upon settlement terms in writing.
5. Secure a Lien Release Before Settlement
Obtain a written release from the carrier that confirms full satisfaction of its lien. Attach this release to your personal injury settlement documents. Without it, the carrier could assert a claim against your recovery later.
6. Allocate and Disburse Settlement Funds
Include the lien payment in your settlement disbursement schedule. Pay the carrier directly from the escrow or settlement fund. Then distribute the remaining proceeds to yourself and any other parties. Maintain proof of payment in your case file.
By following these steps, you ensure compliance with Washington’s subrogation statutes and avoid delays or challenges that could jeopardize your personal injury recovery.
Helpful Hints
- Begin addressing the lien early in your case to prevent last-minute delays.
- Keep organized records of all correspondence, lien statements and payments.
- Consider private mediation to reach a compromise more quickly and affordably.
- Track statutory deadlines for notice and petition filings to protect everyone’s rights.
- Consult a qualified attorney to guide you through complex procedures and hearings.