Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance.
Detailed Answer
In West Virginia, an employer or its insurer holds a statutory subrogation lien on any third-party recovery for a work-related injury. West Virginia Code § 23-2-6 grants the right to reimbursement of compensation benefits from a personal injury settlement. To verify and satisfy that lien, follow these key steps:
1. Confirm the Lien Filing
Contact the Circuit Clerk’s Office in the county where the work injury occurred. Request a certified copy of any Workers’ Compensation Lien filed under W. Va. Code § 23-2-6. Ensure the lien lists the correct injured worker, claimant, employer, and insurer.
2. Calculate the Lien Amount
Ask the employer or its insurer for a detailed statement of all compensation benefits paid, including medical expenses and lost wages. Under W. Va. Code § 23-2-6, the employer may recover benefits paid plus allowable interest. Verify interest rates and computation periods.
3. Incorporate the Lien into the Settlement Agreement
When negotiating with the third-party tortfeasor, ensure the settlement agreement recognizes the Workers’ Compensation Lien. Allocate settlement proceeds to cover the lien so funds are reserved at closing.
4. Obtain a Written Lien Release or Stipulation
Before disbursing settlement funds, secure a written lien release from the employer or insurer. A stipulation of satisfaction should state that payment extinguishes the statutory lien in full.
5. File a Satisfaction of Lien
After payment, file the original Satisfaction of Lien document with the same Circuit Clerk’s Office where the lien was recorded. This clears the public record and protects the net settlement distribution.
Helpful Hints
- Start lien verification early to prevent closing delays.
- Compare the insurer’s lien statement against your case file for discrepancies.
- Consult the Circuit Clerk’s fee schedule for filing costs.
- Keep all communications in writing for your settlement file.
- Review the settlement disbursement with your attorney to ensure compliance.