FastCounsel

Disclaimer: This article is for educational purposes and does not constitute legal advice.

Detailed Answer

When you receive workerscompensation benefits in Wyoming and later pursue a personal injury claim against a third party, the workerscompensation insurer holds a subrogation lien. This lien ensures the insurer can recoup benefits paid to you from any recovery. Follow these key steps under Wyoming law to resolve the lien efficiently:

1. Identify and Quantify the Insurers Subrogation Lien

Under Wyo. Stat. A7A7 27-14-201(a), an insurer is subrogated to the rights of the employee against third parties and may seek reimbursement of benefits already paid. Begin by requesting a lien statement from the workerscompensation insurer. This statement should list:

• Total benefits paid (medical, indemnity, etc.)
• Accrued interest
• Administrative fees

This lien amount forms the basis for negotiations.

2. Serve a Reservation of Rights and Lien Notice

Before finalizing any settlement, serve written notice on the workerscompensation insurer of your intent to resolve the thirdparty claim. Include:

• A summary of your claim and proposed settlement
• The insurers lien amount
• A request for lien forgiveness or reduction

If the insurer objects, Wyoming law allows you to petition the Wyoming Department of Workforce Services, WorkersCompensation Division, for a hearing.

3. Negotiate or Petition the Wyoming Labor Commission

Many liens resolve through negotiation. The insurer may agree to take a reduced percentage of your settlement. If negotiations stall, file a petition with the Wyoming Labor Commission under Wyo. Stat. A7A7 27-14-201 et seq. The Commission can:

• Hold an evidentiary hearing
• Allocate attorneys fees and costs
• Determine a fair lien reduction

4. Obtain Written Approval of the Settlement and Lien Discharge

Once you reach an agreement, obtain a written release from the workerscompensation insurer. This release should:

• List final lien amount
• Define allocation of attorneys fees and litigation costs
• Confirm no further subrogation claims

Present this release to the Commission or court if required to close the workerscompensation claim.

5. Document and Disburse Settlement Funds

After approval, disburse the settlement by:

1. Paying the workerscompensation insurer the agreed lien amount
2. Allocating attorneys fees (typically 2540%, subject to Commission approval)
3. Disbursing net proceeds to you

Keep records of all filings, agreements, and disbursements for audit and compliance.

Helpful Hints

• Start lien resolution early. Delay increases risk and costs.
• Allocate attorney fees and costs transparently to avoid Commission challenges.
• Maintain clear communication with the insurer and the Commission.
• Consider mediation if direct negotiations stall.
• Retain copies of all notices, agreements, and Commission orders.
• Consult a personal injury attorney experienced in Wyoming workerscompensation subrogation issues.