Detailed Answer
In Wyoming, when you settle a personal injury claim after receiving workers’ compensation benefits, the insurer holds a statutory lien on your recovery. Under Wyo. Stat. Ann. § 27-14-301, the insurer may seek reimbursement for benefits paid from any third-party settlement. Follow these steps to verify and satisfy that lien:
- Request a written lien statement. Send a written request to the workers’ compensation insurer for a detailed computation of the lien. Include the claimant’s name, claim number, and anticipated settlement date. The insurer must disclose all benefits paid, interest, and penalties. (See Wyo. Stat. Ann. § 27-14-301 at https://wyoleg.gov/statutes/compress/title27.pdf)
- Review the insurer’s calculation. Compare the insurer’s figures with your own records. Confirm the lien covers only paid benefits and allowable interest. Identify any discrepancies or duplicate charges.
- Negotiate reductions if appropriate. Wyoming law allows equitable adjustment of the lien if strict enforcement would result in injustice. Present evidence of attorney fees, case risk, and settlement value to negotiate a reduced lien amount. (See Wyo. Stat. Ann. § 27-14-301)
- Obtain a lien waiver or release. After agreeing on the lien sum, request a formal waiver or release document from the insurer. This release confirms that the insurer discharges its lien upon receipt of payment.
- Disburse settlement funds. Pay the agreed lien amount directly to the workers’ compensation insurer. Keep proof of payment. Allocate the remaining net settlement to the claimant and cover attorney fees as per your fee agreement.
- File lien release documentation. File the signed lien release and proof of payment with the court handling the personal injury action or retain them in your case file. This step finalizes lien satisfaction and prevents future claims by the insurer.
Helpful Hints
- Maintain detailed records of all communications with the insurer.
- Review your settlement agreement to incorporate lien language and escrow provisions.
- Confirm statutory deadlines for requesting and disputing lien computations.
- Consider setting aside funds in escrow to cover potential lien adjustments.
- Verify local court rules for filing lien releases and related documents.
Disclaimer: This article is for general informational purposes and does not constitute legal advice. Consult a qualified attorney to address your specific situation.