People that sustain injuries in accidents on their work premises can often recover workers’ compensation benefits. While their employers bear the responsibility of paying such benefits, in most instances, the employee is actually compensated by the employers’ insurer. If the injured employee subsequently files a third-party claim for damages arising out of the work-related harm, the insurer may assert a lien against the employee’s recovery. Recently, a Massachusetts court explained what factors must be considered in evaluating whether a settlement allocation between an insurer and an injured employee is fair and reasonable. If you suffered losses at work, you have the right to seek workers’ compensation benefits, and it is in your best interest to speak to a Massachusetts workers’ compensation lawyer about the facts of your case.
Factual and Procedural Background of the Case
It is alleged that the plaintiff tripped in a pothole in the parking lot of his workplace and fell. Tragically, he hit his head on the pavement during the fall, causing him to sustain a traumatic brain injury that led to permanent disabilities. He filed a workers’ compensation claim and received the maximum amount of benefits available from his employers’ insurer. He then filed a third-party complaint against the owner of the property, alleging that its negligent maintenance of the lot caused his harm.
It is reported that the plaintiff and property owner ultimately agreed to settle the claim and petitioned the judge for approval of the allocation of the settlement proceeds. The plaintiff proposed that $8,000 of the proceeds go towards the insurer’s lien while the remaining $92,000 go to the plaintiff for pain and suffering. The insurer objected, asking the court to grant it one-third of the settlement. The court approved the plaintiff’s proposed allocation, and the insurer appealed. Continue reading →