In Massachusetts, the Workers’ Compensation Act (the Act) dictates that employers must pay employees hurt while performing job duties benefits. Typically, such benefits are actually paid by insurers, not the employers themselves. In such instances, it is not uncommon for an insurer to withhold disability payments to offset workers’ compensation payments. As discussed in a recent case, it is unlikely that such offsets will be deemed reimbursable in the event the injured party recovers damages from a third party. If you were injured while working, it is critical to speak to a Massachusetts Workers’ Compensation lawyer about your possible claims.
Case Setting
It is alleged that the plaintiff suffered a severe injury to his right hand in a workplace accident, rendering him disabled for three years. At the time, the plaintiff was insured under a group disability insurance policy issued by the defendant, a life insurance company. During his disability, the plaintiff received disability payments from the defendant and workers’ compensation benefits from his employer’s workers’ compensation insurer. The defendant withheld about twenty thousand dollars from its disability payments to the plaintiff to offset the workers’ compensation payments for lost time in accordance with the terms of its policy.
It is reported that the plaintiff and his family subsequently filed a third-party lawsuit against the machine manufacturer that allegedly caused his injury, resulting in a settlement of $300,000. The workers’ compensation insurer had a lien on the settlement proceeds and was reimbursed $65,050. The remainder of the settlement was allocated to attorneys’ fees and the plaintiff’s family. The plaintiff then demanded that the defendant refund the amount it had withheld for the workers’ compensation offset, arguing that because the workers’ compensation insurer had been reimbursed, the offset was no longer necessary. When the defendant refused, the plaintiff brought the subject lawsuit against the employer. The defendant moved for summary judgment. Continue reading →