Missouri Appeals Court Rules on Workers’ Comp Subrogation in First-Impression Case: Wolk v. Grinnell Mut. Reinsurance Co., 2024 WL 4536811 (Mo. App. 2024)

Jason Wolk and Jeffrey Meyer were injured while working for J. Wolk Construction, LLC. Their workers’ compensation insurer, Grinnell Mutual, covered their claims, paying Wolk $900,969.83 and Meyer $815,829.47. The employees pursued legal action against multiple third parties, and before the case proceeded to trial, one of the defendants agreed to a $1,000,000 settlement. Each…

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MARYLAND SUPREME COURT ASKED TO DECIDE NOVEL WORKERS’ COMPENSATION SUBROGATION ISSUE Trumbull Ins. Co. v. International Marketing Group, Inc., 2024 WL 4753369 (D. Md. 2024)

A federal court in Maryland has asked the Maryland Supreme Court to sound off on an issue regarding the apportionment of attorneys’ fees and costs between a workers’ compensation insurance company and an injured employee, following a large third-party settlement. The facts are somewhat unusual (although they shouldn’t be) because in this case, the workers’…

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LANDMARK WORKERS’ COMPENSATION SUBROGATION DECISION IN NEVADA! AmTrust N. Am., Inc. v. Vasquez, 2024 WL 4233423 (Nev. 2024)

On September 19, 2024, in one of the most pro-subrogation decisions in a generation, the Nevada Supreme Court has overnight turned Nevada into one of the most favorable states for workers’ compensation subrogation. With the stroke of a pen, the court has done the following: Abandoned the “Breen Formula”—which it declared was “unworkable” and “no…

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Recovery of Increased Workers’ Compensation Premiums by Employer

It is said that good judgment comes from experience, but experience comes from bad judgment. This pithy aphorism is generally true in life but is particularly true when a company sees significantly increased workers’ compensation insurance premiums following a serious workers’ compensation claim. The same is true even if the claim was not the employer’s…

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PENNSYLVANIA COMP CARRIER RECOVERS FULL LIEN AFTER ADVISING PLAINTIFF’S COUNSEL THAT LIEN WAS MUCH SMALLER: Janelle Newsome, Petitioner v. City of Philadelphia (Workers’ Comp. Appeal Bd.), Respondent, 2024 WL 3406202 (Pa. Commw. 2024).

In a rare example of how strong a workers’ compensation statutory lien can be, a Pennsylvania appellate court affirmed a ruling by a Workers’ Compensation Judge (affirmed by the Workers’ Compensation Appeal Board (WCAB)) in which a workers’ compensation carrier was allowed to recover its full $45,530.48 lien out of the employee’s $675,000 third-party settlement,…

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WHICH WORKERS’ COMPENSATION “BENEFITS” CAN BE SUBROGATED? Recovery of Case Management Costs, Medical Bill Audit fees, Rehabilitation Benefits, Utilization Review Costs, IME’s, Nurse Case Worker Fees, Attorneys’ Fees, and Other “Allocated” Loss Adjustment Expenses

It’s the question every claims professional and trial attorney claims to know but few fully understand. In addition to paying for medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, independent…

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Texas

TEXAS COURT MAKES IT EASIER FOR WORKERS’ COMPENSATION CARRIER TO SETTLE DIRECTLY WITH THE TORTFEASOR AND AVOID PAYING ATTORNEYS’ FEES TO THE EMPLOYEE Sentry Casualty Company v. Bravin, 2024 WL 3083299 (Tex. App. 2024).

A new Texas Court of Appeals decision has clarified the process by which a workers’ compensation carrier can settle directly with a third-party tortfeasor and thereby avoid having to reduce its lien by a pro rata share of the employee’s attorneys’ fees. Meanwhile, the process of “selling your lien” has never been less complicated and…

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HOW TO SUE YOURSELF AND WIN: Nuances of Subrogating Workers’ Compensation Death Claims

The American horror film “Split”, directed by M. Night Shyamalan, is a psychological thriller which centers on a bizarre antagonist with 23 separate personalities. Without spoiling the plot, suffice it to say that it focuses on the fact that there is something to the adage “mind over matter.” They say that life imitates art. If…

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