MINNESOTA WORKERS' COMPENSATION SUBROGATION IN A NUTSHELL 2 by pharmphresh33

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									              MINNESOTA WORKERS' COMPENSATION SUBROGATION
                            "IN A NUTSHELL"


A.               Features Workers'Compensation
         Essential      of                   Subrogation

     '   1.    Generallyalwaysinvolvesa situationin which somethird-partywho is not a part of the
               employer/employee relationshipcausesanemployee'sinjurythroughthatthird-party'sown
               negligence fault.
                        or

         2.    Workers' compensation          casesoften arise out of motor vehicle accidents,
                                    subrogation
                       involvingproducts machines,
               accidents                or        accidentsinvolving slipsandfalls on premises
               ownedor maintained others,construction
                                 by                 accidents, medicalmalpractice.
                                                              and
         a
         J.    Minn. Stat. $176.061is a safety mechanism       that allows the employer/workers'
               compensation carrierto obtainreimbursement anat-faultparty(third-party
                                                          from                        tortfeasor)
               for workers'compensation  benefitsit paysto/onbehalfof an employee
                                                                                who is injuredby
               the negligenceofthe third-partytortfeasor.

         4.    Therearealwaysthree(3) partiesto be concerned  with in everyworkers' compensation
               subrogation recoveryeffort:( I ) employee; employer/workers'
                                                        (2)               compensation       (3)
                                                                                      carrier;
               third-partytortfeasor.

               a.     The injuredemployee suethethird-party
                                        can                         for
                                                           tortfeasor civil damages.

                      The employee can only recover items of damage that the Minnesota Workers'
                      CompensationAct does not compensatefor (e.g., pain and suffering, emotional
                              loss of consortium,etc.).
                      distress,

               b.     The employercan suethe third-partytortfeasorfor reimbursement workers'
                                                                                       of
                      compensation benefitsit haspaid andwill haveto pay in the futureasa resultof
                      injuriescaused the employee thethird-partytortfeasor'snegligence.
                                    to             by

               c.     The third-partytortfeasorcan sue the employerfor contributiontoward's the
                      employee's   civil damage   claim baseduponthe employer'sallegednegligence in
                      causing employee's
                               the               injuries(e.g.,negligent
                                                                       training,negligentsupervision,
                      failureto properlymaintain work machine,
                                                    a              modification/removal guards
                                                                                      of      from
                      a work machine,    etc.). This is knownasLambertson "Coverage liability.
                                                                           or          B"

                      Themeasure anemployer/workers'compensation
                                       of                                carrier'sLambertsonliability
                      is the lesser (l) an amount
                                      of:            arrivedat by multiplyingthe employer'sassessed
                      percentage fault by the gross
                                    of                verdict/damages awarded the employee
                                                                               to             aftera
                      civil trial, or (2) anamountequal theemployer/insurer'snet
                                                      to                         subrogation
                                                                                           recovery
                      aftera civil trial.




SusRocarroNQurcKREFERENCE
ARTHU&CUAeMAN, KETTERTNG,
                       Surrar & Pxat-e" P.a.                                                Page I
B.      Workers' CompensationSubrogationcasesrequire early investigationthat focuseson the following:

        l.     Causation
        2.     Respectivefault levels of all of the involved parties
        3.     Civil damages
        4.     The employee's likely presentationin front of a jury
        5.     Future workers' compensationbenefit exposure

        Any appropriateresolution to a workers' compensationcasewill needto involve a considerationof
        each of these factors and their interplay with one another.

C.      Workers' CompensationSubrogation casesare either tried (civil forum) or settled

        l.     Trial

               a.      Damages are most often allocated by a statutory formula outlined in Minn. Stat.
                       $176.061. SeeAnnotated Worl<sheetforSubrogation Recoveryunder Minn. Stat.
                       5176.061, in this Quick ReferenceGuide to Workers' CompensationSubrogation
                       for a full explanation of how the formula operates.

               b.      Damagescan be allocated equitably through a Henning (Judicial) allocation. See
                       Workers' CompensationSubrogation Terminologt, in this Quick ReferenceGuide
                       to Workers' CompensationSubrogation.

               The idea in either caseis to reimbursethe employee and employer/workers' compensation
               carrier a fair amount of money, while preventing the employee from making a double
               recovery and preventing the employer/insurerfrom obtaining a disproportionateamount of
               recovery, as compared to its actual to-date and future workers' compensation benefit
               exposure.

        2.     Settlements

                       Canbe lesscostlythantrial

                       Canresultin a greater
                                           subrogation
                                                     recoverythanthroughtrial

                                 predictabilityin termsof resultsthantrial oftendoes
                       Havegreater

               d.      Havemanyforms:

                       a
                               Naig
                       a
                               Reverse-Narg
                       a                 (Partialor whole)
                               Assignments
                       a
                               Waive andWalk (Lambertson)
                       a
                               Global

                                              are
                       Eachof thesesettlements definedinthe ltorkers' Compensation
                                                                                 Subrogation
                       Terminologtsectionof this Quick Reference
                                                               Guideto Workers' Compensation
                       Subrogation.


                                                                       QurcKI{EFERENCE
                                                             SueRocRrroN
Page2                                         ARTHU&CHAPMAN,       SMETAK PKaL.q,P.a.
                                                           KETTERTNG,    &
D.     Recovery

       1.    As a general rule of thumb,an employer                throughsubrogation, more
                                                  typically obtains,                   no
             than2/3ofwhat it haspaidin workers'compensation benefits.Actualresults fluctuate
                                                                                   can
             lower or higherthanthis, depending the individualfactsof eachcase.
                                              on

       2.    An employer/workers'    compensationcarrier'ssubrogationrecoverygenerallycomes inthe
             form of an "all cash"recoveryor a'opart
                                                    cash/part futurecredit" recovery.Futurecredits
             canbe takenagainst    futureworkers'compensation  benefitspayable the employee,
                                                                               to             but
             mustbetakenincrementally    overtime,andmusttakeinto account costof collectionfor
                                                                            the
             the employee's  civil damages. Annotated
                                           See            Worksheetfor Subrogation Recovery under
             Minn. Stat. $176.061, in this Quick ReferenceGuide to Workers' Compensation
             Subrogation.




SUBROGATION QUICK REFERENCE
ART}TU& CHAPMA\ KETTERING, SMETAK& PIKALAs P.A.                                          Page3

								
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