Issue link: http://www.e-digitaleditions.com/i/83215
XII. Subrogation Injuries caused by a third party's negligence create a right of subrogation. The most common examples occur when an employee is involved in a motor vehicle accident with a non-employee, where injury is caused by a defective product, or where injury is caused by a stranger to the work. The right of recovery is not limited to the initial work injury, but can also be had against injuries arising from medical malpractice during the course of treatment of the work injury or subsequent injuries that aggravate or exacerbate the work injury. In cases arising before July 1, 2004, you must intervene in the civil suit to protect your interests. For cases arising on or after that date, you merely need to put the claimant on notice of your lien. A claimant's settlement of a civil suit in which you had an interest, without your knowledge or permission, can result in termination of his workers' compensation award. If the claimant chooses not to pursue suit against a third party, you may do so on his behalf, but this is not the most preferable method, as insurance carriers are less sympathetic plaintiffs. If a recovery is made, you will receive back your lien, less your pro rata share of attorney fees and costs. Settlement of a third party suit is a good time to consider settlement of the workers' compensation claim. Otherwise, if the recovery exceeds your lien, you will need to deal with a post-settlement offset through entry of an Order at the Commission. Thereafter, you will be responsible for reimbursing the claimant his pro rata share of attorney's fees and costs, as he continues to incur expenses relating to his workers' compensation claim. Please consult counsel if this situation arises for guidance in calculating this and arranging for entry of an Order.