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Connecticut Legislature Passes Bill Reforming Workers’ Compensation Lien Payback in Third Party Negligence Cases

6/13/2011

The Connecticut legislature recently passed House Bill 6474 which should help injured workers settle personal injury lawsuits that involve overlapping workers’ compensation claims.  Usually, when an injured worker has a workers’ compensation claim and a negligence claim against a third party that both stem from the same accident, the workers’ compensation insurer has the right to get reimbursed for one hundred percent of the money it spent to compensate the injured worker from the third party if that party is found to be negligent.  In the past, the workers’ compensation insurer’s right to be reimbursed could hinder settlement discussions between the worker and the negligent third party because the insurer would often demand a complete payback of the money it paid out in connection with the workers’ compensation claim.  This scenario would decrease the chances of settling because many workers would be left with little or no settlement proceeds if the workers’ compensation insurer demanded one hundred percent payback from the settlement proceeds.  The new law makes it clear that, in many situations, the insurance company will no longer be entitled to be reimbursed for one hundred percent of its costs.  Instead, the insurer must reduce the amount to be reimbursed by one-third, though the parties may agree to reduce this amount further.  It is anticipated that this legislation will help facilitate settlements between injured workers and negligent third parties by ensuring that the injured worker will be more likely to recover money from the settlement.  The legislation is considered to be a victory for plaintiffs in Connecticut.  To learn more about it, please visit www.cga.ct.gov

 

Mahon, Quinn & Mahon, P.C. represents individuals who have been injured on the job.  Call our Meriden, Connecticut office today at 203-238-1010 for a free and confidential consultation!


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