Idaho Law Blog
By Fred Lewis and George Casper
In Idaho Worker’s Compensation cases where the injury is partially caused by a third party (resulting in two separate lawsuits), there is a big misconception that one can gain a cash settlement that is larger than the actual value of the case. Some argue that workers with legitimate third party claims can hit the lawsuit lottery if they are able to sue multiple entities at the same time. This is simply not the case. The type of recovery described above is called a “double recovery” in the legal world and expressly prohibited. In order to protect against a double recovery for an injury, the ruling court (in the case of a Worker’s Compensation case, this would be the Idaho Industrial Commission) will make sure that there is no double recovery. This basically means that the employer’s insurance company would lose their chance at reimbursement of their subrogated claim (what they have paid in medical bills and disability benefits) if the employers is found negligent. The only exception to this would be if the worker’s compensation benefits and the benefits won in the third party case add up to be more than the actual value of the case.
In order to better illustrate exactly what would constitute a double recovery, here is an example:
Total damages = $1,000,000
Fault in 3rd Party Case
Third Party – 80%
Employer – 10%
Injured Employee – 10%
Employer’s Insurance Company’s subrogated claim or right to reimbursement = $300,000
In this example, the injured employee received $800,000 from the third party case. When this is added together with the $300,000 the employee has received via his or her worker’s compensation claim, it comes to $1,100,000. This is $100,000 more than the actual damages in the case. The injured employee would be required to pay $66,667.00 to the employer’s insurance company (the other $33,333.00 would be taken as attorney fees) in order to eliminate the double recovery . This $66,667.00 would come out of the $800,000 the injured worker received from the third party lawsuit. This would bring the total recovery down to $1,000,000, remove any double recovery that took place, and eliminate the possibility of an injured worker of winning bigger than they should via jackpot justice.
There are many traps in this complicated area of the law. You need an experienced Idaho workers’ compensation lawyer to make sure you recover the maximum allowed under Idaho law.
Call Racine Olson Immediately
When seriously injured in a workplace accident, it can be devastating to you, your friends and family, and your finances. If seriously injured, you will certainly miss work and you will accumulate expensive medical bills. You need a passionate and experienced Idaho Worker’s Compensation attorney to help you navigate through the process. If you have been injured at your workplace, you are certainly entitled to benefits under Idaho Worker’s Compensation Law. Call our office today at (208) 232-6101. We answer all your questions for free.
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