You suffered a serious work-related injury. You received workers’ compensation benefits. But, a third-party (someone outside your work) caused the accident. Someone else negligently hurt you. You want to pursue a personal injury claim against that third-party. Can you file a workers’ compensation claim AND a personal injury claim? Yes, you can. But, you need an attorney who understands how these two claims work together. If you hire an attorney who only understands or works one claim but not the other, then you could be short-changing yourself.
You also need to understand the workers’ compensation insurance company has certain rights (a lien) to be repaid from your settlement. A good attorney can help maximize your settlement recovery from these two claims.
The workers’ compensation carrier has a lien against your personal injury case. Under Alabama law, your employer (and its insurance carrier) have certain rights to get their money back if you win your personal injury case. At our firm, we routinely represent clients in both workers’ compensation and other personal injury cases. We understand how these areas of the law interact.
What happens when your employer or its insurance carrier files a lien against the third-party negligence case? The issues can be complicated. How you (or your lawyer) handle these issues can tremendously impact your bottom line. I could discuss these issues in significant detail. While the issues are too complicated for this short post, I thought I would discuss five quick tips.
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What You SHOULD Do When Dealing With A Work Comp Lien. Four Quick Tips For You!
Here are four quick tips to consider when handling this type of case:
1) Verify The Claimed Lien
In every case, I make the employer’s insurance carrier produce a detailed print-out of all payments. Do NOT simply accept the total amount claimed by the employer or insurance carrier as its lien. When I review these print-outs, I often find administrative or investigative expenses included in the total. The claimed lien total should only include actual payments for your medical care or your disability benefits. It should not include extra payments for administrative, investigative, legal, case management or other matters. Many attorneys simply accept the total provided by the insurance carrier. NEVER do that. And, we are often able to save significant money for our clients by reducing the lien amount you owe.
2) Bring The Workers’ Compensation Insurance Adjuster To Trial
Your employer and its insurance carrier have a lien for the medical expenses and disability payments related to your injury. The lien amount can be significant. If you ultimately go to trial in your personal injury case, the damages you seek will include your medical expenses and wage losses. That is, you will probably discuss these numbers at the personal injury trial. Who is in the best position to be a credible witness as to these amounts? The adjuster who made the decision to pay the amounts can make an excellent witness. We all know the workers’ compensation adjuster only paid medical costs or disability payments when absolutely necessary. If you have fought for workers’ compensation benefits like I have, you will understand. We all know the adjuster did not pay anything extra and reviewed every charge. So, that adjuster makes a credible witness to numbers that are real, necessary and conservative. I have used these adjusters as witnesses in several personal injury jury trials. Their testimony has made a significant and positive difference in these cases. I have interviewed jurors after several trials and the feedback is very positive.
3) Keep The Workers’ Compensation Insurance Adjuster Updated
Many personal injury attorneys ignore the workers’ compensation issues and adjuster. Their clients often suffer as a result. These attorneys will call the workers’ compensation adjuster only when the third-party case is about to settle. That can be a mistake. In our third-party cases, we periodically call the adjuster. If you have a difficult third-party case and a full recovery is doubtful, the workers’ compensation adjuster needs to understand the problems. Why? Because you might need to accept less to settle a doubtful third-party claim and you will want the workers’ compensation adjuster to reduce its lien. If you are going to ask that adjuster to take less, you need to let them know the difficulties ahead of time. This effort can greatly benefit your injured client.
4) Get Any Contracts Between Your Employer And The Negligent Third-Party
In some third-party cases, this is not an issue. For example, you are a delivery driver. You were hurt on the job by another driver in a car accident. You have a workers’ compensation claim. You also have a third-party negligence case against the other driver who caused the car accident. I’m not talking about that type of case. I’m talking about cases on construction or industrial sites where your employer has some contractual relationship with the property owner, manager, or another contractor. In those cases, I have occasionally found contracts where one party agrees to waive any claims. Sometimes, these contracts specifically waive any liens. I have successfully argued that liens were waived on prior occasions before a trial court in Alabama. One word of warning – the Alabama Supreme Court has not fully addressed this issue on appeal.
If you're looking for a great lawyer for a workers compensation case please consider Blackwell Law. Patricia, Danielle and Jeff are very easy to work with and keep you informed always. Thank you Blackwell Law for taking care of my case.
Response from the owner:Dwayne, Thank you so much. It was our pleasure to help with your case! Call us if you ever need anything.
The Blackwell Law Firm is Top notch. Patricia and Danielle worked so hard to help me and keep me informed. Jeff , was wonderful as well. I would recommend them 1000000%. If you ever have a question, you can reach out and they will explain whatever it is to you. They make you feel like you are family. They go above and beyond. I am truly grateful for the Blackwell Law Firm.
Response from the owner:I'm so happy we could help with your case. We want you to know that you have a partner who will walk with you, and work hard for you, throughout the process. We also agree that Patricia and Danielle are great at what they do! You know that if you ever need anything, we are here to help! Thank you!
I can not express enough to you of how amazing Blackwell lawfirm is! From Patricia and Danielle to Me. Blackwell himself! They treat their clients in just going to say as close as they can like family. My case was handled very well and I’m satisfied with my outcome! Patricia is the heart of the program and you can truly tell that she loves what she does. I didn’t even look at reviews before I called Mr. Blackwell office little over 2.5 years ago but when I met him and he took my workers comp case at the beginning pro bono even if it didn’t turn into a case just so he could help me through the medical that I found out I would need I knew I had found the once in a lifetime attorney! Now he is humble when you tell him that every attorney in town says he is the best dang workers comp attorney in Alabama but I am here to tell you they all say it bc they know it. If you are reading this make an appointment even if you are questioning if you have a case or not he will let you know and you will love the team! Thank you Blackwell law firm once again!
Response from the owner:We are so thankful for the opportunity to help with your case. We also think Patricia and Danielle are amazing!!! They are so helpful with clients navigating the personal injury or work comp processes. From start to finish, we want to provide the advice and help that is needed while working non-stop for your maximum recovery possible. If you ever need anything, please let any of us know. We are always here for you!
Jeff is incredibly thorough, hardworking and honest. Patricia was so helpful throughout the process answering questions promptly and making me feel at ease. I highly recommend the Blackwell Law Firm!
Response from the owner:Thank you for the great recommendation, Rob! We truly value your support and are thrilled that you had a smooth process with us.
I highly recommend Blackwell Law Firm. Jeff and his staff are friendly and very professional. My mom and I are very grateful for everything.
Thank you!! 🙂
Response from the owner:We are so happy we could help your mother after her injury. We are grateful for the opportunity to work with you and your mother's doctors to build the best case for her. We are here if you ever need anything! Thank you so much!
The case took years as most cases do, but Patricia was always trying to give updates. And if I had any questions she would always find out the answers, and go into great detail to explain each process and steps that were being taken. Jeff and his team will work their hearts out for you. I highly recommend them for your work comp suits.
Response from the owner:Thank you for the review! When you suffer a serious injury or disability at work, you deserve full work comp benefits. We know how unfair the system can be. That's why we work as hard as possible to recover the maximum benefits available. We want to win everything we can for our clients. We also want you to have the answers you need during each step of the process. I'm so happy we could help!
Excellent service, Danielle and Patricia are awesome. They get back to you fast and answer all your questions. Friendly team. Jeff cares about his clients. Would highly recommend..
Response from the owner:Kathy, thank you so much! We are so happy we could help with your case. We understand injuries and medical care are difficult issues. Our entire team is centered on providing answers, advice and advocacy to help and to obtain the best possible result for you. We focus exclusively on injury cases so we can provide the best possible help. Yes, Patricia and Danielle are great!
If you're wondering whether you need a personal injury lawyer—or you're just unsure who you want in your corner—give Jeff and his team, Danielle and Patricia, a call. They don’t treat you like just another client; they treat you like family.
They respond promptly to questions, often even after hours. The guidance and peace of mind they provide are incredible and virtually unheard of these days.
Response from the owner:Thank you for such a thoughtful review! At Blackwell Law Firm in Huntsville, our goal is to provide every client with personal attention, real answers, and the peace of mind that comes from knowing we are working hard in your corner! Danielle, Patricia, and I, are all grateful for the trust your wife Dawn and you placed in us. We focus on one thing -- Working hard for families across northern Alabama in personal injury, car accident, and work injury cases. We are so glad we could help!
What You Should NOT Do When Dealing With A Third-Party Case And Work Comp Lien.
In the previous section, we covered four positive steps you can take to increase your net recovery when dealing with a lien. Now, let’s talk about something equally important — what not to do.
Avoid Hiring a Lawyer Who Only Handles One of Your Claims
If you have both a workers’ compensation claim and a third-party case, never hire an attorney who only handles one of them. This is one of the most common and costly mistakes injured workers make.
Here’s why: imagine you’re a delivery driver who gets injured when another driver runs a red light. In this situation, you likely have two cases — a workers’ compensation claim for your job-related injuries and a third-party personal injury claim against the negligent driver.
However, some lawyers only want to handle the third-party case because it might offer a higher attorney fee. They ignore or dismiss the workers’ compensation side entirely. This creates major problems, including:
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Disruption of your medical care due to mishandled workers’ comp coordination.
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Conflicts between the two cases that can hurt your recovery strategy.
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Reduced total compensation, since neither claim is optimized together.
When a lawyer only understands part of your situation, they can easily miss opportunities to maximize your overall financial recovery. The best approach is to hire an attorney — or a firm — experienced in managing both workers’ compensation and third-party injury claims. This ensures that every decision in one case supports the other and protects your full rights as an injured worker.
This is one of the most important decisions you’ll make in these cases — and it can make a significant difference in your outcome.
Consult An Attorney Who Understands Workers’ Compensation Lien Issues
Liens can create complicated issues. Too many attorneys either don’t understand the issues or won’t take the time to handle them. A skilled attorney who specializes in personal injury and workers’ compensation cases can greatly benefit your ultimate recovery. If you have additional questions, the attorneys at the Blackwell Law Firm are happy to provide answers.
Call Us Now (256) 261-1315
(256) 261-1315
