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.
Patricia was so incredibly patient with me throughout the process!! She was always so eager to help and quick to respond! She is an amazing asset to this firm!! Thank you Jeff and Patricia for everything y’all did for me!!
Response from the owner:Rob, Thank you so much. We are so happy we could help with your case. Yes, Patricia is amazing at helping clients through the process! If you ever need anything, we are here. Again, thank you!
Jeff and his team are the best. They worked relentless. And were there every step of the way. I was always kept informed, of what was happening. Believe me it was a long process, but I am so happy I chose Jeff Blackwell to fight for me. He is in it to win, and is honest and fair. If your looking for an excellent team to fight for you, this is the team you need. I thank Jeff and his team for everything.
Response from the owner:Thank you for your kind review, Billie! We’re glad you trusted our law firm for a case. Anytime you need legal advise, be sure to give us a call.
I highly recommend Jeff if you are looking for a lawyer. Jeff, Patricia, and Danielle were there for me through every step of the process. They explained everything clearly and answered all of my questions with care and respect.
Response from the owner:Thank you so much. I'm so happy we were able to help. If you ever need anything, we are here!!!
Blackwell law firm side he would get me something back and he did just that. And thanks to Patricia for all your hard work. Thank you
Response from the owner:Thank you so much for your kind words. I'm so happy we were able to go after the insurance company and help you. If you ever need anything, just let us know. Thank you!
They were very helpful!
Response from the owner:We are so happy we could help. If you ever need anything, let us know.
Blackwell Law firm is one of the most compassionate law firms. Danielle is knowledgeable and provided great insight. Thank you!
Response from the owner:Thank you so much. I'm so happy Danielle was able to help with your legal questions. Give us a call any time.
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!
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.
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(256) 261-1315
