IF I SETTLE A LAWSUIT (THIRD PARTY ACTION) STEMMING FROM MY WORK ACCIDENT, DOES IT AFFECT MY WORKERS COMPENSATION CASE?

Westchester Workers' Comp Attorney

A: YES. If you settle your lawsuit it will affect your workers compensation case in many ways.

When you have a work related accident or injury, and another party/person was partially or wholly responsible for your injury, then you can possibly bring a lawsuit against that third-party (a third party claim). In essence, you will have two claims from one injury, a workers compensaiton case and a lawsuit against someone other than your employer or co-worker (you can't sue either in New York except under very limited circumstances, it is your exclusive remedy)

New York Workers Compensation Law recognizes that if you do have both claims, then the insurance company should be entitled to recover (recoup a lien) some of the money it has paid out to you. By paying back some money, and getting the permission of the insurance company to settle the third-party claim (consent) you will be entitled to continue to receive benefits under certain circumstances. If you FAIL to get consent - permission - then you will forfeit your right to continue getting medical care and weekly benefits.

However, it is the responsibility of your third-party attorney to obtain the consent of the workers compensation case. DO NOT BE FOOLED. Many third-party attorneys do what is right, but others ignore this requirement because its easier and quicker to settle the case and get you your money. However, if they do that it is also legal malpractice. DO NOT BE FOOLED - it is the third-party attorneys responsibiilty. Not yours, not your workers' compensation attorney and not anyone elses. DO NOT LOSE YOUR BENEFITS...DO NOT SIGN A SETTLEMENT AGREEMENT UNTIL YOUR THIRD-PARTY ATTORNEY GETS CONSENT

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