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Subrogation Pitfalls in Workers' Comp

This article looks at three ways that claimants and their attorneys have attempted to separate workers' compensation insurers and employers from their rightful subrogation recovery.

By Bryan M. Groh | Updated on December 01, 2008

Editor’s Note: As part of an expanded editorial approach, Claims is offering first-run, feature-length articles on our web site before they appear in our monthly print issue. These articles will be clearly marked and are intended to expand the editorial breadth of the magazine while at the same time delivering even more useful and educational insights to our readers. We hope you find this extended coverage helpful.

Over my 25 years as a member of the defense bar, I have witnessed the myriad ways plaintiffs’ attorneys manipulate settlements so that a workers’ compensation carrier gets the short end of the stick when trying to protect its subrogation interests. This article will look at three ways that claimants and their attorneys have attempted to separate workers’ compensation insurers and employers from their rightful subrogation recovery. The three legal strategies highlighted include wrongful death settlements involving non-beneficiaries; allocating settlements for pain and suffering; and allocating part of the settlement for a spouse’s loss of consortium claim. Suffice it to say that carriers and employers need to be extremely diligent to prevent having their pockets picked.

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