Workers' compensation insurers paying out benefits to employees on an employer's behalf may sue the third party responsible for the injuries in order to recover the loss, according to a Connecticut Supreme Court ruling.
The ruling overturns a trial court decision that tossed a lawsuit brought by Pacific Insurance Co., which sought to recover compensation from those responsible for an employee's injuries.
"In sum, we conclude that, under the common law, an insurer that has indemnified the loss of an insured under circumstances in which a third party is legally liable for such loss, has the right to be subrogated to the insured's rights against the liable third party," wrote Justice Peter Zarella in the unanimous ruling.
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