"Workers' compensation carriers are getting a smaller slice of the settlement "pie" when another potential claimant (spouse) asserts their damages in addition to the injured worker," says Saerim Luciano of Pearlman, Brown & Wax. (Credit: Destina/stock.adobe.com)
Loss of consortium claims can hamper the ability of workers' compensation carriers to maximize subrogation recoveries. This is in addition to preventing a carrier's ability to assert a third-party credit in any ongoing workers' compensation litigation, according to Saerim Luciano, senior counsel and chair at Pearlman, Brown & Wax.
"A workers' compensation carrier can only assert a credit in the Workers' Compensation Appeals Board (in California) against the injured worker only," she tells PropertyCasualty360.com. "Therefore, if part of the civil settlement is allocated to the injured worker's spouse, then that part of the settlement funds are untouchable."
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
