Subrogation

Sometimes, a Workers’ Compensation claim is the result of a third party’s wrongful behavior, not the employer’s. The Nevada Industrial Insurance Act enables workers’ compensation insurers and Third-Party Administrators (TPAs) to recover benefits they have paid to an injured worker from the third party responsible for the injury.

The Act states that the workers’ comp insurer or TPA “has a right of action against the person so liable to pay damages and is subrogated to the rights of the injured employee or the employee’s dependents to recover therefor.” Translation? The workers’ comp insurer or TPA maintains a lien against any settlement or recovery stemming from the industrial injury.

For example, if an employee suffers injuries from a motor vehicle accident caused by a negligent driver and files a workers’ compensation claim, then the workers’ comp insurer or TPA – much like the injured worker – may take action against the negligent driver and their auto insurance company to recover damages, i.e. the cost of the claim.

Another key statute says the workers’ comp insurer or TPA has a right to assert a lien on any settlement or judgment proceeds the injured worker obtains in his or her action, as well as a right to file an independent action against the insured third party.

The same statute holds the injured worker’s attorney or representative and the third-party insurer jointly and severally liable for any amount to which the workers’ comp insurer or TPA is entitled to under the claim.

Importantly, the same statute provides that the injured employee is not entitled to a “double recovery” for the same injury.

In these cases, you need an attorney who understands both tort law and the Nevada Industrial Insurance Act to ensure that the right party bears the financial responsibilities for the claim.

For more than 20 years, HM&C has aggressively pursued tortious third parties to hold them accountable, exact payment and enforce employer liens.

You decide which level of representation you require. Sometimes simply monitoring a case and notifying the injured worker and the liable third party that the workers’ comp insurer or TPA maintains a lien outweighs the costs of heavily litigating a case to trial. Other times, it is important to file suit to protect the insurer’s or TPA’s interest before the statute of limitations expire.

Whichever level you choose, we thoroughly assess each new claim, recommend options and provide a projected litigation budget to help you chart the best course.

We also make sure Nevada employers, insurers and third-party administrators receive any additional offsets for future costs arising from a claim. Over two decades, we’ve recovered millions of dollars for our clients.

Call Hooks Meng & Clement at 702.766.4672 and speak with an attorney, today. Let us show you how our best subrogation law practices can right the wrongs and save you money.