When your Workers Compensation Lawyer handles a third-party claim on your behalf there can be an issue of subrogation. This means that the insurer that paid for your medical treatment and compensation in your Workers Compensation claim is entitled to some reimbursement of the costs they incurred by virtue of your Workers Compensation case; this is a right granted to the adverse party in your Workers Compensation case by statute.
It is important to have a Workers Compensation Lawyer handle your third-party claim because how an award or settlement is broken up is not very intuitive. In a situation where a settlement is negotiated with the third-party the courts have developed a formula to determine how the settlement should be broken up between you, your Workers Compensation Lawyer and the adverse party in your Workers Compensation claim. What this means is that while the adverse party in your Workers Compensation claim may have spent some amount in dealing with your Workers Compensation case they may not receive that entire amount. Instead, the formula set forth by the courts makes the adverse party pay a proportional amount of the fees and costs associated with the third-party claim. As such, just looking at a settlement amount cannot really tell you how much you will net from your third-party claim.
The information provided is for general informational purposes and does not constitute legal advice. No attorney-client relationship is created by this post. The choice of an attorney is an important one and should not be based on advertising alone.