Last Friday the Texas Supreme Court held a workers’ compensation carrier is entitled to first money recovered by an injured worker from a third party tortfeasor despite efforts to settle around the carrier by the attorney for the survivors of the deceased employee and his estate.
Charles Ledbetter was electrocuted while working for his employer. Texas Mutual paid death benefits to his widow and minor son. These survivors and the deceased employee’s estate then brought suit against the third party tortfeasor. Shortly before trial, the case settled and the attorney for survivors and the estate non-suited all claims except those of the estate in an attempt to avoid paying any portion of the settlement to the carrier. The trial court allowed the nonsuit over the carrier’s objection that it would subvert the carrier’s subrogation rights.
In its decision upholding the carrier’s lien, the Supremes noted the right of first money reimbursement to the carrier is crucial to the workers compensation system because it reduces costs to the carriers (and thus employers and the public) and prevents double recovery to workers. When an injured worker settles without reimbursing the carrier everyone involved is liable to the carrier for conversion – the plaintiffs, the plaintiffs’ attorney and the defendants. Texas Mutual Insurance Co. v. Paula Ledbetter, et al. (Tex. April 4, 2008).
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We will cover this and other important Texas Supreme Court cases in our full day, fully accredited Ultimate Claims Handing Seminar. Please mark your calendars to attend the bigger and better 13th edition on October 10th, 2008 in Dallas, Texas.
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Cathy Kyle has been honored with an A-V rating (highest peer review) by Martindale-Hubbell.
She’s Good for the Long Haul and Short Haul: Ranelle Meroney finished in the top ten (gender/age category) in Austin’s Capital 10k race on March 30th. Over 17,000 runners participated in this year’s race. Earlier this year, Ranelle finished in the top two (gender/age category) in the Austin Marathon, one of the largest and most competitive marathons in the nation, which qualifies her for entry in the New York Marathon and Boston Marathon. Ranelle is a member of the elite American Board of Trial Advocates and is board certified in personal injury trial law by the Texas Board of Legal Specialization.
For the third straight year, David E. Chamberlain has been named a Texas Super Lawyer in Texas Monthly Magazine and has also been recently selected and named in national Super Lawyer Corporate Edition. He is board certified in personal injury trial law by the Texas Board of Legal Specialization.
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Chamberlain♦McHaney is A-V (highest peer review) Rated by Martindale-Hubbell and is listed in A.M. Best’s Directory of Recommended Attorneys.