If you have a third party lawsuit stemming from a work related injury, the Workers’ Compensation Law requires that certain steps be taken before settling the lawsuit.
New York State Workers’ Compensation Law Section 29 (5) required that the plaintiff (employee) secure written consent from the employer and/or Workers’ Compensation carrier before they settle the third party action.
If consent by the carrier is refused, the plaintiff may secure a compromise order from the Court having jurisdiction over the third party action.
This is important because failure to properly secure consent from the Workers’ Compensation carrier will result in the claimant’s forfeiture of his or her rights to receive further Workers’ Compensation benefits. In short, failing to settle a lawsuit without getting the Workers’ Compensation carrier’s consent effectively ends all future Workers’ Compensation benefits.
In circumstances where the lawsuit has been settled without consent a nunc pro tunc order may be granted if a claimant can meet certain offers of proof.
If you have questions as to whether or not, you have a viable third party action in addition to a Workers’ Compensation claim, feel free to contact us for a free consultation.