The Information Resource For Accident Victims In Pennsylvania

Pa Workers Compensation:Waiver And Reduction

Reduction of a workers’ compensation lien is usually reduced by a proportion of the attorney fee and costs, with the savings being passed on to the client. But additional negotiations lowering the lien further are possible depending on comparative fault, application of the “made whole doctrine” and other equitable damages, such as the inability to recover full damages in the negligence case due to negligence on the part of the plaintiff or limited coverage on the defendant. So too, the risk of summary judgment in the negligence case can be the basis of lien reduction. Although a workers’ compensation lien is statutory, it can be waived. That means the workers’ compensation can forego its rights to repayment, but there has to be an incentive for the carrier to do so. If, for example, the workers’ compensation carrier will face ongoing medical or disability payments, and yet the personal injury case verdict value is low, due to liability problems or limited coverage limits on the tortfeasor, the workers’ comp carrier may indeed be persuaded to waive its lien if the workers’ compensation lien is negotiated at lower than the top settlement range. The claims adjuster will celebrate closing the claim for a lower lump sum payment.

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