Third Party Credit (California) (California) (California)

This category is meant for discussion of technical legal issues in workers' compensation. If you are an injured worker, do not ask questions here. Go to the Injured Workers' forum.

Third Party Credit (California) (California) (California)

Postby lacompfun on Fri Apr 05, 2019 3:29 pm

Scenario:

1. Applicant settles third party civil case for $ 100,000.

2. Workers Compensation has a lien of $ 35, 000. ( Of this amount $ 5,000 is TTD and $6, 000 is PD
And $24,000 is treatment ) They accept $ 20,000. No fault employer.

3. Plaintiff attorney fees is $ 40,000. Costs are $ 10,000.

4. Applicants gets net from the third party case $ 30,000.


Question:

Is third party credit $ 30,000 or $ 45,000?

Notes

1. Seems like $30,000 third party net credit

2. Next defendant takes credit within comp case on specific classes of indemnity like TTD $5 , 000 . PD $6, 000 already paid.

3. The remaining $4, 000 on medical not collected out of civil case is a write off,
Last edited by lacompfun on Mon Apr 08, 2019 9:05 pm, edited 1 time in total.
lacompfun
 
Posts: 498
Joined: Mon Mar 09, 2015 11:58 am

Re: Third Party Credit (California) (California)

Postby jpod on Mon Apr 08, 2019 7:31 am

I don't understand the question and I am confused why you would assert credit against benefits that were already paid. Credit applies to unpaid accrued WC benefits.

What was written off in the example was was not $4,000, it was $15,000 of the $35,000 WC lien.
jpod
 
Posts: 771
Joined: Fri Mar 06, 2009 1:21 pm

Re: Third Party Credit (California) (California)

Postby vampireinthenight on Mon Apr 08, 2019 8:08 am

Generally speaking, the credit is for the net to the IW, so the $30K.\

Jopd is right. The credit is applied against benefits owed but not yet paid.
User avatar
vampireinthenight
 
Posts: 1128
Joined: Wed Mar 11, 2009 7:53 am

Re: Third Party Credit (California) (California)

Postby lacompfun on Mon Apr 08, 2019 9:03 pm

Got it. Thank you
lacompfun
 
Posts: 498
Joined: Mon Mar 09, 2015 11:58 am


Return to Legal

Who is online

Users browsing this forum: No registered users and 12 guests