Legal Question in Workers Comp in Arizona
Arizona Law
If a State employee is injured on the job by a third party- non-state emplyee, isn't it true that in order for the state employee to file a claim against the third party he or she must receive permission or assignment from the state before the claim is filed? Is the claim legal if the state employee files the claim without permission from the state? Is the attorney that filed the claim, if filed without state permission, also liable for sanctions against him and his client? Isn't it also true that if the state employee agrees to a settlement the state must approve the settlement and release any and all liens they feel they have against us?
I am asking the questions because I have always felt that the state employee that filed a claim against my wife and me was done improperly and without State approval. We have a counter claim against the state employee but our insurance company has done nothing but want the claim settled. We feel we have a legitimate claim against him. The state of Arizone is his secondary insurance provider.
1 Answer from Attorneys
Re: Arizona Law
This is technically a tort/personal injury question, but it has something to do with workers' compensation, so I will respond.
To the first question, the answer is no. During the first year after the accident, the lawsuit belongs to the injured party, and I always encourage injured workers to file their third-party lawsuits within that year. During the second year, it reverts to the employer/carrier (regardless of who that is) and the employee must obtain a "reassignment" from them, which they don't have to give or do so unconditionally.
So the answer to the rest of your questions stemming from that incorrect assumption is NO.
As for a settlement, the employer/carrier's approval is necessary only if the settlement will pay them back less than their lien amount (which is the total of all benefits paid to date.)
It sounds like you're trying to avoid liability on a technicality that doesn't exist. If your insurance company wants to settle and you don't, you might want to get some legal advice on how you may open yourself to liability that isn't covered by the insurance.
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