Legal Question in Workers Comp in California
discharge in bankruptcy
I am being sued along with a company I was involved with. An employee was injured, hurt knee, and their worker's comp lapsed a few weeks earlier. I am now being sued for $600K in loss of work punitive damages etc. I don't have themoney to fight the case. If they get a judgement against me, can it be discharged under chapter 7 bankruptcy?
2 Answers from Attorneys
Re: discharge in bankruptcy
It depends on several factors whether the judgement creditor can block a discharge in Bankruptcy and/or collect against you personally. Suggest you contact us for a free initail consultation. See our web site at www.palmer-tran.com for more information
Re: discharge in bankruptcy
This would rely on a bankruptcy court, the facts of the case and your disposition.
One problem with your question is that I am not sure what role you played, if any towards the employee's injury. Therefore, it would be very difficult to answer questions relating to your facts, or the lack thereof. If this is in fact a pure comp claim, the injured worker would have to be struck on the head with a bowling ball in order for there to be a $600k claim. That leaves us with a Serious and Willful and a 132a. A 132a claim is the comp version of a wrongful termination claim and it basically increases comp benefits. A serious and willful is where the employer request that the employee operates a machine which the employer knows is faulty, which causes the injury.
All that is left is a 3rd party case. This is where an accident is caused by a third party during the scope and course of the employee�s duties, but the accident is caused by the third party. An example would be where a pizza delivery driver is involved in a car accident because a third party blows a traffic light. The driver would be entitled to comp benefits from his employer plus he would be entitled to sue the driver that blew the light. The driver that caused the accident would be the �third party.�
Which category do you fall under? If you�re the third party, it�s irrelevant whether or the employer has comp insurance.
In any event, if you were the employer, your claim will be referred to the Uninsured Employer's Fund (They recently changed their name to something else) which is a State agency. They will fight the claim as though you had insurance, then they will come after you for all the medical costs, legal fees, permanent disability, etc....the entire bucket of costs. They can place a lien on you home, and your entire life as well.
I think that you should seek legal counsel as this is a very serious predicament that you are in.
Please feel free to contact my office at 818.385.0520.