Does a Workers’ Comp Settlement Bar You From Filing a Personal Injury Lawsuit?

In general, you can file a personal injury lawsuit against any individual or legal entity whose negligence caused you some harm. One exception to this rule is for accidents and injuries that occur within the scope of your employment. In those situations, you typically cannot file a personal injury claim against your employer, because you are covered by workers’ compensation.

Workers’ compensation requires Georgia employers to maintain their own workers’ comp insurance, which provides medical and wage replacement benefits to employees for an on-the-job injury. Georgia law considers workers’ compensation to be an “exclusive remedy” for such injuries. This exclusive remedy, however, does not apply to third parties. So if someone other than your employer caused, or contributed to, your accident, you are still free to file a personal injury lawsuit against that third party.

Rear-End Car Accident Victim May Proceed with Lawsuit

A recent Georgia Court of Appeals decision, Hayes v. KSP Services, LLC, addressed the potential for a conflict between a workers’ compensation settlement and a third-party personal injury lawsuit arising from the same accident. In this case, the plaintiff was driving one of his employer’s vehicles when he got into a rear-end car accident with a vehicle driven by the employee of another company.

The plaintiff first filed a workers’ compensation claim with his own employer. The parties then reached what is called a “no liability” settlement. Basically, the employer agreed to pay the plaintiff $45,000 in exchange for agreeing to a dismissal of his claim by the State Board of Workers’ Compensation. This settlement released the employer from any further liability for the car accident.

The plaintiff then filed a separate personal injury lawsuit against the other driver and his employer. These defendants moved to dismiss the case at summary judgment, arguing that the plaintiff was “judicially estopped” from suing them because he previously stipulated that he did not sustain an injury in his workers’ compensation settlement. The trial court granted the defense motion.

The Court of Appeals reversed, however, holding the law did not bar the plaintiff’s personal injury lawsuit. First, the appellate court noted that Georgia’s workers’ compensation statute explicitly states that a settlement with an employer does not deprive an employee of their right to sue a third-party for their injuries. Second, judicial estoppel is meant to prevent a party from trying to “manipulate” the court system by raising contradictory arguments. That was not the case here. Indeed, the workers’ compensation claim only addressed whether the plaintiff suffered a “compensable injury” as defined by the statute. That is separate from whether the plaintiff sustained a personal injury in a civil tort action.

Finally, the Court of Appeals noted Georgia law also provides for subrogation. What this means is that if the plaintiff does recover damages from the defendants, the plaintiff’s employer could seek to reclaim part of that award as reimbursement for the workers’ compensation settlement. This prevents the plaintiff from “double dipping,” i.e., receiving compensation for the same injury twice.

Contact Hawkins Spizman Trial Lawyers Today

If you are injured in a car accident, there may be a number of parties who can be held legally and financially responsible to you. A qualified Alpharetta personal injury lawyer can review your case and advise you accordingly. Call Hawkins Spizman Trial Lawyers today to schedule a free consultation. We serve clients throughout Georgia including Atlanta, Dunwoody, Alpharetta, Cobb County, Fulton County, Gwinnett County, Johns Creek and Sandy Springs.

Source:

efast.gaappeals.us/download?filingId=bbf35fcb-c6a8-4da1-9dd4-e9ab0d5a3d5b