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Workers’ Compensation Carrier Has an Automatic Lien Re: Recovery by Injured Worker Against Third-Parties

The Fourth Department noted that a workers’ compensation carrier has a lien against any settlement the worker reaches with a third-party:

Where an individual receiving workers’ compensation benefits commences a civil action against a tortfeasor “not in the same employ who caused the injuries giving rise to such benefits . .. , an automatic lien attaches to the proceeds of any recovery, in favor of the [worker’s compensation carrier], for any amounts that the [carrier] has paid in compensation benefits, less litigation costs and amounts received in lieu of first[-]party benefits under the no-fault law” … . Klem v Special Response Corp, 2015 NY Slip Op 01368, 4th Dept 2-13-15

 

 

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