Subrogation

Experts in Subrogation Law

With years of litigation experience against insurance companies, Michael Sullivan & Associates is proud to have represented many successful settlements with our Subrogation Law Unit. Our Subrogation Law team prosecutes your reimbursement rights against the negligent third party and their insurance company. Insurance claims can be confusing, coming with many questions and concerns. Our Subrogation Law team helps you navigate these claims to ensure you are treated fair with insurance companies.

An employer who is obligated to pay workers' compensation benefits or has paid benefits as a result of an injury caused by a third party has three courses for pursuing reimbursement from the the third party:

#1

The employer may bring an action directly against the third party.

#2

The employer may join as a party plaintiff or intervene in an action brought by the employee.

#3

The employer may allow the employee to prosecute the action and then apply for a first lien against the resulting judgment or settlement.

What is Subrogation?

Where the employer becomes liable for workers' compensation benefits as a result of the negligence of a third party, the employer has a right of recovery, also referred to as a right of subrogation, against the negligent third party. The employer's subrogation rights are covered by Labor Code §§ 3850 – 3865, which include credit provisions and reimbursement provisions. However, the workers' compensation statutes governing actions against third parties do not define the substantive law regarding recovery in civil action. The law that usually governs actions against third parties is general tort law. In order to protect your subrogation interests an action is filed in Superior Court in the venue where the accident took place. MS&A attorneys handle cases in every venue throughout the state of California.

Subrogation impacts the bottom line of any workers' compensation program. Our firm works to enforce the public policy to reduce the cost of compensation insurance by allowing carriers to recoup payments. Subrogation should not be an afterthought, but rather any robust workers' compensation program should always consider subrogation at the onset. Our firm provides training for employers and claims examiners to properly recognize and handle subrogation opportunities.

Who Has Subrogation Rights?

Subrogation rights are given to the employer, the insurance carrier, the Self-Insurers' Security Fund and the Uninsured Employers Benefits Trust Fund.

Why is Subrogation Important?

The subrogation provisions prevent a double recovery to an employee who makes both a workers' compensation claim and we ensure the party that caused the injury is financially held responsible, not your program.