[§392-46]  Subrogation rights against third
parties.  If any individual who has received benefits under this chapter is
entitled to recover damages from a third person who is responsible for the
sickness or accident causing the disability, the employer, the association of
employers, the insurer, or the special fund for disability benefits, providing
disability benefits shall be subrogated to, and have a lien upon, the rights of
the individual against the third party to the extent that the damages include wage
loss during the period of disability for which temporary disability benefits
were received in the amount of such benefits.



If the individual commences an action against
such third party, the individual shall notify the individual's employer, or the
director if the individual is unemployed, of the action and the court in which
it is pending.  The employer, the association of employers, the insurer, or the
special fund for disability benefits, providing disability benefits may join as
party plaintiff or claim a lien on the amount of any judgment recovered by the
individual in such action to the extent of its subrogation rights.  If the
individual does not commence the action within nine months after the
commencement of the sickness or the date of the accident causing the
disability, the employer, the association of employers, the insurer, or the
special fund for disability benefits, providing temporary disability benefits
may commence such action, but the individual shall be entitled to join the
action and be entitled to any surplus over the amount to which the employers,
the association of employers, the insurer, or the special fund for disability
benefits is subrogated. [L 1969, c 148, pt of §1; gen ch 1985]



 



Case Notes



 



  Temporary disability insurance carrier is not entitled to
full reimbursement of benefits from its insured's employee under section's
subrogation and lien rights when employee receives a "general damages
only" settlement from tortfeasor.  73 H. 403, 833 P.2d 890.