[§392-46]  Subrogation rights against thirdparties.  If any individual who has received benefits under this chapter isentitled to recover damages from a third person who is responsible for thesickness or accident causing the disability, the employer, the association ofemployers, the insurer, or the special fund for disability benefits, providingdisability benefits shall be subrogated to, and have a lien upon, the rights ofthe individual against the third party to the extent that the damages include wageloss during the period of disability for which temporary disability benefitswere received in the amount of such benefits.

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

 

Case Notes

 

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