97A.14A LIABILITY OF THIRD PARTIES -- SUBROGATION.
1. If, on or after July 1, 2002, a member receives an injury or
dies for which benefits are payable under section 97A.6, subsection
3, 5, 8, or 9, or section 97A.14, and if the injury or death is
caused under circumstances creating a legal liability for damages
against a third party other than the system, the system, the member,
or the member's dependent or the trustee of the dependent may
maintain an action for damages against the third party as provided by
this section. If a member, the member's dependent, or the trustee of
the dependent commences such an action, the plaintiff member,
dependent, or trustee shall serve a copy of the original notice upon
the system not less than ten days before the trial of the action, but
a failure to serve the notice does not prejudice the rights of the
system, and the following rights and duties ensue:
a. The system shall be indemnified out of the recovery of
damages to the extent of benefit payments made by the system, with
legal interest, except that the attorney fees and expenses of the
plaintiff member, dependent, or trustee may be first allowed by the
district court.
b. The system has a lien on the damage claim against the
third party and on any judgment on the damage claim for benefits for
which the system is liable. In order to continue and preserve the
lien, the system shall file a notice of the lien within thirty days
after receiving a copy of the original notice in the office of the
clerk of the district court in which the action is filed.
2. If a member, the member's dependent, or the trustee of the
dependent fails to bring an action for damages against a third party
within ninety days after the system, through the board of trustees,
requests the member, the member's dependent, or the trustee of the
dependent in writing to do so, then the system is subrogated to the
rights of the member and may, by action of the board of trustees,
maintain the action against the third party, and may recover damages
for the injury or death to the same extent that the member, the
member's dependent, or the trustee of the dependent may recover
damages for the injury or death. If the system recovers damages in
the action, the court shall enter judgment for distribution of the
recovery as follows:
a. A sum sufficient to repay the system for the amount of
such benefits actually paid by the system up to the time of the
entering of the judgment.
b. A sum sufficient to pay the system the present worth,
computed at the interest rate provided in section 535.3 for court
judgments and decrees, of the future payments of such benefits for
which the system is liable until the member attains the age of
fifty-five, but the sum is not a final adjudication of the future
payment which the member is entitled to receive.
c. Any balance of the recovery remaining after distribution
of the recovery pursuant to paragraphs "a" and "b" shall be
paid to the member or the member's beneficiary.
3. Before a settlement is effective between the system and a
third party who is liable for any injury, the member, the member's
dependent, or the trustee of the dependent must consent in writing to
the settlement; and if the settlement is between the member, the
member's dependent, or the trustee of the dependent and a third
party, the system must consent in writing to the settlement; or on
refusal to consent, in either case, the workers' compensation
commissioner must consent in writing to the settlement.
4. For purposes of subrogation under this section, a payment made
to an injured member, the member's guardian, or the member's legal
representative, by or on behalf of a third party or the third party's
principal or agent, who is liable for, connected with, or involved in
causing the injury or death to the member, shall be considered paid
as damages because the injury or death was caused under circumstances
creating a legal liability against the third party, whether the
payment is made under a covenant not to sue, compromise settlement,
denial of liability, or is otherwise made.
5. All funds recovered by the system under this section shall be
deposited in the retirement fund created in section 97A.8.
97A.14A LIABILITY OF THIRD PARTIES -- SUBROGATION.
1. If, on or after July 1, 2002, a member receives an injury or
dies for which benefits are payable under section 97A.6, subsection
3, 5, 8, or 9, or section 97A.14, and if the injury or death is
caused under circumstances creating a legal liability for damages
against a third party other than the system, the system, the member,
or the member's dependent or the trustee of the dependent may
maintain an action for damages against the third party as provided by
this section. If a member, the member's dependent, or the trustee of
the dependent commences such an action, the plaintiff member,
dependent, or trustee shall serve a copy of the original notice upon
the system not less than ten days before the trial of the action, but
a failure to serve the notice does not prejudice the rights of the
system, and the following rights and duties ensue:
a. The system shall be indemnified out of the recovery of
damages to the extent of benefit payments made by the system, with
legal interest, except that the attorney fees and expenses of the
plaintiff member, dependent, or trustee may be first allowed by the
district court.
b. The system has a lien on the damage claim against the
third party and on any judgment on the damage claim for benefits for
which the system is liable. In order to continue and preserve the
lien, the system shall file a notice of the lien within thirty days
after receiving a copy of the original notice in the office of the
clerk of the district court in which the action is filed.
2. If a member, the member's dependent, or the trustee of the
dependent fails to bring an action for damages against a third party
within ninety days after the system, through the board of trustees,
requests the member, the member's dependent, or the trustee of the
dependent in writing to do so, then the system is subrogated to the
rights of the member and may, by action of the board of trustees,
maintain the action against the third party, and may recover damages
for the injury or death to the same extent that the member, the
member's dependent, or the trustee of the dependent may recover
damages for the injury or death. If the system recovers damages in
the action, the court shall enter judgment for distribution of the
recovery as follows:
a. A sum sufficient to repay the system for the amount of
such benefits actually paid by the system up to the time of the
entering of the judgment.
b. A sum sufficient to pay the system the present worth,
computed at the interest rate provided in section 535.3 for court
judgments and decrees, of the future payments of such benefits for
which the system is liable until the member attains the age of
fifty-five, but the sum is not a final adjudication of the future
payment which the member is entitled to receive.
c. Any balance of the recovery remaining after distribution
of the recovery pursuant to paragraphs "a" and "b" shall be
paid to the member or the member's beneficiary.
3. Before a settlement is effective between the system and a
third party who is liable for any injury, the member, the member's
dependent, or the trustee of the dependent must consent in writing to
the settlement; and if the settlement is between the member, the
member's dependent, or the trustee of the dependent and a third
party, the system must consent in writing to the settlement; or on
refusal to consent, in either case, the workers' compensation
commissioner must consent in writing to the settlement.
4. For purposes of subrogation under this section, a payment made
to an injured member, the member's guardian, or the member's legal
representative, by or on behalf of a third party or the third party's
principal or agent, who is liable for, connected with, or involved in
causing the injury or death to the member, shall be considered paid
as damages because the injury or death was caused under circumstances
creating a legal liability against the third party, whether the
payment is made under a covenant not to sue, compromise settlement,
denial of liability, or is otherwise made.
5. All funds recovered by the system under this section shall be
deposited in the retirement fund created in section 97A.8.
97A.14A LIABILITY OF THIRD PARTIES -- SUBROGATION.
1. If, on or after July 1, 2002, a member receives an injury or
dies for which benefits are payable under section 97A.6, subsection
3, 5, 8, or 9, or section 97A.14, and if the injury or death is
caused under circumstances creating a legal liability for damages
against a third party other than the system, the system, the member,
or the member's dependent or the trustee of the dependent may
maintain an action for damages against the third party as provided by
this section. If a member, the member's dependent, or the trustee of
the dependent commences such an action, the plaintiff member,
dependent, or trustee shall serve a copy of the original notice upon
the system not less than ten days before the trial of the action, but
a failure to serve the notice does not prejudice the rights of the
system, and the following rights and duties ensue:
a. The system shall be indemnified out of the recovery of
damages to the extent of benefit payments made by the system, with
legal interest, except that the attorney fees and expenses of the
plaintiff member, dependent, or trustee may be first allowed by the
district court.
b. The system has a lien on the damage claim against the
third party and on any judgment on the damage claim for benefits for
which the system is liable. In order to continue and preserve the
lien, the system shall file a notice of the lien within thirty days
after receiving a copy of the original notice in the office of the
clerk of the district court in which the action is filed.
2. If a member, the member's dependent, or the trustee of the
dependent fails to bring an action for damages against a third party
within ninety days after the system, through the board of trustees,
requests the member, the member's dependent, or the trustee of the
dependent in writing to do so, then the system is subrogated to the
rights of the member and may, by action of the board of trustees,
maintain the action against the third party, and may recover damages
for the injury or death to the same extent that the member, the
member's dependent, or the trustee of the dependent may recover
damages for the injury or death. If the system recovers damages in
the action, the court shall enter judgment for distribution of the
recovery as follows:
a. A sum sufficient to repay the system for the amount of
such benefits actually paid by the system up to the time of the
entering of the judgment.
b. A sum sufficient to pay the system the present worth,
computed at the interest rate provided in section 535.3 for court
judgments and decrees, of the future payments of such benefits for
which the system is liable until the member attains the age of
fifty-five, but the sum is not a final adjudication of the future
payment which the member is entitled to receive.
c. Any balance of the recovery remaining after distribution
of the recovery pursuant to paragraphs "a" and "b" shall be
paid to the member or the member's beneficiary.
3. Before a settlement is effective between the system and a
third party who is liable for any injury, the member, the member's
dependent, or the trustee of the dependent must consent in writing to
the settlement; and if the settlement is between the member, the
member's dependent, or the trustee of the dependent and a third
party, the system must consent in writing to the settlement; or on
refusal to consent, in either case, the workers' compensation
commissioner must consent in writing to the settlement.
4. For purposes of subrogation under this section, a payment made
to an injured member, the member's guardian, or the member's legal
representative, by or on behalf of a third party or the third party's
principal or agent, who is liable for, connected with, or involved in
causing the injury or death to the member, shall be considered paid
as damages because the injury or death was caused under circumstances
creating a legal liability against the third party, whether the
payment is made under a covenant not to sue, compromise settlement,
denial of liability, or is otherwise made.
5. All funds recovered by the system under this section shall be
deposited in the retirement fund created in section 97A.8.
