This is an important issue, one that periodically pops its head up. Subrogation involves reimbursing the party paying the benefits from the proceeds of a lawsuit or claim. Here, the Ohio Bureau of Workers’ Compensation has the right to subrogate an injured worker and two insurers related to payments they made regarding her work-related injury, according to the Ohio Supreme Court. What is interesting in this case is that the BWC had denied this woman's claim. The trial court granted Ms. Verlinger’s motion for summary judgment, finding that because the bureau had rejected Ms. Verlinger’s benefits application at the time she settled with the two insurers, she was not a claimant under the subrogation statute — a decision affirmed on appeal. But the Ohio Supreme Court vacated the decision and remanded the case after finding that Ms. Verlinger was a claimant under the statute because she was eligible to receive comp benefits at the time she settled her claims with the insurers and failed to provide the bureau and the attorney general with a “reasonable opportunity to assert their subrogation rights.” The Ohio Supreme Court also found that Ms. Verlinger and the insurers were “jointly and severally liable” for the full amount owed to the bureau. “We understand Foremost’s argument that it is unfair to hold a third party jointly and severally liable without regard to its knowledge of any subrogation rights,” the court said. “However, this is a policy argument best made to the General Assembly.”
This is not a minor issue. I represent insurers and corporations sued by individuals. What this tells me that if someone's hurt on the job and even if the claim is denied, I must put BWC on notice and get their consent -- or face double payment.
Attachment 23445
Ohio Comp Bureau Can Subrogate Benefits Costs: State High Court