Bacon v. DBI/SALA

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Employee was severely injured while working for Employer. Employer and its Insurer began paying lifetime workers' compensation benefits. Employee brought a separate negligence action against Employer's parent company (Ridgetop) and joined Employer and Insurer for workers' compensation subrogation purposes. Employee reached a settlement agreement with Ridgetop, after which the trial court granted Employer and Insurer's motion, pursuant to Neb. Rev. Stat. 48-118, for a future credit in the amount of Employee's settlement with Ridgetop against its continuing workers' compensation obligations. The Supreme Court affirmed in part and reversed in part the order granting the future credit, holding (1) the trial court did not err in granting the motion for credit against the settlement proceeds Employee received from Employer; (2) Insurer did not waive its right to a future credit through a waiver clause in the policy or statements during settlement negotiations; but (3) the trial court erred in granting the credit for the entire amount of the settlement. Remanded for the limited purpose of deducting $437,500 - the amount paid to Insurer and an indemnity company - out of the settlement and for determining the amount of attorney fees to additionally be deducted from the amount of the credit. View "Bacon v. DBI/SALA" on Justia Law