SF 1902

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to workers' compensation; modifying 
  1.3             third-party liability provisions; amending Minnesota 
  1.4             Statutes 1996, section 176.061, subdivision 6.  
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1996, section 176.061, 
  1.7   subdivision 6, is amended to read: 
  1.8      Subd. 6.  [COSTS, ATTORNEY FEES, EXPENSES.] The proceeds of 
  1.9   all actions for damages or of a settlement of an action under 
  1.10  this section, except for damages received under subdivision 5, 
  1.11  clause (b) received by the injured employee or the employee's 
  1.12  dependents or by the employer or the special compensation fund, 
  1.13  as provided by subdivision 5, shall be divided as follows: 
  1.14     (a) After deducting the reasonable cost of collection, 
  1.15  including but not limited to attorneys fees and burial expense 
  1.16  in excess of the statutory liability, then 
  1.17     (b) One-third of the remainder shall in any event be paid 
  1.18  to the injured employee or the employee's dependents, without 
  1.19  being subject to any right of subrogation. 
  1.20     (c) Out of the balance remaining, the employer or the 
  1.21  special compensation fund shall be reimbursed in an amount equal 
  1.22  to all benefits paid under this chapter to or on behalf of the 
  1.23  employee or the employee's dependents by the employer or special 
  1.24  compensation fund, less the product of the costs deducted under 
  1.25  clause (a) divided by the total proceeds received by the 
  2.1   employee or dependents from the other party multiplied by all 
  2.2   benefits paid by the employer or the special compensation fund 
  2.3   to the employee or the employee's dependents.  If the employee 
  2.4   or the employee's dependents brought the action, then this 
  2.5   amount deducted from the benefits paid shall be reimbursed to 
  2.6   the party bringing the action.  
  2.7      (d) Any balance remaining shall be paid to the employee or 
  2.8   the employee's dependents, and the balance, less its 
  2.9   proportionate share of costs deducted under clause (a), shall be 
  2.10  a credit to the employer or the special compensation fund for 
  2.11  any benefits which the employer or the special compensation fund 
  2.12  is obligated to pay, but has not paid, and for any benefits that 
  2.13  the employer or the special compensation fund is obligated to 
  2.14  make in the future. 
  2.15     There shall be no reimbursement or credit to the employer 
  2.16  or to the special compensation fund for interest or penalties.  
  2.17  Failure of the employer to cooperate with the employee or the 
  2.18  employee's dependents in efforts to pursue a claim against a 
  2.19  third-party tortfeasor shall constitute waiver of the employer's 
  2.20  right of subrogation reimbursement to past payments as well as 
  2.21  to future credits.