McConnaughhay, Coonrod, Pope, Weaver, Stern & Thomas, P.A.

Workers' Compensation

Maryland Cas. Co. v. Smith

272 So.2d 517, (Fla., Jan 17, 1973)

The issue in this case is whether settlement by the injured employee without notice to the carrier injured by a third party tort feasor bars suit in the second year by the employer to an equitable distribution of the settlement. The rights of the employee and employer are concurrent in filing suit against the third party. In this case the employee settled with the third party in the second year without notifying the employer/carrier and before the employer/carrier filed an action against the third party. Court held that the employee did not have to notify the employer/carrier of the settlement and therefore the carrier could only get an equitable settlement (rather than the full amount it had paid) of the proceeds of the settlement. Although notice is not required the lack of notice might effect the determination of the fairness of the settlement. i.e. the employer might have expended funds in the second year suit or the employee and the third party might have acted in bad faith to cut off the claim of the carrier. Also the court can consider whether the carrier's participation in the settlement might have increased the settlement amount. Statutory change.

Cases

Workers' Compensation

Maryland Cas. Co. v. Smith