Hawkins v. Southwest Kansas Co-op Service
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In this case concerning the application of the statutory scheme permitting an employer that has provided workers compensation benefits to an injured employee to obtain both a subrogation interest in any recovery the employee receives from a third party and a credit for future benefits, the Supreme Court held that the Workers Compensation Board used the improper method for determining the subrogation lien and the future credit.
In Employee's third party negligence action, the jury decided both the fault of Employer and the measure of Employee's damages from his workplace injury. The Board applied the jury's finding of fault to Employee's settlement with one of several defendants in his negligence action to compute the reduction in Employer's subrogation lien and future credit for workers compensation benefits it provided or will provide to Employee. The Supreme Court reversed, holding (1) consistent with Kan. Stat. Ann. 44-504(b), Employer's credit for future benefits should have been determined using each annual settlement payment to Employee from one of the third-party defendants when the payment was received; and (2) the Board erred in aggregating those payments and relying on the total amount when Employee would not receive the last installment for twenty years.
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