2017 Maryland Code
Labor and Employment
Title 9 - Workers' Compensation
Subtitle 9 - Liability of Third Parties
§ 9-902. Action against third party after award or payment of compensation

  • (a) Action by self-insured employer, insurer, or fund. -- If a claim is filed and compensation is awarded or paid under this title, a self-insured employer, an insurer, the Subsequent Injury Fund, or the Uninsured Employers' Fund may bring an action for damages against the third party who is liable for the injury or death of the covered employee.
  • (b) Recovery of damages exceeding compensation and other payments. -- If the self-insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers' Fund recovers damages exceeding the amount of compensation paid or awarded and the amount of payments for medical services, funeral expenses, or any other purpose under Subtitle 6 of this title, the self-insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers' Fund shall:
    • (1) deduct from the excess amount its costs and expenses for the action; and
    • (2) pay the balance of the excess amount to the covered employee or, in case of death, the dependents of the covered employee.
  • (c) Action by covered employee or dependents. -- If the self-insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers' Fund does not bring an action against the third party within 2 months after the Commission makes an award, the covered employee or, in case of death, the dependents of the covered employee may bring an action for damages against the third party.
  • (d) Limitations period. -- The period of limitations for the right of action of a covered employee or the dependents of the covered employee against the third party does not begin to run until 2 months after the first award of compensation made to the covered employee or the dependents under this title.
  • (e) Distribution of damages. -- If the covered employee or the dependents of the covered employee recover damages, the covered employee or dependents:
    • (1) first, may deduct the costs and expenses of the covered employee or dependents for the action;
    • (2) next, shall reimburse the self-insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers' Fund for:
      • (i) the compensation already paid or awarded; and
      • (ii) any amounts paid for medical services, funeral expenses, or any other purpose under Subtitle 6 of this title; and
    • (3) finally, may keep the balance of the damages recovered.
  • (f) Court costs and attorney's fees. -- In an action brought by a covered employee or the dependents of the covered employee under subsection (c) of this section, the covered employee or the dependents of the covered employee, the self-insured employer, the insurer, the Subsequent Injury Fund, and the Uninsured Employers' Fund shall pay court costs and attorney's fees in the proportion that the amount received by each bears to the whole amount paid in settlement of any claim or satisfaction of any judgment obtained in the case.
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