Thomas v. Department of Developmental Services, 297 Conn. 391

Summary

The Supreme Court of Connecticut held that an employer's statutory lien under General Statutes § 31-293(a) includes a credit for unknown future workers' compensation benefits in the amount of an injured employee's net recovery from a third-party tortfeasor. The court concluded that the lien's scope is coextensive with the employer's statutory claim and affirmed the Compensation Review Board's decision.

Holdings

1. The scope of an employer's lien under General Statutes § 31-293(a) is coextensive with the scope of the employer's statutory claim and therefore includes a credit for unknown, future workers' compensation benefits in the amount of the employee's net proceeds from a third-party recovery.
2. The court declined to impose a requirement that the employer prove that a double recovery actually exists before applying the credit; § 31-293(a) gives the employer's claim precedence over the employee's claim in the third-party recovery.
3. The Department did not waive its claim to a credit for unknown future benefits by choosing to notify the plaintiff of its lien rather than filing a direct action against the third-party tortfeasor.

Questions Presented

1. Whether General Statutes § 31-293(a)'s statutory lien provision entitles an employer to a credit for unknown, future workers' compensation benefits in the amount of an injured employee's net proceeds from a third-party judgment or settlement.
2. Whether the employer waived its right to a future-benefit credit by notifying the plaintiff's counsel of the lien instead of filing a direct action against the third-party tortfeasor.
3. Whether the court should require an employer to prove that a double recovery actually exists before applying the statutory lien credit.

Disposition

affirmed