McKeeman v. Cianbro Corp., 2002 ME 144

Summary

The Supreme Judicial Court of Maine held that an employer's proportionate share of settlement-related attorney fees and costs under Maine's workers' compensation lien statute must reflect both benefits already paid and future compensation liability relieved by the employee's third-party settlement. The court vacated the Superior Court's repayment judgment and remanded for calculation of the employer's share by comparing its full benefit from the settlement with the total settlement value.

Holdings

1. Under 39-A M.R.S.A. § 107, an employer's proportionate share of attorney fees and costs arising from an employee's third-party settlement must be calculated with reference to both benefits previously paid and future workers' compensation liability relieved by the settlement, to the extent that future liability can be determined.
2. The employer's proportionate share should be calculated by comparing the employer's full benefit from the settlement, including past benefits paid and the present value of future liability relieved, with the total settlement value.

Questions Presented

1. How should an employer's proportionate share of the costs of an employee's third-party settlement be calculated under 39-A M.R.S.A. § 107?
2. Does the employer's proportionate share include costs attributable to future workers' compensation liability relieved by the settlement, in addition to benefits already paid?

Disposition

reversed_and_remanded