65.2-309 - Lien against settlement proceeds or verdict in third party suit; subrogation of employer to employee's rights against third parties; evidence; recovery; compromise.
§ 65.2-309. Lien against settlement proceeds or verdict in third party suit;subrogation of employer to employee's rights against third parties; evidence;recovery; compromise.
A. A claim against an employer under this title for injury, occupationaldisease, or death benefits shall create a lien on behalf of the employeragainst any verdict or settlement arising from any right to recover damageswhich the injured employee, his personal representative or other person mayhave against any other party for such injury, occupational disease, or death,and such employer also shall be subrogated to any such right and may enforce,in his own name or in the name of the injured employee or his personalrepresentative, the legal liability of such other party. The amount ofcompensation paid by the employer or the amount of compensation to which theinjured employee or his dependents are entitled shall not be admissible asevidence in any action brought to recover damages.
B. Any amount collected by the employer under the provisions of this sectionin excess of the amount paid by the employer or for which he is liable shallbe held by the employer for the benefit of the injured employee, his personalrepresentative, or other person entitled thereto, less a proportionate shareof such amounts as are paid by the employer for reasonable expenses andattorney's fees as provided in § 65.2-311.
C. No compromise settlement shall be made by the employer in the exercise ofsuch right of subrogation without the approval of the Commission and theinjured employee or the personal representative or dependents of the deceasedemployee being first obtained.
D. If an injured employee, his personal representative, or a person acting onbehalf of the injured employee receives the proceeds of the settlement orverdict and the employer's lien pursuant to subsection A has not beensatisfied, the employer shall have the right to recover its lien either as acredit against future benefits or through a civil action against the personwho received the proceeds.
(Code 1950, § 65-38; 1960, c. 89; 1968, c. 660, § 65.1-41; 1991, c. 355;2004, cc. 914, 941.)