Does a settlement of a claim for reimbursement of past benefits affect the employer's right to obtain a credit for future benefits?

California, United States of America


The following excerpt is from Bailey v. Reliance Insurance Co., 79 Cal.App.4th 449, 94 Cal.Rptr.2d 149 (Cal. App. 2000):

The employer's or carrier's settlement of its claim for reimbursement of past benefits (often called its "lien claim") does not affects its right to obtain a credit for future benefits. (See, e.g., Curtis v. State of California ex rel. Dept of Transportation (1982) 128 Cal.App.3d 668, 683 ["[T]he waiver, failure to assert, or settlement of a lien claim in a civil action is not necessarily a settlement or waiver of the credit right. . . . [] . . . The right to a credit [and the right to a] reimbursement are separate and distinct rights and the waiver of a right to reimbursement does not mean that a credit right has been waived."].) This is because the employer or carrier, in its independent action against the third party tortfeasor, "cannot recover for workers' compensation benefits not yet determined by the appeals board."5 (Herr v. Workers' Comp. Appeals Bd. (1979) 98 Cal.App.3d 321, 327.)

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