Is an employer's claim for reimbursement under section 3852 of the California Motor Vehicle Accident and Accident Compensation Act limited to recovery for damages proximately caused by the accident?

California, United States of America


The following excerpt is from Breese v. Price, 176 Cal.Rptr. 791, 29 Cal.3d 923, 633 P.2d 987 (Cal. 1981):

[29 Cal.3d 928] The foregoing section contemplates the employee's recovery in tort for "all damages proximately resulting from such injury or death against any person other than the employer." (Italics added.) In turn, the employer "may likewise make a claim or bring an action against such third person." (Italics added.) Reasonably read, the statutory language contemplates that the employer's (or the carrier's) action for reimbursement is similarly limited to recovery for damages proximately caused by the injury. Indeed, it would be anomalous for an employer or insurer to recover damages greater, in nature or amount, than those afforded the injured employee. Consistently, we have held that "Substantively, as well as procedurally, employer and employee actions are interchangeable: regardless of who brings an action, it is essentially the same lawsuit." (County of San Diego v. Sanfax Corporation (1977) 19 Cal.3d 862, 874, 140 Cal.Rptr. 638, 568 P.2d 363.) Section 3852 does not enlarge the tort remedy of a compensation carrier beyond that of the injured employee.

Page 795

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