Is there a duty on a third party tortfeasor to notify an employer of a settlement where the employer's right to reimbursement is in jeopardy?

California, United States of America


The following excerpt is from O'Dell v. Freightliner Corp., 10 Cal.App.4th 645, 12 Cal.Rptr.2d 774 (Cal. App. 1992):

We disagree with the Popovich reasoning in one respect. Imposition of a duty on the third-party tortfeasor to notify an employer of an impending settlement where the third party knows the employer's right to reimbursement is in jeopardy would serve the public policy of allowing the employer to recoup benefits it has paid where the expense of those benefits properly should fall on the third party. (County of San Diego v. Sanfax Corp., supra, 19 Cal.3d at p. 872, 140 Cal.Rptr. 638, 568 P.2d 363.)

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