Opinion ID: 1058552
Heading Depth: 1
Heading Rank: 6

Heading: Enforcement of Subrogation Lien

Text: The trial court found that Continental had not fully or partially paid and discharged its liability to Hickman under Tennessee Code Annotated section 50-6-112(c)(1) and therefore held that Continental was not entitled to be reimbursed for the benefits that it had previously paid. In this respect, the trial court erred. Subrogation liens of employers providing workers' compensation are governed by Tennessee Code Annotated section 50-6-112. Tennessee Code Annotated section 50-6-112(a) permits an injured employee who receives workers' compensation benefits to pursue an action against a third-party tortfeasor who caused or contributed in causing the employee's injury. [3] To prevent the employee from receiving a double recovery, however, Tennessee Code Annotated section 50-6-112(c) provides that the injured worker's employer shall have a subrogation lien against any recovery the employee receives from the third party as well as a credit against any future liability that accrues. Tennessee Code Annotated section 50-6-112(c)(1) provides, In [the] event of such recovery against such third person by the worker ... by judgment, settlement or otherwise, and the employer's maximum liability for workers' compensation under this chapter has been fully or partially paid and discharged, the employer shall have a subrogation lien therefor against such recovery, and the employer may intervene in any action to protect and enforce such lien. Issues of statutory construction are questions of law that are reviewed de novo with no presumption of correctness given to the trial court's conclusions. Moore v. Town of Collierville, 124 S.W.3d 93, 97 (Tenn.2004). We must examine the language of the statute and if the language is unambiguous apply the ordinary and plain meaning. Parks v. Tenn. Mun. League Risk Mgmt. Pool, 974 S.W.2d 677, 679 (Tenn.1998). The language of Tennessee Code Annotated section 50-6-112(c)(1) is clear and unambiguous. Under this section, the employer is entitled to a subrogation lien against the employee's third-party recovery if the employer has fully or partially paid and discharged its maximum workers' compensation liability. Continental partially paid and discharged its maximum workers' compensation liability by paying a total of $84,216.74 in workers' compensation benefits for Hickman's July 4, 1994 injury: $15,311.60 in temporary total disability benefits, $16,842.76 in permanent partial disability benefits, and $52,062.38 in medical expenses. Consequently, Continental is entitled to a subrogation lien under the statute in the amount of $84,216.74, representing amounts previously paid to the employee or on his behalf.