Opinion ID: 1376417
Heading Depth: 2
Heading Rank: 1

Heading: the role of future due worker's compensation benefits

Text: Idaho statutes set up a scheme whereby an injured employee may hold a third party liable in tort for damages. I.C. § 72-223. [1] An employer who has paid compensation to the employee for the injury is subrogated to the rights of the employee to recover the amount paid from a third party. I.C. § 72-223(3). However, this Court has limited this right to subrogate in cases where the employer also has been determined to be negligent. Liberty Mutual Ins. Co. v. Adams, 91 Idaho 151, 155, 417 P.2d 417, 421 (1966); Schneider v. Farmers Merchant, 106 Idaho 241, 244, 678 P.2d 33, 36 (1983). Idaho case law has established a system of apportioning the employee's damages between the employer and third party based on I.C. § 72-223 where both the employer and third party are adjudged negligent. Schneider v. Farmers Merchant, 106 Idaho 241, 243, 678 P.2d 33, 35 (1983). See Runcorn v. Shearer Lumber Prods., 107 Idaho 389, 690 P.2d 324 (1984); Schneider v. Farmers Merchant, 106 Idaho 241, 678 P.2d 33 (1983); Tucker v. Union Oil Co. of California, 100 Idaho 590, 603 P.2d 156 (1979); Liberty Mut. Ins. Co. v. Adams, 91 Idaho 151, 417 P.2d 417 (1966). According to these cases, any verdict in an action by an employee against a third party must be reduced by the amount of the worker's compensation benefits paid to the employee. Runcorn, 107 Idaho at 395-96, 690 P.2d at 329; Schneider v. Farmers Merchant, 106 Idaho at 245, 678 P.2d at 37; Tucker v. Union Oil Co. of California, 100 Idaho at 604, 603 P.2d at 169; Liberty Mut. Ins. Co. v. Adams, 91 Idaho at 157, 417 P.2d at 423. This sound legal scheme satisfies several public policy interests including balancing the competing interests of a sheltered employer and an overburdened third party, ensuring against double recovery by an injured victim, preventing an employer and insurer from profiting by its own wrong, and protecting the third party's right of contribution for the comparative negligence of others. Runcorn, 107 Idaho at 396, 690 P.2d at 331. Therefore, we hold that the trial court correctly offset the verdict to reflect compensation benefits paid by JOB to Barnett. Eagle argues that this verdict should be reduced further to reflect JOB's total liability represented by past paid and future due compensation benefits. However, the foregoing legal precedent does not permit a trial court to reduce a verdict to reflect future due compensation benefits, but only addresses discounts qualified by past paid benefits. Indeed, Runcorn states unequivocally that: A special verdict form allows the jury to assign the appropriate percentage of liability to the employer in addition to the injured party and the third party. The third party is then allowed a reduction in damages by the percentage of liability attributed to the employer not to exceed the amount of workman's compensation benefits paid. Runcorn, 107 Idaho at 396, 690 P.2d at 328. (Emphasis added.) The trial court draws a legally correct distinction between paid and future due benefits, and reasonably resolves respondent's potential windfall by constraining respondent essentially to repay Eagle as future benefits are received up to the amount of JOB's liability. This solution does not result in double recovery by respondent, because respondent will simply be a conduit through which contribution will flow from JOB to Eagle, as such right to contribution accrues. Appellant's argument is seductive in its simplicity and administrative facility. However, there is no way of ascertaining exactly how much plaintiff will receive in the future as his entitlement is at least partially dependent on his longevity. Moreover, the jury verdict is to be paid in today's dollars and to offset the same by the present value of uncertain future dollars would diminish plaintiff's recovery in a manner not contemplated by the worker's compensation laws. Such result impermissibly shifts the risks of inflation, death, and loss of use-value to the innocent victim. The trial court's resolution is neither legally flawed nor the product of a manifest abuse of discretion, and the decision is thus affirmed.