Opinion ID: 2559428
Heading Depth: 1
Heading Rank: 3

Heading: Lien for Benefits Paid

Text: [¶ 26] Calculating the portion of the Trust's lien attributable to benefits paid is a relatively straightforward task. Upon settlement with a third party, 39-A M.R.S. § 107 (2009) entitles the employer to a lien for the value of compensation paid, and requires the employee to repay to the employer, out of the recovery against the 3rd person, the benefits paid by the employer under this Act, less the employer's proportionate share of cost of collection, including reasonable attorney's fees. In this case, the Superior Court correctly determined that the Trust was entitled to a lien in the amount of $210,746.22 for benefits paid. Prior to discontinuing payments on August 11, 2006, the Trust had paid Dennis $340,404.86 in workers' compensation benefits. [8] After reducing this amount by the Trust's proportionate share of costs ($16,190.36) and attorney fees ($113,468.28), the court correctly arrived at the $210,746.22 figure. [¶ 27] In accordance with section 107's clear mandate, this amount should have been paid to the Trust out of the recovery against the 3rd person. The law firm failed to do this. After the court determined the amount of the Trust's lien for benefits paid, it should have ordered that amount immediately payable pursuant to section 107. The court erred in attaching the Trust's lien to the escrowed funds and Dennis's annuity payments.