Court Opinion

ID: 9551103
Source: CourtListenerOpinion
Date Created: 2023-08-07 18:47:48.394406+00
Date Added: 2024-06-11T15:23:04.190161
License: Public Domain

Lockett, J.,
concurring and dissenting: I cannot agree with the majority’s determination that the district court correctly construed K.S.A. 44-504.
The district court stated in its memorandum decision and order:
“K.S.A. 44-504(b) provides in substance that whenever an injured worker covered by Workers’ Compensation recovers a judgment or settlement from a third party, the employer shall be subrogated to the extent of the compensation and medical aid provided and that the amount of such judgment or settlement shall be credited against future payments of compensation. The statute does not appear to be ambiguous. Its use of the word ‘shall’ indicates that the subrogated Workers’ Compensation benefits would have priority over any other expenses incurred by the claimant when a recovery has been made from a negligent third party. The claimant’s contention that he is entitled to offset some $2,273.62 for lost pay and destroyed personal property which were not covered by Workers’ Compensation does not appear to be meritorious. The statutes provide no *200exception for other damages sustained by the claimant to be deducted prior to the subrogation of Workers’ Compensation benefits. It appears that Workers’ Compensation benefits have priority over any other damages in determining the amount of the settlement or judgment which is subject to subrogation.”
Under this interpretation, an employer is entitled to recover all compensation the employer has paid under the Workmen’s Compensation Act from a judgment or settlement its worker obtained from a third party, including that portion of the judgment or settlement not compensable under the Act. The trial court makes no distinction between a general or a specific judgment or settlement.
What happens under the following circumstances?
(1) While driving his own automobile on the job, an employee is involved in a two-car accident with a third party who is totally at fault.
(2) Under the Act, the employer pays $10,000 compensation to its employee. The employer is reimbursable under K.S.A. 44-504(b).
(3) The employee has an insurance policy which contains a $500 deductible provision. The insurance carrier pays $5000 to repair the damages to the employee’s car.
(4) The employee sues the third party for all damages he has suffered because of the third party’s negligence. At trial the jury returns a general verdict in the amount of $11,000.
Under the majority’s decision the employer would be entitled to receive $10,000 reimbursement under the Act. The insurance company would be entitled to only $1,000 because the Act requires that the employer be fully reimbursed. The employee would not be compensated for the $500 he paid to have his car-repaired.
Under the same facts, what if the jury had returned a specific verdict which provided for the following:
(1) $5,000 for personal injuries and loss of wages;
(2) $5,000 for damage to the automobile?
Here the district court would award the total $10,000 to the employer as reimbursement under the Act. Neither the insurance carrier nor the injured worker would be entitled to any reimbursement or compensation for their losses.
The purpose of K.S.A. 44-504 is to insure that the injured worker does not receive a double recovery. The employer should be reimbursed only from that portion of a settlement or judgment *201that would be compensable under the Act. That is the intent of the legislature.
I would remand the case back to the district court for it to determine the specifics of the settlement entered into between the worker and the third party.
Prager and Herd, JJ., join in the foregoing concurring and dissenting opinion.