Court Opinion

ID: 9720456
Source: CourtListenerOpinion
Date Created: 2023-08-26 08:31:17.085338+00
Date Added: 2024-06-11T18:24:18.557393
License: Public Domain

Mallett, J.
(concurring in part and dissenting in part). I concur in the result reached by the lead opinion that the third-party tort recoveries obtained by the spouse and children of a deceased employee in a wrongful death action are subject to the employer’s reimbursement lien. However, I disagree that the reimbursement provision of § 827(5) also applies to the loss of society and companionship damages allocated to the non-dependent parents of a deceased employee. Because I believe that application of the reimbursement provision of § 827(5) to a third-party tort recovery is dependent upon whether the recipient of the recovery is eligible for compensation benefits, I respectfully dissent from part iv(c) of the lead opinion that subjects those portions of third-party tort recoveries awarded to persons ineligible to receive compensation benefits to the employer’s reimbursement lien.
The lead opinion asserts that the damages awarded to the decedent’s parents for loss of society and companionship are subject to the employer’s reimbursement lien because "[tjhere is no indication in § 827(5) that it is necessary to evaluate the eligibility of the tort-recovery recipient for compensation benefits before allowing the employer or compensation carrier to be reimbursed out of any recovery obtained.” Ante, p 212. I disagree.
Pursuant to § 827(5), the employer is entitled to reimbursement from any tort recovery, and any remaining excess is considered a credit toward future compensation benefits that may be owed. Thus, if The Budd Company is liable for continuing payments, no payments will have to be made *219until the total amount due exceeds the amount of the advance payment credit. Without determining whether the recipient of damages from a wrongful death action or any third-party tort action is eligible to receive compensation benefits, the lead opinion would give the employer credit for a portion of the recovery not enjoyed by workers’ compensation beneficiaries.*
For these reasons, I would hold that status of the claiming party dictates whether the employer’s lien attaches for reimbursement of compensation benefits paid or payable under the act.

 See the example set forth in Justice Boyle’s dissenting opinion, p 232, n 11.