MISSISSIPPI LEGISLATURE
2019 Regular Session
To: Insurance; Judiciary A
By: Representative Tullos
AN ACT TO AMEND SECTION 71-3-71, MISSISSIPPI CODE OF 1972, TO REVISE THE WORKERS' COMPENSATION LAW PROVISIONS WHEREBY THERE IS A THIRD PARTY ACTION, TO GIVE THE COURT OR COMMISSION DISCRETION ON THE APPORTIONMENT OF CERTAIN AMOUNTS RECOVERED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 71-3-71, Mississippi Code of 1972, is amended as follows:
71-3-71. The acceptance of
compensation benefits from or the making of a claim for compensation against an
employer or insurer for the injury or death of an employee shall not affect the
right of the employee or his dependents to sue any other party at law for such
injury or death, but the employer or his insurer shall be entitled to
reasonable notice and opportunity to join in any such action or may intervene
therein. If such employer or insurer join in such action, they * * * may be entitled to repayment of
the amount paid by them as compensation and medical expenses from the net
proceeds of such action (after deducting the reasonable costs of collection) as
hereinafter provided.
The commencement of an
action by an employee or his dependents (or legal representative) against a
third party for damages by reason of the injury, or the adjustment of any such
claim, shall not affect the right of the injured employee or his dependents (or
legal representative) to recover compensation, but any amount recovered by the
injured employee or his dependents (or legal representative) from a third party
shall be applied as follows: reasonable costs of collection as approved and
allowed by the court in which such action is pending, or by the commission of
this state in case of settlement without suit, shall be deducted; the
remainder, or so much thereof as is necessary, shall be * * * apportioned as determined
by the court in which such action is pending, or by commission of this state in
case of settlement without suit, between discharging the legal liability of
the employer or insurer * * *; , and * * * distributing to
the injured employee or his dependents. The employee or his dependents
bringing suit against the third party must notify the employer or carrier
within fifteen (15) days of the filing of such suit.
An employer or compensation
insurer who shall have paid compensation benefits under this chapter for the
injury or death of the employee shall have the right to maintain an action at
law against any other party responsible for such injury or death, in the name of
such injured employee or his beneficiaries, or in the name of such employer or
insurer, or any or all of them. If reasonable notice and opportunity to be
represented in such action by counsel shall have been given to the compensation
beneficiary, all claims of such compensation beneficiary shall be determined in
such action, as well as the claim of the employer or insurer. If recovery
shall be had against such other party, by suit or otherwise, the compensation
beneficiary shall be entitled to * * * the amount * * * apportioned
as determined by the court in which such action is pending, or by commission of
this state in case of settlement without suit, between the amount the
employer and insurer shall have paid or are liable for in compensation or other
benefits, after deducting the reasonable costs of collection.
In case of settlement of any action before the trial thereof, such settlement shall be subject to the approval of the court wherein such action is pending, and settlement before an action is brought shall be subject to the approval of the commission. Distribution of the portion belonging to the dependents shall be made among such dependents in the manner provided in this chapter.
In case of liability of the employer or insurer to make payment to the State Treasury under the Second Injury Fund provisions, if the injury or death creates a legal liability against a third party, the employer or insurer shall have a right of action against such third party for reimbursement of any sum so paid into the State Treasury, which right may be enforced in the action heretofore provided or by an independent action.
SECTION 2. This act shall take effect and be in force from and after July 1, 2019.