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S1573......................................................by STATE AFFAIRS
WORKER'S COMPENSATION - Amends existing law to further clarify attorney fee
obligations when a recovery is made against a third party in a worker's
compensation claim.
03/20 Senate intro - 1st rdg - to printing
03/21 Rpt prt - to Com/HuRes
Rpt out - rec d/p - to 2nd rdg
03/22 2nd rdg - to 3rd rdg
03/23 3rd rdg - PASSED - 33-1-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Stennett, Thorne, Wheeler, Williams
NAYS--Whitworth
Absent and excused--King-Barrutia
Floor Sponsor - Davis
Title apvd - to House
03/24 House intro - 1st rdg - to St Aff
03/28 Rpt out - to Comm/HuRes
03/30 Rpt out - rec d/p - to 2nd rdg
03/31 2nd rdg - to 3rd rdg
04/03 3rd rdg - PASSED - 65-3-2
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Black, Boe,
Bruneel, Callister, Campbell, Cheirrett, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hadley,
Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones,
Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Linford,
Loertscher(Loertscher), Mader, Marley, McKague, Meyer, Montgomery,
Moss, Moyle, Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo,
Robison, Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson,
Stone, Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- Bieter, Chase, Stoicheff
Absent and excused -- Clark, Mortensen
Floor Sponsor - Lake
Title apvd - to Senate
04/04 To enrol - rpt enrol - Pres signed
04/05 Sp signed
04/06 To Governor
04/14 Governor signed
Session Law Chapter 372
Effective: 07/01/00
S1573
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1573
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO WORKER'S COMPENSATION; AMENDING SECTION 72-223, IDAHO CODE, AS
3 AMENDED BY HOUSE BILL NO. 549, AS AMENDED, ENACTED BY THE SECOND REGULAR
4 SESSION OF THE FIFTY-FIFTH IDAHO LEGISLATURE, TO FURTHER CLARIFY ATTORNEY
5 FEE OBLIGATIONS WHEN A RECOVERY IS MADE AGAINST A THIRD PARTY.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 72-223, Idaho Code, as amended by House Bill No.
8 549, As Amended, enacted by the Second Regular Session of the Fifty-fifth
9 Idaho Legislature, be, and the same is hereby amended to read as follows:
10 72-223. THIRD PARTY LIABILITY. (1) The right to compensation under this
11 law shall not be affected by the fact that the injury, occupational disease or
12 death is caused under circumstances creating in some person other than the
13 employer a legal liability to pay damages therefor, such person so liable
14 being referred to as the third party. Such third party shall not include those
15 employers described in section 72-216, Idaho Code, having under them contrac-
16 tors or subcontractors who have in fact complied with the provisions of sec-
17 tion 72-301, Idaho Code; nor include the owner or lessee of premises, or other
18 person who is virtually the proprietor or operator of the business there car-
19 ried on, but who, by reason of there being an independent contractor or for
20 any other reason, is not the direct employer of the workmen there employed.
21 (2) Action may be instituted against such third party by the employee, or
22 in event compensation has been claimed and awarded, by the employee and
23 employer jointly, in the employee's name, or, if the employee refuses to par-
24 ticipate in such action, by the employer in the employee's name.
25 (3) If compensation has been claimed and awarded, the employer having
26 paid such compensation or having become liable therefor, shall be subrogated
27 to the rights of the employee, to recover against such third party to the
28 extent of the employer's compensation liability.
29 (4) Unless otherwise agreed, upon any recovery by the employee against
30 the third party, the employer shall pay or have deducted from its subrogated
31 portion thereof, a proportionate share of the costs and attorney's fees incur-
32 red by the employee in obtaining such recovery unless one (1) or more of the
33 following circumstances exist:
34 (a) If prior to the date of a written retention agreement between the
35 employee and an attorney, the employer has reached an agreement with the
36 third party, in writing, acknowledging agreeing to pay in full the third
37 party's obligation to pay the employer's subrogated interest;
38 (b) If the employee alleges or asserts a position in the third party
39 claim adverse to the employer, then the commission shall have jurisdiction
40 to determine a reasonable fee, if any, for services rendered to the
41 employer;
42 (c) If there is a joint effort between the employee and employer to pur-
43 sue a recovery from the third party, then the commission shall have juris-
2
1 diction to determine a reasonable fee, if any, and apportion the costs and
2 attorney's fees between the employee and employer.
3 (5) If the amount recovered from the third party exceeds the amount of
4 the subrogated portion payable to the employer for past compensation benefits
5 paid, then to the extent the employer has a future subrogated interest in that
6 portion of the third party recovery paid to the employee, the employer shall
7 receive a credit against its future liability for compensation benefits. Such
8 credit shall apply as future compensation benefits become payable, and the
9 employer shall reimburse the employee for the proportionate share of
10 attorney's fees and costs paid by the employee in obtaining that portion of
11 the third party recovery corresponding to the credit claimed. The employer
12 shall not be required to pay such attorney's fees and costs related to the
13 future credit prior to the time the credit is claimed. However, the employer
14 and employee may agree to different terms if approved by the industrial com-
15 mission.
16 (6) If death results from the injury or occupational disease and if the
17 employee leaves no dependents entitled to benefits under this law, the surety
18 shall have a right of action against the third party for recovery of income
19 benefits, reasonable expenses of medical and related services and burial
20 expense actually paid by the surety and for recovery of amounts paid into the
21 industrial special indemnity account pursuant to section 72-420, Idaho Code,
22 and such right of action shall be in addition to any cause of action of the
23 heirs or personal representatives of the deceased.
24 (7) All rights and restrictions herein granted to the employer have pre-
25 viously been intended to be, and are hereby expressly granted to the indus-
26 trial special indemnity account.
STATEMENT OF PURPOSE
RS 10308
This legislation is a trailer bill to HB549, as amended,
intended to further clarify attorney fee obligations when
a recovery is made against a third party.
FISCAL NOTE
None.
CONTACT: Senator Bart Davis
332-1343
Senator Gordon Crow
332-1330
STATEMENT OF PURPOSE/ FISCAL NOTE S1573