April
23, 2007
Source: WorkInjury.com
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Employee Not Barred From 3rd Party Suit If Employer Settles
The Court of Appeal has issued an opinion certified for publication in McKinnon v. Otis Elevator Co dealing with the issue of subrogation rights between employer and employee.
The Court looked at Labor Code Sections 3850, 3853, 3859 and 3860 as it decided whether an employee was barred from pursuing his claim after the employer had given notice to the employee that it was settling its claim with the third party (and did so).
The Court acknowledged that the statutes were intended to prevent a third-party from defending against multiple lawsuits by both an employer and employee. However, the Court basically held that the notice requirements were not met by the employer to the employee and, thus, the third-party had no right to cut off the employee's rights to sue.
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