An employer’s insurer may collect from the supersedeas fund for “unreimbursed pre-settlement” and “grace period” payments made to a workers’ compensation claimant who settles with a third-party tortfeasor following a work-related injury, the state Supreme Court has ruled.
Leading the 5-2 court was Justice Max Baer, who analyzed the payments as “compensation,” subject to subrogation and employer reimbursement from the supersedeas fund, which applies to situations in which an employer’s insurance company successfully litigates a modification or suspension of benefits.
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