Injured at work? Wondering what to do next?
Two common avenues exist for obtaining compensation after a workplace injury.
One option — and the most commonly used — is filing for workers’ compensation, which covers medical bills and lost wages. But there may be more to your workers’ compensation case than you realize, and that’s where the second avenue comes in. The second option, which may be available under certain circumstances, is to pursue a third-party lawsuit in addition to your workers’ compensation benefits.
Understanding both options could significantly impact your recovery — both physically and financially.
What Is a Third-Party Liability Lawsuit?
Third-party liability lawsuits are legal claims related to workplace injuries but separate from workers’ compensation, which only involves an employer. As the name suggests, these lawsuits are filed against a third party (an individual or entity) other than the worker’s employer, who bears at least some fault for your work-related injury. These cases arise when a worker is harmed due to the negligence or intentional wrongdoing of a third party whose unsafe actions contributed to the incident.
In some instances, multiple parties may be held accountable, and these lawsuits seek to ensure that those responsible provide appropriate compensation. By proving another party’s negligence, a third-party lawsuit can allow an injured worker to recover additional damages beyond what workers’ compensation provides.
Who Is Considered a Third Party?
- Other Contractors or Companies on the Job Site: If a worker is injured due to the negligence of another contractor or company sharing the same worksite, they can pursue legal action against that entity.
- Manufacturers of Defective Equipment: When faulty or dangerous equipment causes injury or illness during employment, workers can take legal action against the manufacturer or distributor.
- Other Drivers: If a worker is driving for work-related purposes and is injured due to another driver’s negligence, they may file a lawsuit against that driver. If the at-fault driver is uninsured, the worker may be able to collect compensation through their own uninsured motorist coverage.
- Property Owners: If unsafe conditions on another person’s property cause injury, the worker may file a third-party claim against the property owner under premises liability, especially if the owner failed to maintain a reasonably safe environment.
- Vendors or Service Companies: If a worker is injured due to negligence by a vendor or service company, they can hold that company accountable.
Workers’ Compensation vs. Third-Party Lawsuits
Workers’ compensation and third-party lawsuits are separate legal processes, meaning an injured worker can pursue both simultaneously. This allows workers to receive workers’ compensation benefits while also seeking additional damages from a negligent third party.
However, because these are distinct claims, there are key differences in how they are filed, the compensation available, and the legal requirements involved.
| Factor | Worker’ Comp | Third-Party Lawsuit |
|---|---|---|
| Fault Requirement | No-fault system; benefits are provided regardless of whether the employer is at fault | Fault-based system; the injured worker must prove that the third party’s negligence caused the injury |
| Types of Compensation | Covers medical expenses, a portion of lost wages, and disability benefits | Can include full lost wages, pain and suffering, emotional distress, and other non-economic damages |
| Legal Action Against Employer | Employers are generally shielded from lawsuits by workers’ comp laws | The worker sues a third party, not their employer |
| Process Timeline | Typically faster with a streamlined process | Often longer due to litigation requirements |
| Deadlines | Specific reporting deadlines set by state workers’ comp laws | Subject to statutes of limitation (four years) |
| Where to File | State workers’ compensation board or commission | Civil court system |
| Procedural Requirements | Administrative process with specific forms | Formal legal proceedings following civil court rules |
| Payment Structure | Often periodic payments | Typically lump-sum settlements |
| Legal Representation | Optional but recommended | Usually necessary |
The Challenges with Third-Party Liability Lawsuits
Third-party claims offer injured workers the opportunity to seek additional compensation beyond what workers’ compensation provides. While this can be beneficial, pursuing a third-party lawsuit comes with its own set of challenges. These difficulties primarily stem from third-party liability claims involving formal legal proceedings that can be complex, mentally taxing, and time-consuming for the injured worker.
Below, we highlight three of the most significant challenges workers may face:
Burden of Proof
Unlike workers’ compensation claims, which do not require proving fault, third-party lawsuits demand that the injured worker establish liability (negligence or wrongdoing) by the third party. Specifically, the injured worker must demonstrate that the third party owed them a duty of care, breached that duty, and directly caused their injuries. This often necessitates intensive investigation, including expert interviews, a thorough review of medical records, and an examination of all available photographic and video material to build a compelling case.
Comparative Negligence
Third-party defendants frequently attempt to reduce their liability by claiming the injured worker shares responsibility for the accident. Under comparative negligence principles, if a jury determines you were partially at fault — for instance, 20% responsible — your damage award would be reduced proportionally, meaning you’d receive only 80% of the total damages. This defense strategy can significantly impact your compensation, even when your case succeeds.
Subrogation
Workers who receive both workers’ compensation and a third-party settlement may face a process called subrogation, where the workers’ compensation insurer seeks reimbursement for benefits already paid. For example, if a worker receives workers’ compensation benefits to cover medical expenses and lost wages after an injury caused by faulty equipment, but later wins a third-party lawsuit against the equipment manufacturer, the workers’ compensation insurer may claim a portion of the settlement to recover the costs they initially covered. This can reduce the worker’s net recovery from the lawsuit.
Get the Support You Need for Your Third-Party Liability Claims
Filing third-party claims offers valuable opportunities for additional compensation, but the legal complexity requires professional guidance. An experienced attorney will investigate your work-related injury, identify all liable parties, collect compelling evidence, and ensure all legal deadlines are met. Your lawyer will also negotiate with the at-fault party’s insurance company and, if necessary, take your case to trial.
At Bluestein Attorneys, we combine workers’ compensation and personal injury expertise under one roof, giving us a unique advantage in maximizing your compensation for damages in both third-party and workers’ compensation cases. Call us at 803-779-7599 or reach out online for a free consultation. Let us fight for the full compensation you deserve while you focus on recovery.
