Sherrod v. Municipality of Anchorage, Water/Sewer Refuse Utility

OPINION

MATTHEWS, Chief Justice.

Sherrod suffered an on-the-job injury in 1978 while employed by the Municipality of Anchorage. He has had recurrent back problems since then, for which he has received much medical and hospital care. Some of his medical and hospital bills have been paid by the Municipality under the Workers’ Compensation Act and some of them have been paid by Aetna, Sherrod’s health insurer.

In 1983 Aetna required Sherrod to sign an agreement under which he was to repay Aetna from any recovery he received from a third party. In 1986 Aetna advised Sher-rod that it expected…