State Office of Risk Management v. Carty

When a workers’ compensation beneficiary recovers from a third party for injuries compensable under the Texas Workers’ Compensation Act (Act), the insurance carrier is entitled to be reimbursed from that recovery for benefits paid to the beneficiary and to treat any excess proceeds as an advance against future benefits owed. The U.S. Court of Appeals for the Fifth Circuit has certified the following three questions regarding the carrier’s right to excess proceeds recovered by multiple beneficiaries:

1. In a case involving a recovery by multiple beneficiaries, how should the excess net…