How i can avoid a lien on my personal injury settlement

Asked over 1 year ago - Carol Stream, IL

I was in a car accident 6 months ago(not at fault) at work and workman's comp paid my hospital bills .We are about to settle this case now but they want to put a lien on my personal injury case.Can i avoid this somehow or the responsible party for the accident have to pay them thank you

Attorney answers (7)

  1. Stephen Laurence Hoffman

    Pro

    Contributor Level 20

    6

    Lawyers agree

    Answered . Workers' Compensation in Illinois has a lien on repayment of the monies it paid out for TTD, medical, and permanency PPD, IF you recover from a third party. So, your choices are to either not bother with the PI case, arrange to settle the WC case and "waive" the lien, or determine how to reduce the WC lien within the bounds of the law.

    It is really too late to do most of these so your best and probably only option is to have a lawyer help you negotiate the reduction of the WC lien and make sure whatever settlement you receive for the PI case is enough to cover this figure. Very confusing stuff. I'd be happy to work through it with you.

    Stephen L. Hoffman
    Law Office of Stephen L. Hoffman LLC
    Chicago, IL
    773-944-9737
    Email: stephen@hofflawyer.com
    Website: www.hofflawyer.com
    Blog: www.hofflawyer.com/blog/
    .

    This answer posted on Avvo is for informational and educational purposes only. There is no attorney-client... more
  2. Michael R Crosner

    Contributor Level 20

    6

    Lawyers agree

    Answered . You need to discuss this with your attorney or if you are not represented by counsel you should immediately contact an IL personal injury and/or workers compensation attorney. The general answer to your question is that the workers compensation carrier has a right by statute to seek recovery of their paid benefits against a third party defendant(s). These liens can often be reduced by the third party attorney. However, this is a complex area of the law & requires the assistance of legal professional to maximize your recovery. I am a California attorney not licensed in IL & not knowledgeable regarding their laws. Speak to local counsel before making any settlement decision.

    This is not intended to be legal advise or as legal representation. I am a California personal injury attorney .... more
  3. Steven Adam Sigmond

    Contributor Level 13

    4

    Lawyers agree

    Answered . The only way to avoid the lien is to negotiate a waiver of the lien as a part of your workers comp settlement. The lien is statutory, and defense lawyers always include language in the settlement contract that reaffirms the employers lien rights against a potential personal injury case. They will rarely waive this right, but it can be achieved sometimes through negotiation of an overall deal. If you have already signed a contract containing this language, the lien cannot be avoided.

    In dealing with a workers comp lien, or any lien, your personal injury lawyer may be able to achieve a reduction of the lien through negotiation.

    I believe that an injury victim who has the chance to file both a workers comp case and a personal injury case from the same event is better served by retaining one attorney skilled in both areas to handle and coordinate both cases.

    Steven A. Sigmond
    Law Office of Steven A. Sigmond
    345 N. Canal #1208
    Chicago, IL 60606

    (312) 756-1186

    Steve@Siglaw.com

    Steven A. Sigmond offers confidential fee consultations to anyone who has been injured in an accident or hurt at... more
  4. Christian K. Lassen II

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . Make sure you lawyer negotiates this lien down before you sign the release.

  5. Dexter John Evans

    Contributor Level 5

    3

    Lawyers agree

    Answered . The workers' compensation carrier has a legal right to recover 75% of the amount paid out for medical bills, TTD, and any permanency out of your personal injury settlement. The carrier may, but is not required to, reduce it further depending on the circumstances. If the workers' compensation lien is more than the personal injury settlement or judgment, the carrier is entitled to 75% of the personal injury settlement or judgment. Consult an attorney.

  6. Robert Bruce Kopelson

    Contributor Level 20

    3

    Lawyers agree

    Answered . Talk to your work comp atty and orinjury lawyer. if you dont have atty representing you, you should immediately consult one before settling the comp case. I dont know Il law, but generally, the comp carrier can sue the 3d party itself for reimbursement of benefits paid to you, or can assert a lien against your case against the deft. These can be tricky overlapping cases, and you should have counsel helping you.

  7. George Costas Andriotis

    Contributor Level 20

    3

    Lawyers agree

    Answered . You can't avoid paying the Lien but your attorney should negotiate it down quite a bit for you.

    Call for a free consultation at 727-937-1400 or visit us on the Web at www.serviceandjustice.com.

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