The pursuit of a workers’ compensation subrogation claim can be broken down into two phases, the development phase and the negotiation phase. During the development phase, the third party investigation is conducted to determine if a third party can be held negligent, and, if so, whether the actions of the third party could meet the negligence or strict liability standard required by the states’ statutes. The negligence or strict liability standard determines whether the carrier, if it pursues a direct action against the third party, or the claimant, if he hires his own attorney to pursue bodily injury claim and the carrier asserts a lien, can collect damages. During the negotiation phase, the carrier is trying to obtain a favorable recovery.
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