Sometimes You Need More Than A Handshake: Documenting Waivers Of Workers’ Compensation Subrogation Liens And Credits

A recent Pennsylvania federal court decision reminds us all that when settling third-party cases that involve workers’ compensation subrogation interests, it is vitally important to understand all of the steps which are necessary to fully document and enforce any settlement agreement that involves a waiver or termination of any future workers’ compensation benefits. The decision in Zavodnick, Zavodnick, & Lasky, LLC v. Nat’l Liab. & Fire Ins. Co., 2019 WL 1003157 (E.D. Pa. 2019) reinforces the importance of fully documenting all settlement and recovery agreements and/or waivers is even more important when, as is often the case, the third-party litigation is pending in one state and the workers’ compensation benefits are paid under the laws of another state.