The Delaware Supreme Court ruled the state’s Workers’ Compensation Act permits employers and insurers to assert subrogation liens against benefits paid to injured workers through uninsured motorist policies for injuries previously compensated through comp.
In Horizon Services Inc. and Eastern Alliance Insurance Co. v. John Henry and The Cincinnati Insurance Co., decided Friday, the high court reversed a trial judge’s dismissal of a claim by Horizon that sought permission to assert a lien against any recovery injured employee John Henry obtained from other sources.
Mr. Henry, who was injured in a vehicle accident caused by a third party, received more than $584,000 in comp benefits and then settled a claim with the third party’s insurer. He reimbursed a portion of the recovery to Horizon and Eastern Alliance.
Mr. Henry later filed a separate claim for uninsured motorist benefits against Cincinnati Insurance Co., Horizon’s vehicle insurer, but Cincinnati argued the claim was barred by comp exclusive remedy.
Mr. Henry asserted exclusive remedy permits employees to recover both comp and uninsured motorist benefits.
The trial court agreed with Cincinnati and dismissed the claim.
The Delaware Supreme Court said since comp exclusive remedy doesn’t bar a worker from seeking uninsured motorist benefits it also doesn’t prohibit employers and insurers from asserting liens against third-party benefits.