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Hammond v. Lee

The workers' compensation insurer was not entitled to a subrogation lien against the lost wages which the plaintiff recovered in her third-party suit against the tortfeasor because the plaintiff was not fully compensated for her lost wages.

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At issue in this case is whether Travelers Insurance Companies, which paid workers’ compensation benefits to Schlanda Hammond for job-related injuries, is entitled to enforce a subrogation lien pursuant to OCGA § 34-9-11.1 b against lost wages and medical expenses recovered by Hammond in a suit against a third-party tortfeasor liable for the injuries. For the reasons which follow, we affirm the award of the lien against the amounts recovered in the suit for medical expenses and reverse the award of the lien against the amounts recovered in the suit for lost wages.

Travelers paid workers’ compensation benefits to Hammond for lost wages and medical expenses arising out of a job-related automobile accident which occurred on July 5, 1994, in which a car driven by Hammond for her employer was struck from the rear by a car driven by Lee. Hammond sued Lee as a third-party tortfeasor for injuries she suffered in the accident, and Travelers, as the workers’ compensation insurer for Hammond’s employer, intervened in the suit to assert a subrogation lien pursuant to OCGA § 34-9-11.1 b against any recovery Hammond obtained from Lee.

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