Louisiana Personal Injury Lawyer Blog
In a recent decision by the United States Court of Appeals for the Fifth Circuit, McGill C. Parfait v. Director, Office of Workers’ Compensation Programs, et al., a worker’s claim for disability benefits under the Longshore and Harbor Workers’ Compensation Act (LHWCA) was dismissed due to his failure to notify his employer of a third-party settlement. This case serves as a critical reminder of the importance of adhering to the notice requirements under the LHWCA to protect one’s right to compensation.
McGill C. Parfait, an employee of Performance Energy Services, L.L.C., sustained back and chest injuries in a work-related accident. He filed a claim for disability benefits under the LHWCA, which was partially granted for his chest injury but denied for his back injury. Parfait appealed this decision.
Simultaneously, Parfait pursued a third-party tort action against Apache Corporation and Wood Group PSN, Inc., related to the same accident. He settled with Apache for $325,000 and obtained a judgment against Wood Group for $41,542.17.
The Crux of the Matter: Notice Requirement
The LHWCA allows injured workers to seek compensation benefits while also pursuing legal action against third parties responsible for their injuries. However, to prevent double recovery, the Act mandates that the employer be notified of any settlements or judgments received from third parties.
In this case, Parfait failed to notify his employer of either the settlement or the judgment despite his counsel communicating with the employer’s counsel during a mediation session.
The Court of Appeal dismissed Parfait’s appeal, emphasizing the clear language of the LHWCA, which requires notice of any settlement or judgment to the employer. It stressed the importance of this requirement to protect the employer’s right to offset any third-party recovery against its liability for compensation.
Key Takeaways:
- Strict Adherence to Notice Requirements: The LHWCA’s notice requirements are strictly enforced. Failure to notify the employer of any third-party settlements or judgments can terminate all compensation and medical benefits rights.
- Protecting Employer’s Rights: The notice requirement safeguards the employer’s interests by allowing them to offset any third-party recovery against their compensation obligations and prevent fraudulent double recovery by the employee.
- Clarity and Timeliness: Notice to the employer should be clear and unambiguous and provided in a timely manner. Simply informing the employer about ongoing legal proceedings is not sufficient.
This case is a cautionary tale for injured workers pursuing third-party claims while seeking LHWCA benefits. Strict compliance with the notice requirements is crucial to preserve one’s right to compensation. If you are involved in a similar situation, it’s imperative to consult with an experienced attorney to ensure you fulfill all legal obligations and protect your rights.
Written by Berniard Law Firm
Other Berniard Law Firm Articles on Longshore and Harbor Workers’ Compensation Act (LHWCA) Issues: “Other Insurance” Provisions and the Delays Associated with Conflicting Policies and When Is a Company Required to Pay for Certain Medical Treatments for Injured Longshore Employees?