A third-party action pursues tort recovery against a non-employer whose negligence contributed to a workplace injury, commonly an equipment manufacturer, general contractor, property owner, or motorist.
The compensation carrier holds a lien on the recovery for benefits it paid.
Alternative Names:
Third-Party Claim, Third-Party Liability Action
Why it Matters?
These actions are where serious workplace injuries produce meaningful recovery, since tort damages include pain and suffering that comp excludes. For defense counsel representing the third party, the compensation file is essential discovery: it contains the claimant's recorded statements, medical treatment history, and disability findings, often stated differently than in the tort case. Lien resolution is also a settlement prerequisite that shapes net recovery and negotiation.
Frequently Confused with
Related terms
Frequently asked questions
Why pursue a third-party action?
Is the compensation file discoverable in the tort case?
