Third-Party

According to the U.S. Bureau of Labor Statistics (BLS), about three million work-related injuries occur every year. Where injured workers pursue compensation, 90% to 95% result in workers’ compensation claims.

The other 5% to 10% involve personal injury lawsuits against third parties. It is possible to file both a workers’ compensation claim and a third-party lawsuit over the same injury.

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When to File a Workers’ Compensation Claim and When to File a Third-Party Personal Injury Claim

Imagine, for example, that you suffer a slip and fall accident while working at a construction site. You incur thousands of dollars in medical expenses and three weeks of lost wages. Typically, you would file a workers’ compensation claim against your employer. Since your employer almost certainly carries workers’ compensation insurance, workers’ compensation would probably be the party paying your claim.

However, suppose now that your injury occurred due to a dangerous condition at the construction site due to the landowner’s negligence. Under these circumstances, you might consider filing a third-party personal injury lawsuit against the landowner.

Workers’ Compensation Claims: Advantages

Workers compensation claims are no-fault claims. This means that when you file a workers’ compensation claim against your employer, you don’t have to prove that your employer was at fault to win. You might even win and receive 100% of your medical expenses if the accident was your own fault.

Workers’ Compensation: Disadvantages

The main disadvantage of the workers’ compensation system is that, in most cases, you cannot sue your employer for personal injury, even if your injuries were clearly your employer’s fault. Instead, you must deal with the workers’ compensation administrative system, which offers meager compensation compared to a successful personal injury lawsuit. In Colorado, besides medical bills, you receive only two-thirds of your pre-injury wages up to a maximum of $1,338 per week for injuries as of July 2024.

There is a way out of the workers’ compensation trap. You can file a personal injury lawsuit against a third party whose negligence injured you, even if the injury was work-related. That “third party” cannot be your employer under almost all circumstances. A third party is anyone other than you or your employer. Here is a list of the most common third-party defendants in work-related injury lawsuits:

Equipment manufacturers: A defectively manufactured work tool or equipment can generate a product liability lawsuit if its defect is unreasonably dangerous and the defect caused your injury. Imagine factory machinery, for instance. In most cases, you can sue not only the manufacturer but also the distributor.
A property owner (other than your employer): Imagine you are a construction worker who suffers injury from toxic waste stored on a construction site where you work. If the owner of the property was not your employer, you might be able to sue the property owner.
Contractors/subcontractors: If your employer is a subcontractor and you suffered a slip and fall injury due to the general contractor’s negligence, you could possibly sue the general contractor for your full personal injury damages.
Motor vehicle drivers: If you work as a delivery driver and you suffered a truck accident injury caused by the truck driver, you might win a personal injury lawsuit against the negligent driver.

Anyone other than your employer whose carelessness causes you a work-related injury can bear liability.

Third-Party Lawsuits: Advantages

The primary advantage of filing a third-party lawsuit is the amount of damages you can claim. Just like workers’ compensation, you can demand 100% of your medical expenses. You can also demand 100% of your lost wages, 100% of your out-of-pocket expenses, and 100% of your non-economic damages, such as pain and suffering. This could add up to several times the amount you would probably receive from a workers’s compensation claim,

Third-Party Lawsuits: Disadvantages

The primary disadvantage of a third-party lawsuit is that, in most cases, you will have to prove that the defendant was at fault to win. This isn’t always the case–strict liability (liability without proof of fault) applies to, for example, product liability claims.

The second disadvantage of a third-party lawsuit is that you could lose some or all of your compensation under Colorado’s modified comparative fault rule. If your percentage of fault is under 50%, you will lose precisely that amount of your compensation. If your percentage of fut was 50% or more, you will lose 100% of your compensation. For example, if you are 40% at fault, you will lose 40% of your total compensation. If you are 60% at fault, you cannot recover at all.

The third disadvantage is the statute of limitations deadline. Generally, you have only two years after your injury to file a personal injury lawsuit, although exceptions exist.

The Assistance of a Denver Personal Injury Lawyer is Crucial If Your Third-Party Claim Carries Substantial Value

You might be able to handle a small workers’ compensation claim on your own. You might even be able to handle a small third-party workplace injury compensation on your own. What you don’t want to do, however, is try to sue a third party for a serious personal injury such as a traumatic brain injury (TBI) or a spinal cord injury.

To receive fair compensation for a major injury or the wrongful death of a loved one, you’re definitely going to need the help of a Denver personal injury lawyer.Contact Zaner Law Personal Injury Lawyers at (720) 613-9706 today for a free consultation and to learn more.

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