In a third-party case with the described figures, what is the net recovery to the injured worker after attorney fees, costs, and WC lien?

In a third-party case with the described figures, what is the net recovery to the injured worker after attorney fees, costs, and WC lien?

• A. $10,000
• B. $56,000
• C. $20,000
• D. $60,000

Answer: (C)

The main idea is that the amount the injured worker finally receives from a third-party recovery is what’s left after paying the WC lien, attorney fees, and costs from that third-party settlement. Using the described figures: start with the third-party recovery of 60,000. Pay back the workers’ compensation lien of 25,000 to reimburse benefits already paid. Then subtract the attorney fees, which are typically a percentage of the third-party recovery (here 15% of 60,000, i.e., 9,000). Finally subtract the litigation costs, 6,000. So the calculation is: 60,000 - 25,000 - 9,000 - 6,000 = 20,000. Thus the net recovery to the injured worker, after attorney fees, costs, and the WC lien, is 20,000.

The main idea is that the amount the injured worker finally receives from a third-party recovery is what’s left after paying the WC lien, attorney fees, and costs from that third-party settlement.

Using the described figures: start with the third-party recovery of 60,000. Pay back the workers’ compensation lien of 25,000 to reimburse benefits already paid. Then subtract the attorney fees, which are typically a percentage of the third-party recovery (here 15% of 60,000, i.e., 9,000). Finally subtract the litigation costs, 6,000. So the calculation is:

60,000 - 25,000 - 9,000 - 6,000 = 20,000.

Thus the net recovery to the injured worker, after attorney fees, costs, and the WC lien, is 20,000.