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Trout v. Edwards Trucking Co.

9/20/2000

NOT DESIGNATED FOR PUBLICATION


AFFIRMED


This is a workers' compensation case involving a statutory lien on funds. Appellant, John Trout, was seriously injured while delivering a load of sand to Robert's Soil Company for his employer, appellee Edwards Trucking Company, Inc. Appellant received a $10,000 check from Kemper Insurance Company, the third-party insurance carrier for Robert's Soil Company, pursuant to a specific provision of its insurance policy whereby $10,000 is provided to assist with the medical expenses of invitees who are injured on the premises. Appellee Credit General Insurance Company is the employer's insurance carrier. The Commission affirmed and adopted the ALJ's finding that the appellees were entitled to a lien on the proceeds of the $10,000 check tendered to appellant. We affirm.


This case was presented to the ALJ on the following stipulated facts:


1. On March 16, 1998, John Trout, an employee of Certified Systems, Inc./Edwards Trucking Company, Inc., suffered serious injuries while delivering a load of sand to Robert's Soil Company, located in Rogers, Arkansas. Edwards Trucking Company's Workers' Compensation Carrier is Credit General Insurance Company, which is administered by Lindsey Morden Claims Management, Inc.


2. John Trout has filed suit, which is presently pending, against Robert's Soil Company in the circuit court of Washington County, Arkansas alleging third party negligence. Robert's Soil Company's insurance carrier, Kemper Insurance Company, is defending that suit.


3. Edwards Trucking Company, Inc. and its insurance carrier, Credit General Insurance Company, have been required to pay John Trout workers' compensation benefits pursuant to Arkansas Workers' Compensation Act.


4. Edwards Trucking Company, Inc. and Credit General Insurance Company have intervened in the suit brought by John Trout against Robert's Soil Company and Kemper Insurance Company. Under Ark. Code Ann. § 11-9-410(3)(A)(B) of Arkansas Workers' Compensation Act, employers/insurance carriers are entitled to a lien on two- thirds of the net proceeds of recovery by suit or otherwise.


5. Trout concedes that Edwards Trucking Company, Inc. and Credit General Insurance Company have an interest in the subject matter involved in the suit brought by Trout against Robert's Soil Company, and, therefore, have a right to intervene in the suit.


6. Kemper Insurance Company, the third party insurance carrier for Robert's Soil Company where the accident occurred, issued John Trout a $10,000 check pursuant to a specific provision of the third party, Robert's Soil Company's insurance policy, whereby they provide $10,000 to assist with the medical expenses of those invitees who are injured on their premises.


7. As to the issue in dispute, John Trout contends that he is the only party entitled to these funds issued by Kemper Insurance Company; that the issuance of this check was not the result of an action maintained in court, as the language of Ark. Code Ann. § 11-9-410(a)(1)(A) requires, but was the fulfillment of a contractual obligation on the part of Kemper Insurance Company; that, Lindsey Morden Claims Management, Inc. does not have any interest in the check that Kemper Insurance Company issued Trout.


8. Respondents claim an interest in the $10,000 that Trout received. They claim they are entitled to a lien on two-thirds of the net proceeds of any recovery from defendant, Robert's Soil Company or Kemper Insurance Company by judgment, settlement or otherwise pursuant to Ark. Code Ann. § 11-9-410. (Emphasis added.)


For his sole point of appeal, appellant contends tha

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