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GA. STAR PLUMBING v. BOWEN2/26/1997
After Jeffrey Stilley was paid workers' compensation benefits for injuries he received as an employee in an on-the-job automobile accident, Stilley's employer, Georgia Star Plumbing, Inc. (Georgia Star), and its workers' compensation insurer, Federated Mutual Insurance Company (FMIC), brought an action against Krista and Vicky Bowen, the alleged third party tortfeasors responsible for the accident, to enforce subrogation rights pursuant to OCGA § 34-9-11.1. Georgia Star and FMIC appeal from the trial court's ruling on cross-motions for summary judgment that they had no right to bring the subrogation action against the Bowens.
While working for Georgia Star, Stilley was injured when the vehicle he was driving was hit by an automobile driven by Krista Bowen. About a month after the accident, Stilley filed a claim for workers' compensation benefits as a result of the injuries he received in the accident. A little less than a year after the accident, Stilley also sued Krista Bowen and her mother, Vicky Bowen (under the family purpose doctrine) claiming they were liable as third party tortfeasors for the injuries he received in the accident. Georgia Star and FMIC did not initially pay workers' compensation benefits because they controverted Stilley's claim. Workers' compensation
benefits were eventually paid to Stilley after the award of the administrative law judge in Stilley's favor was affirmed by the appellate division of the workers' compensation board and the superior court. While the controverted workers' compensation claim was being litigated, Stilley settled his tort suit against the Bowens for $50,000 and released the Bowens from further liability. The settlement and release occurred prior to Stilley being paid any workers' compensation benefits by Georgia Star and FMIC. Prior to the settlement of the suit, Georgia Star and FMIC notified the Bowens' insurer on the tort claim and Stilley's attorney on the tort claim that Stilley had filed a claim for workers' compensation benefits as a result of the accident and that, as the employer and insurer in the workers' compensation claim, they had a right to a subrogation lien under OCGA § 34-9-11.1 against any tort recovery in the amount of any disability benefits and medical expenses paid to Stilley under the Workers' Compensation Act.
After paying workers' compensation benefits to Stilley, Georgia Star and FMIC brought the present action against Krista and Vicky Bowen pursuant to OCGA § 34-9-11.1 claiming a subrogation lien against Stilley's tort recovery in the amount of workers' compensation payments made to Stilley and asserting a cause of action to be subrogated in that amount to Stilley's claim against the Bowens. The Bowens denied any liability and filed a third party complaint against Stilley. All of the parties filed cross-motions for summary judgment on the issue of whether Georgia Star and FMIC had a right to bring the subrogation action against the Bowens.
OCGA §§ 34-9-11 and 34-9-11.1 (a) make clear that, despite the exclusive remedy provisions of the workers' compensation act, an injured employee who receives workers' compensation payments for an injury retains the right to bring an action against certain third party tortfeasors legally liable for the on-the-job injury. Subsection (b) of § 34-9-11.1 provides that, after an employer has paid workers' compensation payments to an injured employee, the employer or its insurer is granted a subrogation lien against the employee's recovery from a third party tortfeasor liable to the employee for the injury, that the lien is limited to the amount of benefits and medical expenses paid to the injured employee, that the lien is recoverable only if the employee has been f
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