State v. Swanger, Unpublished Decision (8-3-1999)
State v. Swanger, Unpublished Decision (8-3-1999)
Opinion of the Court
This is an appeal from the January 20, 1999 judgment entry of the Common Pleas Court of Marion County granting a motion for summary judgment and dismissing the complaint of the appellant Bureau of Workers' Compensation. The Bureau had sought subrogation in excess of $37,000 for medical bills and lost wages paid to Appellee Virginia R. Swanger as a result of a February, 1995 accident.
Swanger brought an action against Roadway Package Systems and others and settled the matter in April 1998 for $145,000. Swanger incurred attorney fees for filing the lawsuit and for obtaining the settlement in the amount of one-third of her total recovery, or $48,333.33. The Bureau seeks recovery by virtue of the language of R.C.
(B) The administrator of workers' compensation, for the amount of compensation and benefits paid to and on behalf of an employee * * * less the amount of reasonable attorney fees and court costs actually incurred by the employee in the action * * * is subrogated to all of the rights of that employee against a third-party tortfeasor involving that compensable injury or disease.
(D) The right of subrogation which inures to the benefit of the administrator * * * under division (B) of this section is automatic and applies only if the employee is a party to an action involving the third-party tortfeasor.
For its assignments of error, appellant states the following:
The trial court erred in finding that "the plain meaning of the statute in question does not provide Plaintiff with a right of subrogation in this type of situation."
2. The trial court erred in finding "nothing inherently unreasonable in the fee charged," thereby deducting the entire fee from Plaintiff/Appellant's subrogation right and frustrating the purpose of the legislature by barring recovery by the Bureau of Workers' Compensation (Bureau).
Appellant states that the Bureau is a real party in interest and should have been joined in this cause. It states that where the employee has no out of pocket expenses or attorney fees and where the employee has failed to protect the interests of the Bureau, there is no reason to protect employee's settlement, which far exceeds the amount sought by the Bureau. Therefore, the trial court's ruling unjustly enriches the employee and rewards her failure to join the Bureau. The Bureau believes that some reasonable attorney fees should be allowed on a pro rata basis.
In addition, the Bureau states that Swanger should not have structured a settlement that apportioned all the attorney fees against the compensable injuries and not guaranteed payment of the amount due to the Bureau.
The trial court found, in interpreting the legislative intent of R.C.
The Bureau is a "Statutory subrogee" by virtue of the R.C.
The assignments of error are overruled and the judgment of the trial court is affirmed.
Judgment affirmed.
SHAW and WALTERS, JJ., concur.
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