Chantella Blackburn v. K-Va-T Food Stores Inc.

Summary

The Court held that an employer may immediately recover workers’ compensation benefits already paid when a worker later obtains a third-party settlement duplicating those benefits. Under the governing statute, the amount subject to subrogation must first be reduced by the employer’s pro rata share of the worker’s attorney’s fees and legal expenses; the employer need not wait until benefits paid exceed that share. The Court reversed the Court of Appeals in part, reinstated the Board’s disposition, and remanded for correction of the ALJ’s mathematical error.