Why Worker Comp Litigation Stalls and How To Get it Moving

Litigation can happen in any workers compensation issueNot on every claim, but if there is an aggressive carrier/TPA that denies cases, it will lead to legal hearings over decisions the adjuster made on the claim.




Some cases in litigation are more complex than others, all with varying personalities involved. Some plaintiff firms and adjusters are more aggressive than others. There are always many outside factors involved once a claim moves into litigation. The overall goal of the carrier/TPA is to end the litigation by paying out the least amount of exposure as possible. On the other side, the goal of the plaintiff is to net as much money or benefits as possible. This conflict in interests can lead to months upon months of legal “back and forth.” But what can stall out progress on litigation? [WCx]



  1.  The employee is not realistic 

Litigation leads to a lot of bitterness from the injured workers. They feel resentful about having to get an attorney to assist in getting “what is theirs,” including benefits, be it medical or indemnity in nature. Most of the time when the adjuster asks for a plaintiff demand on what could resolve the case; it is something that is unrealistic. Either the employee wants a big wheelbarrow full of money, or some medical treatment that the carrier does not feel is required to pay. Plaintiff counsel works for the client, the injured worker. Even if the adjuster puts forth a fair settlement offer, and even if the plaintiff counsel feels it is adequate and fair, the injured worker may reject it. Sometimes plaintiff attorneys have a problem controlling the client, stalling out litigation for sure. In the end a judge may have to decide what is or is not fair. Carriers hate to risk going to a judge, but sometimes it is the only way. Most judges will want the two sides to work it out among themselves, but it just cannot happen in every case.



  1.  The employer wants to play hardball 

The employee is not the only party to play with unrealistic expectations. Sometimes the adjuster is faced with an employer/insured who is just not reasonable, no matter how much the issues are broken down. Sometimes personal issues are intertwined within a workers comp case, and if the employer has a bone to pick with the employee, or an example is being made out of that person to scare off other employees from pursuing litigation, it will not help the case end quickly. The judge will have to become involved and this can backfire on the employer. At the end of the day, the adjuster has to get the authority from the employer to settle the case for a certain dollar amount. Even if it were to be a fair amount for all parties involved, the employer can always pull rank and steer the claim off track.



  1.  The attorneys involved are not being proactive 

A busy law firm has many cases, sometimes spread across the state in which there are cases on the docket. Super busy law firms with many attorneys just cannot make it to every legal hearing or mediation, which leads to that mediation being rescheduled. Quickly, 90 days can go by without anything being done on either side. This can be true of both defense and plaintiff law firms. And if the two busy sides are put together, the case is not going to be going anywhere anytime soon. It is the job of the adjuster to maintain the reins on the defense attorney, and force the issue to be addressed a timely manner. There are a lot of defense law firms who are willing to do whatever the employer requests, and if the current firm is having an issue with attendance, then something needs to be done right away. It is not allowable for the adjuster to just pass the case over to the defense attorney and let it go from there. When an employer starts to see a trend with ongoing litigation, sound the horn and become more involved. Lean on the adjuster to find out what is going on. Legal expense is not cheap, and employers should be paying for legal services that are acting in their best interest.



  1.  The adjuster is not open to settling cases 

Employers dealing with adjusters who are not settling cases have a serious issue. Sometimes cases are compensable and can cost a lot of money. The adjuster may not be willing or happy to accept this, but it is part of the job. If settling a case is an option to end exposure, and the adjuster is not being realistic and following wishes, then bring that up to the adjuster’s supervisor. The good news is, most cases in litigation involve the supervisor anyway. But everyone is busy, and sometimes the supervisor can overlook what is going on. It is hard to stay on top of every single case, so if there are some concerns on where the case is heading or how it is getting there, then voice an opinion. The adjuster and carrier work for you, and they are there to assist with these legal issues and to act in the best interest of an employer. If the adjuster is refusing to have an open mind and to accept the fact that all cases cannot be tried, then maybe a new adjuster is needed. Because in the end, it is the employer who will be damaged by a bad legal outcome. The carrier will move on, the attorneys will move on, and the employer needs to be comfortable with the way the litigated cases are being handled.[WCx]




Litigation is unavoidable. It will happen, sometimes more often with certain employers than others. But that does not mean that the litigation process has to be painful. Litigated cases need to be handled correctly, since one bad move can result in a lot of money being paid out unnecessarily. Keep the litigation moving, keep involved, and be prepared to handle litigation when it happens.





Author Rebecca Shafer, JD, President of Amaxx Risk Solutions, Inc. is a national expert in the field of workers compensation. She is a writer, speaker, and publisher. Her expertise is working with employers to reduce workers compensation costs, and her clients include airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality, and manufacturing. She is the author of the #1 selling book on cost containment, Workers Compensation Management Program: Reduce Costs 20% to 50%Contact: RShafer@ReduceYourWorkersComp.com.


Editor Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher.  www.reduceyourworkerscomp.com.  Contact:  mstack@reduceyourworkerscomp.com.



MODIFIED DUTY CALCULATOR:  www.LowerWC.com/transitional-duty-cost-calculator.php


Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.


©2012 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact us at: Info@ReduceYourWorkersComp.com.


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