After settlement or judgment of a third-party civil case, the employer is entitled to a credit based on the employee’s net recovery in the civil action. (Labor Code Section 3858, Graham vs. WCAB 210 Cal App 3d 499, 503)
THE EASY PART
The defense attorney in the workers’ compensation case can simply contact the applicant’s attorney or civil attorney and request a breakdown of the third-party civil settlement. The breakdown should include attorney’s fees, costs and net recovery to applicant. Then a Petition for Credit is filed with the Board requesting credit based upon the net recovery of applicant/plaintiff in the civil action.