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Third Party Action over Liability refers to the legal right of a party (often an employer) to seek compensation from a third party who may be partially or entirely responsible for an accident or injury suffered by their employee. This can occur when an employee is injured on the job due to the negligence or wrongdoing of someone other than their employer. The employer can then file a lawsuit against the third party to recover damages on behalf of their employee.

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15y ago

In the world of workers' compensation laws, when an injured worker is paid medical and lost wage benefits by his/her employer [or] insurer, and the injury is caused by negligence or statutory liability of some person(s) OTHER THAN THE EMPLOYER who is paying benefits, the injured worker has a right of "action over" against the "third party." The injured workers is barred from suing his/her employer by exclusive remedy clauses in States' laws, but he can sue a "third party." Employer A Worker B Jerk C B and C are in an auto accident. B is paid workers compensation benefits by A (or its insurer). In addition, B has a right to sue C. If B gets money from C, workers' compensation laws require a pro-rated reimbursement by B to A, to the extent B has received workers' compensation benefits, a principal called a "lien." If B is paid $5,000 in workers' compensation benefits and brings an "action over" against C, and recovers $15,000, B will have to reimburse A a pro-rated amount of the $5,000 he received in workers' compensation benefits.

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