Pembroke and Contribution - Limitations on Actions

Saturday, January 8, 2005 | 0

Florida Statute 440.42(4) provides for contribution from another employer when that employer is liable in part for workers' compensation benefits to an injured worker. Florida's 1st District Court of Appeal issued an opinion on January 5, 2005 which answers several questions which a subsequent employer often has about its right to contribution from a prior employer.

In City of Pembroke Pines v. Brooks, 1/5/05 (1st DCA) the Court clarified when a right to contribution arises and what statute of limitations applies to claims for contribution:

1. A contribution claim arises on the earlier of the date a judgment is entered against the subsequent employer or the date the subsequent employer first pays benefits.

2. The right to contribution is contingent until the date the subsequent employer pays more than its pro rata share of benefits.

3. IMPORTANT: The statute of limitations for contribution is 4 years.

The right to contribution may substantially reduce an employer's liability for workers' compensation benefits when a previous employer should share in that liability.

Some practitioners have operated under the mistaken belief that a subsequent employer's right to contribution is subject to the 2 year limitations statute that governs claims by an injured employee.

This decision by the 1st District Court of Appeal makes clear that a subsequent employer is not subject to the 2 year limitation that a claimant must observe for filing a first Petition for Benefits.

A subsequent employer may bring an action for contribution anytime within 4 years after first payment of benefits or after judgment establishing liability to pay benefits, whichever is earlier.

by Mark A. Faris. Mark is a Florida attorney associated with the law firm of Hinshaw & Culbertson LLP. He can be reached by e-mail at MFaris@HINSHAWLAW.COM, or by phone at (954) 467-7900.

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