Nuss Lumber Co., Inc. v. The Estate of Andy Monghan

Court of Civil Appeals of Alabama

Wilcox County | 91 So. 3d 90 | March 9, 2012


Employer entitled to recover the full amount of workers' compensation benefits paid before the plaintiff's estate collected any funds from a third-party settlement.

Andy Monghan was working for Nuss Lumber when he was involved in a car accident in 2002. The company paid him a substantial amount in workers' compensation benefits and Monghan also sued and settled with third parties involved in the accident.

Nuss Lumber filed a counter-claim seeking reimbursement from the third-party settlement citing their right under § 25-5-11(a), Ala.Code 1975.  The estate of Andy Monghan was added as a party after he passed away. After both parties agreed that Nuss Lumber was entitled to recover $1,380,634.50 from the settlement funds, the court had to determine how funds would be distributed between Nuss Lumber and the estate.

The court ruled that Nuss Lumber had the right to fully recoup the benefits it paid before the estate could receive any funds from the settlement, and it was not necessary to liquidate assets to give Nuss Lumber immediate repayment. 

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