What is a “third party” case?

If you are injured on the job and suffer a compensable injury wherein it was due to the fault of another party other than the employer then you may have a cause of against that “third party.” If that is the case then the workers’ compensation carrier may also have a lien in this matter. The amount of their lien is limited to medical treatment and disability benefits that they have provided for you by way of your workers’ compensation claim. In order to resolve the third party action you will need to address this lien with the workers’ compensation carrier. It may be possible to have the lien waived by the carrier or extinguished by a Superior Court Judge.

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Workers’ Compensation Glossary of Legal Terms