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House Journal: Page 761: Tuesday, March 17, 1998

 2   the system, and the following rights and duties ensue:
 3     (1)  The system shall be indemnified out of the
 4   recovery of damages to the extent of benefit payments
 5   made by the system, with legal interest, except that
 6   the plaintiff member's attorney fees may be first
 7   allowed by the district court.
 8     (2)  The system has a lien on the damage claim
 9   against the third party and on any judgment on the
10   damage claim for benefits for which the system is
11   liable.  In order to continue and preserve the lien,
12   the system shall file a notice of the lien within
13   thirty days after receiving a copy of the original
14   notice in the office of the clerk of the district
15   court in which the action is filed.
16     b.  If a member fails to bring an action for
17   damages against a third party within thirty days after
18   the system requests the member in writing to do so,
19   the system is subrogated to the rights of the member
20   and may maintain the action against the third party,
21   and may recover damages for the injury to the same
22   extent that the member may recover damages for the
23   injury.  If the system recovers damages in the action,
24   the court shall enter judgment for distribution of the
25   recovery as follows:
26     (1)  A sum sufficient to repay the system for the
27   amount of such benefits actually paid by the system up
28   to the time of the entering of the judgment.
29     (2)  A sum sufficient to pay the system the present
30   worth, computed at the interest rate provided in
31   section 535.3 for court judgments and decrees, of the
32   future payments of such benefits, for which the system
33   is liable, but the sum is not a final adjudication of
34   the future payment which the member is entitled to
35   receive.
36     (3)  Any balance shall be paid to the member.
37     c.  Before a settlement is effective between a
38   system and a third party who is liable for any injury,
39   the member must consent in writing to the settlement;
40   and if the settlement is between the member and a
41   third party, the system must consent in writing to the
42   settlement; or on refusal to consent, in either case,
43   the district court in the county in which either the
44   employer of the member or the system is located must
45   consent in writing to the settlement.
46     d.  For purposes of subrogation under this section,
47   a payment made to an injured member or the member's
48   legal representative, by or on behalf of a third party
49   or the third party's principal or agent, who is liable
50   for, connected with, or involved in causing the injury

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 1   to the member, shall be considered paid as damages

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Last update: Wed Mar 18 13:40:03 CST 1998
URL: /DOCS/GA/77GA/Session.2/HJournal/00700/00761.html
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