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On February 12, 2009 the Benefits Review Board (“BRB”)
issued its Decision and Order, in
M.K. v. California
United Terminals, et al, Case Nos. 08-392,08-450&
08-606 regarding three Longshore and Harbor Workers’
Compensation Act claims in which the ILWU-PMA Welfare Plan
(“Welfare Plan”) had asserted its lien rights. The issue
before the BRB was whether employer/insurance carriers could
properly settle claims (with claimants) without
simultaneously addressing the Welfare Plan’s lien claims for
weekly indemnity and medical benefits paid by it on behalf of
claimants. This issue had never been addressed by the BRB or
any of the circuit courts. In all three cases the
Administrative Law Judges ruled, over the Welfare Plan’s
objections, that such settlements were appropriate. However,
the BRB properly granted the Welfare Plan’s appeal in all
three cases, vacated the significant monetary settlements in
such matters and held that the Welfare Plan is a
party-in-interest and its interests must be addressed in any
such settlements submitted for approval. The Decision ends a
long-standing practice of “settling around” the Welfare
Plan’s liens for weekly indemnity benefits and claims for
reimbursement of medical benefits.
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