ALFAR CREAMERY COMPANY AND U. S. FIDELITY & GUARANTY COMPANY, APPELLANTS,
v.
WARREN G. WILLIAMS, JR., SEABOARD AIRLINE RAILROAD COMPANY, A FOREIGN CORPORATION AUTHORIZED TO DO BUSINESS IN THE STATE OF FLORIDA, AND GEORGE WILBUR EADDY, APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
A workers' compensation insurance carrier sought equitable distribution of an injured employee's judgment against a third-party tortfeasor (railroad company), but the trial court denied the claim because the carrier failed to record its notice of lien as required by Florida statute. The appellate court affirmed, holding that strict compliance with statutory recording requirements is mandatory despite all parties having actual knowledge of the compensation payments.
The workers' compensation carrier is not entitled to equitable distribution without strict compliance with the statutory requirement to record the notice of lien. Actual knowledge by all parties is insufficient; the carrier must comply with all procedural requirements set forth in Florida Statute § 440.39(3)(a) to avail itself of statutory subrogation rights.
[1] A workers' compensation carrier must file and record a notice of payment of compensation benefits in the employee's lawsuit against a third-party tortfeasor to establish…
[2] Actual knowledge of compensation payments by parties to a lawsuit does not substitute for the statutory requirement of filing and recording a notice of lien by the compen…
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Upon suit being filed, the employer or the insurance carrier, as the case may be, may file in the suit a notice of payment of compensation and medical benefits to the employee or his dependents, which said notice shall be recorded and the same shall constitute a lien upon any judgment recovered to the extent that the Court may determine to be their pro rata share for compensation benefits paid or to be paid under the provisions of this law.”
Statement of the statutory requirement that a notice of lien must be recorded to constitute a valid lien on a judgment.
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceWarren G. Williams, Jr. was injured while working for Alfar Creamery Company and sued Seaboard Airline Railroad Company for damages. United States Fid…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Notice Of Lien cases and more on FLexlaw
DOWNEY, Chief Judge.
Appellee, Warren G. Williams, Jr., was injured by Seaboard Airline Railroad Company while working in the course and scope of his employment with Alfar Creamery Company. Eventually Williams sued Seaboard and United States Fidelity & Guaranty Company, the workmen’s compensation carrier, filed a notice of claim of lien for payment of workmen’s compensation benefits to Williams and served all parties with copies of the notice. The notice was never recorded.
After extended litigation Williams successfully recovered a judgment against Seaboard. A motion for equitable distribution filed on behalf of United States Fidelity and Guaranty Company was denied by the trial court because the compensation carrier’s notice of lien was not recorded. It is that order we have for review.
Section 440.39(3)(a), Florida Statutes (1977), provides in pertinent part:
“. . Upon suit being filed, the employer or the insurance carrier, as the case may be, may file in the suit a notice of payment of compensation and medical benefits to the employee or his dependents, which said notice shall be recorded and the same shall constitute a lien upon any judgment recovered to the extent that the Court may determine to be their pro rata share for compensation benefits paid or to be paid under the provisions of this law.” (Emphasis supplied.) The statute in question provides that a compensation carrier (or employer if self insured) is entitled to an equitable distribution of the injured employee’s award if the carrier files a notice of lien in the litigation and records the notice. Here, the parties were all on notice of the compensation payments to the employee so there is no lack of notice. Nonetheless, in Cook Motor Company v. Vaughn, 189 So. 2d 536 (Fla. 1st DCA 1966), a case in which the carrier had not filed a notice of payment of compensation in the suit, the court held the carrier was not entitled to the benefits of Section 440.-39(3)(a) even though all parties had knowledge of the existence of the payment of compensation to the employee. Thus, it appears that the fact the interested parties have actual knowledge of the existence of the potential claim does not suffice. This position can be justified because the carrier’s subrogation rights are a creature of statute and in order to be entitled to the benefits of the statute the claimant must conform to the requirements of the statute. As the court stated in Cook, supra :
“. . .In 1951 the legislature amended Section 440.39, Florida Statutes, F.S.A. by granting to the employee an opportunity to control his lawsuit. By that amendment the injured employee was afforded the right to collect workmen’s compensation benefits and at the same time institute suit against a third party tortfeasor. If the injured employee filed suit, the employer or his insurance carrier had the right to file in that suit a notice of payment of compensation benefits, and the same by operation of law constituted a lien upon any judgment recovered to the extent that the court determined to be their pro rata share for the benefits paid. This 1951 amendment, which is retained in the statutes today, gave the injured employee the right to control his own law suit against the third party tortfeasor and provided for limited subrogation on an equitable basis. The compensation insurer has no right of subrogation except as granted by statute, therefore in order for it to avail itself of the benefits conferred by statute, it must comply with the rules, regulations, burdens and conditions provided by law. The conditions prerequisite for subrogation in such cases are those set forth in the first paragraph under subsection 440.39(3) — that is, filing in the suit notice of payment of compensation and serving notice of payment of compensation upon all parties to the suit.” 189 So. 2d at 538.
Accordingly, since the appellant insurance carrier failed to comply with the statute by not recording its claim of lien we find no error demonstrated in the order under review.
AFFIRMED.
DAUKSCH and MOORE, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Luddy Gene Kight and Sandra M. Kight v. Capeletti Bros., 384 So. 2d 1302 (Fla. 4th DCA 1980)…id or would pay to or on behalf of the claimant those sums. Neither document was recorded. Recalling that ap-pellee stipulated that its motion “was the first formal claim of lien” filed by appellee, the trial court in Alfar Creamery Co. v. Williams, 366 So. 2d 458 (Fla. 4th DCA 1978), denied a motion for equitable distribution because the compensation carrier’s notice of lien was not recorded, and on appeal the order was affirmed. Appellee’s motion likewise should have been denied. The trial court did not hav…
-
Cont'l Ins. Co. & Underwriters Adjusting Co. v. Indus. Fire & Cas. Ins. Co. & Joseph Brannen, 427 So. 2d 792 (Fla. 3d DCA 1983)…ired by Section 440.39(3)(a), Florida Statutes (1975).1 Cotton Belt Insurance Co., Inc. v. Travelers Insurance Co., 402 So. 2d 69 (Fla. 4th DCA 1981); Right v. Capeletti Brothers, 384 So. 2d 1302 (Fla. 4th DCA 1980); Alfar Creamery Co. v. Williams, 366 So. 2d 458 (Fla. 4th DCA 1978), cert. denied, 374 So. 2d 98 (Fla.1979); cf. Aetna Insurance Co. v. Harper, 379 So. 2d 1019 (Fla. 2d DCA 1980). See Dunnell v. Malone and Hyde, Inc., 425 So. 2d 646 (Fla. 3d DCA 1983). The other issues raised present no basis for…
-
Cotton Belt Ins. Co., Inc. v. Travelers Ins. Co., 402 So. 2d 69 (Fla. 4th DCA 1981)…Florida Statutes (1977), which specifically required that a lien be recorded. This court has held recording to be essential under the statute. Kight v. Capeletti Brothers, 384 So. 2d 1302 (Fla. 4th DCA 1975), and Alfar Creamery Company v. Williams, 366 So. 2d 458 (Fla. 4th DCA 1979). Appellant points out that this statute was amended effective July 1, 1979, when the Legislature deleted the words “shall be recorded” as applicable to the lien. Appellant urges the trial court erred in not giving this amendment…
Previewing 3 of 9 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Cook Motor Co. v. Vaughn, 189 So. 2d 536 (Fla. 1st DCA 1966)