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2419 After paying workers' compensation benefits to an employee, if an employer intervenes and actively participates in the employee's third party tort action, settlement proceeds of the action should be used first to pay litigation costs and fees of the attorneys for employer and employee, next to reimburse the employer for benefits paid, and finally to compensate the employee for the injury; however, in calculating the employer's reimbursement, deductions should be made for the fees paid to the employer's attorney and for the employer's pro-rata share of litigation costs.CitationSUMMERS v NEWMAN (Employer's Fees) 20 C4 1021 [See: LabC 3200 etseq; Quinn v State 15 C3 162; Phelps v Stostad 16 C4 23, T/AT 8/97]
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