537.693. Right of subrogation, payment of a claim--division lien on any compensation received by claimant--rulemaking authority. - Missouri Statutes

Right of subrogation, payment of a claim--division lien on anycompensation received by claimant--rulemaking authority.

537.693. 1. Payment of any compensation pursuant to sections 537.675to 537.693 shall vest in the state of Missouri a right of subrogation tothe extent of such compensation paid, to any right or right of action ofthe claimant to recover payments with respect to which the compensation hasbeen paid and to enforce the underlying judgment against the tort-feasor.The attorney general may enforce the subrogation interest, and may filesuit to enforce that right of subrogation.

2. The division shall have a lien on any compensation received by theclaimant from the tort-feasor or the tort-feasor's agent after payment bythe division to the claimant, in addition to compensation received pursuantto the provisions of sections 537.675 to 537.693, for injuries or deathresulting from the incident upon which the claim is based. The claimantshall retain, as trustee for the division, so much of the recovered fundsas necessary to reimburse the Missouri tort victims' compensation fund tothe extent that compensation was paid to the claimant from that fund.

3. If a claimant initiates any legal proceeding to recoverrestitution or damages or enforce the underlying judgment related to thetort upon which the claim is based, or if the claimant enters intonegotiations to receive any proceeds in settlement or a claim forrestitution or damages related to the tort, the claimant shall give thedivision written notice within fifteen days of the filing of the action orentering into negotiations. The division may intervene in the proceedingof a claimant to enforce its subrogation interest. If a claimant fails togive such written notice to the division within the stated time period orprior to any attempt by claimant to reach a negotiated settlement of claimsfor recovery of damages related to the tort upon which the claim is based,the division's right of subrogation to receive or recover funds fromclaimant, to the extent that compensation was awarded by the division,shall not be reduced in any amount or percentage by the costs incurred byclaimant attributable to such legal proceedings or settlement, including,but not limited to, attorney's fees, investigative costs or court costs;however, if the claimant provides written notice to the division asrequired in this section then the subrogation interest of the divisionshall be reduced by a percentage equal to the percentage that theattorney's fees and expenses incurred by the claimant bears to the totalrecovery.

4. Whenever the division shall deem it necessary to protect, maintainor enforce the division's right to subrogation or to exercise any of itspowers to carry out any of its duties or responsibilities, the attorneygeneral may initiate legal proceedings or intervene in legal proceedings asthe division's legal representative.

5. The division is hereby granted authority to adopt rules andregulations, consistent with the provisions of sections 537.678 to 537.693,which rules and regulations may govern application for and distribution ofthose moneys appropriated to the division from the tort victims'compensation fund.

6. Any rule or portion of a rule, as that term is defined in section536.010, RSMo, that is created under the authority delegated in subsection5 of this section shall become effective only if it complies with and issubject to all of the provisions of chapter 536, RSMo, and, if applicable,section 536.028, RSMo. This section and chapter 536, RSMo, arenonseverable and if any of the powers vested with the general assemblypursuant to chapter 536, RSMo, to review, to delay the effective date or todisapprove and annul a rule are subsequently held unconstitutional, thenthe grant of rulemaking authority and any rule proposed or adopted afterAugust 28, 2001, shall be invalid and void.

(L. 2001 H.B. 107)