OPALA, J.
¶ 1 The dispositive issue tendered for corrective relief on certiorari is whether the workers' compensation carrier's statute-based district court claim was erroneously dismissed as a time-barred action. We answer in the affirmative.
I
ANATOMY OF LITIGATION
¶ 2 This is an action by the workers' compensation carrier, Association of County Commissioners of Oklahoma State Insurance Fund (ACCOSIF), against the claimant, Jim Hagelberg (Hagelberg), the third-party tortfeasor, Guymon Glass (tortfeasor), and the latter's insurer, American States Insurance Company (tortfeasor's insurer, ASIC). Invoking the provisions of 85 0.S.1991 § 44(2),2 ACCOSIF seeks to recov[990] er a portion of the amount paid to Hagelberg in an earlier compensation claim's settlement. As against Hagelberg ACCOSIF advances the theory of statutory pro tanto recoupment;3 against the tortfeasor's insurer ACCOSIF appears to press a claim under § 44(a) for a wrongful payout made in breach of duty to a known (or knowable) statutory assignee of a chose in action,4 whose theoretical underpinnings are somewhat akin to those advanced in Shebester v. Triple Crown Insurers 5 and in a trilogy of attorney's lien [991] cases.6 As for the tortfeasor, we are at a loss to divine from the record what theory of liability is being pressed against that party. We leave that issue unresolved. It is to be dealt with at nisi prius after remand.
Antecedent Litigation
13 Hagelberg, a state employee, sustained on 3 March 1992 an on-the-job-injury in a vehicular accident with an employee of the tortfeasor. He sought workers' compensation benefits. Two days before the two-year statute would have expired, Hagelberg (claimant) sued the actor in a common-law tort action.7 ACCOSIF, the employer's carrier, had paid Hagelberg $26,534.59 in workers' compensation benefits.8
14 Nearly two years following ACCO-SIFs discharge of its compensation lability, the claimant's tort action came to be terminated by settlement. By its terms the tort-feasor's insurer paid Hagelberg the sum of $42,500.00. This action by ACCOSIF was brought on 6 October 1997, just over one year after ACCOSIF alleges to have learned of this settlement.9
History of Present Litigation
15 Declaring it time-barred as a subro-gation claim,10 the trial court dismissed AC-COSIF's action on defendants' motion.11 The [992] Court of Civil Appeals (COCA) reversed the nisi prius dismissal and remanded the cause, holding that the statute of limitations to be applied to this action began to run when the injured party, whose claim was paid by the tortfeasor, refused to "reimburse" the workers' compensation insurer.
16 Although we agree with COCA's conclusion that the trial court's dismissal order cannot stand, we granted certiorari to provide precedential guidance on a novel point of law. For want of adequate record support, today's pronouncement does not finally settle the following issues: (1) whether a § 44(a) claim would lie in this case against the tort-feasor as well as against its insurer; and if so, on what theory it may be pressed against the former party; and (2) the nature of liability, if any, the tortfeasor is to bear, directly and severally, to the plaintiff (workers' compensation carrier).12
II
BY THIS ACTION, AUTHORIZED BY THE PROVISIONS OF 85 0.8.1991 § 44(A), PLAINTIFF SEEKS STATUTE-BASED PRO TANTO RE-COUPMENT OF ITS WORKERS COMPENSATION PAYOUT, NOT SUBROGATION PRESCRIBED BY THE TERMS OF 85 0.$.1991 § 44(C)
17 The action brought by ACCO-SIF was mistakenly characterized (both by the defendants and by the district court) as its subrogation claim.13 The terms of 85 0.8. 1991 § 44 fashion a key distinction between subrogation and the demand advanced in the present action.14 Had ACCOSIF pressed its claim against the tortfeasor before Hagelberg brought his suit, or had ACCOSIF joined Hagelberg in the latter's tort claim, the action would have come under the law's subro-gation rubric.15 The present claim against Hagelberg falls instead into the pro tamto recoupment category prescribed by the provisions of 85 O.S.1991 § 44(a);16 on the other hand, ACCOSIF's claim against the tortfea-sor's insurer is to be viewed as one for wrongful payout.17 The record leaves us uninformed as to the theory pressed against the tortfeasor. The critical payout was made by the tortfeasor's insurer, not by the tortfeasor itself. Absent some record showing of the tortfeasor's involvement in the wrongful payout, we are at a loss to know what theory is pressed against the latter entity. There is no paper trail in this case of the tortfeasor's participation in any payout alleged to be wrongful.
T8 Neither ACCOSIF's non-join-der in Hagelberg's tort litigation nor Hagel-berg's subsequent settlement operates as a bar to ACCOSIEFE's pursuit of its present claim for the legislatively sanctioned portion of Hagelberg's settlement. ACCOSIE's stat[993] ute-based pro tanto recoupment demand clearly is authorized by the terms of 85 O.S. 1991 § 44(a).18
¶ 9 Because the action cannot be characterized as one for subrogation, the two-year statute of limitations that would have begun to run from the date of the harmful event does not bar ACCOSIF's claim now before us.19
IH
THE THREE-YEAR STATUTE OF LIME TATIONS PRESCRIBED IN 12 O.S. 1991 $ 95(2) APPLIES TO THE CLAIM AGAINST THE CLAIMANT AND TO THAT AGAINST THE TORTFEASOR'S INSURER
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OPALA, J.
¶ 1 The dispositive issue tendered for corrective relief on certiorari is whether the workers' compensation carrier's statute-based district court claim was erroneously dismissed as a time-barred action. We answer in the affirmative.
I
ANATOMY OF LITIGATION
¶ 2 This is an action by the workers' compensation carrier, Association of County Commissioners of Oklahoma State Insurance Fund (ACCOSIF), against the claimant, Jim Hagelberg (Hagelberg), the third-party tortfeasor, Guymon Glass (tortfeasor), and the latter's insurer, American States Insurance Company (tortfeasor's insurer, ASIC). Invoking the provisions of 85 0.S.1991 § 44(2),2 ACCOSIF seeks to recov[990] er a portion of the amount paid to Hagelberg in an earlier compensation claim's settlement. As against Hagelberg ACCOSIF advances the theory of statutory pro tanto recoupment;3 against the tortfeasor's insurer ACCOSIF appears to press a claim under § 44(a) for a wrongful payout made in breach of duty to a known (or knowable) statutory assignee of a chose in action,4 whose theoretical underpinnings are somewhat akin to those advanced in Shebester v. Triple Crown Insurers 5 and in a trilogy of attorney's lien [991] cases.6 As for the tortfeasor, we are at a loss to divine from the record what theory of liability is being pressed against that party. We leave that issue unresolved. It is to be dealt with at nisi prius after remand.
Antecedent Litigation
13 Hagelberg, a state employee, sustained on 3 March 1992 an on-the-job-injury in a vehicular accident with an employee of the tortfeasor. He sought workers' compensation benefits. Two days before the two-year statute would have expired, Hagelberg (claimant) sued the actor in a common-law tort action.7 ACCOSIF, the employer's carrier, had paid Hagelberg $26,534.59 in workers' compensation benefits.8
14 Nearly two years following ACCO-SIFs discharge of its compensation lability, the claimant's tort action came to be terminated by settlement. By its terms the tort-feasor's insurer paid Hagelberg the sum of $42,500.00. This action by ACCOSIF was brought on 6 October 1997, just over one year after ACCOSIF alleges to have learned of this settlement.9
History of Present Litigation
15 Declaring it time-barred as a subro-gation claim,10 the trial court dismissed AC-COSIF's action on defendants' motion.11 The [992] Court of Civil Appeals (COCA) reversed the nisi prius dismissal and remanded the cause, holding that the statute of limitations to be applied to this action began to run when the injured party, whose claim was paid by the tortfeasor, refused to "reimburse" the workers' compensation insurer.
16 Although we agree with COCA's conclusion that the trial court's dismissal order cannot stand, we granted certiorari to provide precedential guidance on a novel point of law. For want of adequate record support, today's pronouncement does not finally settle the following issues: (1) whether a § 44(a) claim would lie in this case against the tort-feasor as well as against its insurer; and if so, on what theory it may be pressed against the former party; and (2) the nature of liability, if any, the tortfeasor is to bear, directly and severally, to the plaintiff (workers' compensation carrier).12
II
BY THIS ACTION, AUTHORIZED BY THE PROVISIONS OF 85 0.8.1991 § 44(A), PLAINTIFF SEEKS STATUTE-BASED PRO TANTO RE-COUPMENT OF ITS WORKERS COMPENSATION PAYOUT, NOT SUBROGATION PRESCRIBED BY THE TERMS OF 85 0.$.1991 § 44(C)
17 The action brought by ACCO-SIF was mistakenly characterized (both by the defendants and by the district court) as its subrogation claim.13 The terms of 85 0.8. 1991 § 44 fashion a key distinction between subrogation and the demand advanced in the present action.14 Had ACCOSIF pressed its claim against the tortfeasor before Hagelberg brought his suit, or had ACCOSIF joined Hagelberg in the latter's tort claim, the action would have come under the law's subro-gation rubric.15 The present claim against Hagelberg falls instead into the pro tamto recoupment category prescribed by the provisions of 85 O.S.1991 § 44(a);16 on the other hand, ACCOSIF's claim against the tortfea-sor's insurer is to be viewed as one for wrongful payout.17 The record leaves us uninformed as to the theory pressed against the tortfeasor. The critical payout was made by the tortfeasor's insurer, not by the tortfeasor itself. Absent some record showing of the tortfeasor's involvement in the wrongful payout, we are at a loss to know what theory is pressed against the latter entity. There is no paper trail in this case of the tortfeasor's participation in any payout alleged to be wrongful.
T8 Neither ACCOSIF's non-join-der in Hagelberg's tort litigation nor Hagel-berg's subsequent settlement operates as a bar to ACCOSIEFE's pursuit of its present claim for the legislatively sanctioned portion of Hagelberg's settlement. ACCOSIE's stat[993] ute-based pro tanto recoupment demand clearly is authorized by the terms of 85 O.S. 1991 § 44(a).18
¶ 9 Because the action cannot be characterized as one for subrogation, the two-year statute of limitations that would have begun to run from the date of the harmful event does not bar ACCOSIF's claim now before us.19
IH
THE THREE-YEAR STATUTE OF LIME TATIONS PRESCRIBED IN 12 O.S. 1991 $ 95(2) APPLIES TO THE CLAIM AGAINST THE CLAIMANT AND TO THAT AGAINST THE TORTFEASOR'S INSURER
¶ 10 The terms of 12 O.S.1991 § 95(2) govern "an action upon a liability created by statute other than a forfeiture or penalty."20 According to the plain language of 85 O.S. 1991 § 44(a), an injured employee-who recovers from a third-party tortfeasor-is liable to the employer (or to the latter's insurer) who paid the compensation benefits. Hagelberg's liability to ACCOSIF is hence statute-based.21 The limitation to be applied is the three-year period prescribed by the terms of 12 O.S.1991 $ 95(2) for one's pursuit of liability created by statute.22
[994]*99411 The liability of the tortfeasor's insurer to ACCOSIF also is governed by the same three-year time bar. This is so because the latter obligation is likewise rested on the terms of § 44(a).
A.
The Limitation to be Applied to ACCO-SIF's Pro Tanto Recoupment Action Against Hagelberg
112 ACCOSIF's claim against Ha-gelberg acerued when claimant became entitled to the proceeds (or part of the proceeds) of his settlement with the tortfeasor.23 The moment that recovery became Hagelberg's due marks the time at which ACCOSIE's right to reclaim its statutorily prescribed compensation payout arose by the terms of § 44(g).24
B.
The Limitation that Governs ACCOSIE's Wrongful Payout Claim Against The Tortfeasor's Insurer
113 ACCOSIF's right to payment from the tortfeasor's insurer is prescribed by § 44 and reinforced by the theoretical underpinnings of Shebester and the trilogy of cases discussed supra.25 It is bolstered by the notice provisions to be found in 25 0.S.1991 §§ 10-14. The limitation bar was triggered when the tortfeasor's insurer, knowing of ACCOSIF's statutory recoupment claim,26 paid Hagelberg the sum due the latter according to the terms of their settlement. ACCOSIF's remedy would stand extinguished three years later. See 12 00.98.1991 § 95@Q).
C.
The Limitation Period that Governs ACCOSIF's Claim Against The Tortfeasor
{14 From the sparse record we are unable to divine on what theory recovery is sought from the tortfeasor (as distinguished from its insurer) gua co-obligor upon the liability in suit.27 We hence express no opinion concerning the nature of that claim but confine ourselves here to the single pronouncement: If ACCOSIF's action against the tortfeasor also lies, it, too, would be governed by the three-year statute that is triggered by a payout made to the employee by one with notice of the compensation carrier's statutory claim to the proceeds.
IV
ACCOSIE'S CLAIM DOES NOT APPEAR TO HAVE BEEN TIME-BARRED
115 It is clear that none of the three defendants can be shielded from lability to ACCOSIF by the pleaded time bar which formed the nisi prius dismissal basis. The terms of § 44(a) provide that a workers' compensation carrier may recover its pro tanto share from a settlement between the tortfea-[995] sor and the claimant.28 -This is the essence of the statutory obligation in suit. The tortfea-sor's insurer cannot escape its responsibility to the plaintiff if its settlement remittance to the claimant was in fact a wrongful payout, i.e., one that was made with notice of ACCO-SIFs § 44(a) claim.
V
SUMMARY OF TODAY'S PRONOUNCEMENT
116 Because ACCOSIF's claim was incorrectly perceived as a time-barred subro-gation demand, the nisi prius dismissal must be reversed insofar as it affects all three defendants, and the cause be remanded for further proceedings.
117 A petition must not be dismissed for failure to state a legally cognizable claim unless the allegations indicate beyond any doubt that the pleader can prove no set of facts which would entitle him to relief.29 This is the so-called Conley30 test.
118 An appellate tribunal does not make first-instance rulings.31 It is the trial court's duty to determine on remand whether ACCOSIEFE's claim against each of the three defendants otherwise meets the Conley32 test.33
119 On certiorari previously granted upon separate petitions brought by the claimant, by the third-party tortfeasor, and by the latter party's insurer, the Court of Civil Appeals' opinion is vacated; the trial court's dismissal order is reversed and the cause is remanded for further proceedings to be consistent with this pronouncement.
120 HARGRAVE, V.C.J., HODGES, LAVENDER, OPALA, and WINCHESTER, JJ., concur.
121 SUMMERS, C.J. and BOUDREAU, J., concur in result. -
122 KAUGER and WATT, JJ., concur in part and dissent in part.
(a) If a worker entitled to compensation under the Workers' Compensation Act is injured or killed by the negligence or wrong of another not in the same employ, such injured worker shail, before any suit or claim under the Workers' Compensation Act, elect whether to take compensation under the Workers' Compensation Act, or to pursue his remedy against such other. Such election shall be evidenced in such manner as the Administrator may by rule or regulation prescribe. If he elects to take compensation under the Workers' Compensation Act, the cause of action against such other shall be assigned to the insurance carrier liable for the payment of such compensation, and if he elects to proceed against such other person or insurance carrier, as the case may be, the employer's insurance carrier shall contribute [990] only the deficiency, if any, between the amount of the recovery against such other person actually collected, and the compensation provided or estimated by the Workers' Compensation Act for such case. The compromise of any such cause of action by the worker at any amount less than the compensation provided for by the Workers' Compensation Act shall be made only with the written approval of the Court. Whenever recovery against such other person is effected without compromise settlement by the employee or his representatives, the employer or insurance company having paid compensation under the Workers' Compensation Act shall be entitled to reimbursement as hereinafter set forth and shall pay from its share of said reimbursement a proportionate share of the expenses, including attorneys fees, incurred in effecting said recovery to be determined by the ratio that the amount of compensation paid by the employer bears to the amount of the recovery effected by the employee. After the expenses and attorneys fees have been paid, the balance of the recovery shall be apportioned between the employer or insurance company having paid the compensation and the.employee or his representatives in the same ratio that the amount of compensation paid by the employer bears to the total amount recovered; provided, however, the balance of the recovery may be divided between the employer or insurance company having paid compensation and the employee or his representatives as they may agree.
In the event that recovery is effected by compromise settlement, then in that event the expenses, attorneys fees and the balance of the recovery may be divided between the employer or insurance company having paid compensation and the employee or his representatives as they may agree. Provided, that in the event they are unable to agree, then the same shall be apportioned by the district court having jurisdiction of the employee's action against such other person, in such manner as is just and reasonable.
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(c) The employer or his insurance carrier shall have the right of subrogation to recover money paid by the employer or his insurance carrier for the expenses of the last illness or accident under the Workers' Compensation Act from third persons, with all common law rights against other than the employer and his employees preserved and to be in those persons who would have had such rights had there been no benefits under the Workers' Compensation Act.
(emphasis supplied).
When known (or when he should have been known) to a tortfeasor's insurer, an assignee of a tort claim whose interest appears on the face of § 44(a) has standing to enforce the former's duty to pay the person rightfully entitled to the proceeds. By the terms of § 44(a), the right of the compensation carrier, qua assignee, to invoke its statute-based pro tanto assignment for recovery from the tortfeasor is co-extensive with that which also runs against the employee after the latter is paid the settlement proceeds. More simply put, because the compensation carrier has a legally recognized chose in action in the employee's claim against the tortfeasor, the carrier may bring an action directly against the tortfeasor to recover its statutorily assigned share of the settlement. One who pays the obligee knowing that the latter's chose in action has been assigned to another, in whole or in part, is liable to the assignee for the amount of overpayment. American Bank of Commerce v. City of McAlester, 1976 OK 126, 555 P.2d 581, 586; American Inv. Co. v. Baker, 1924 OK 998, 104 Okla. 95, 230 P. 724, 725.
Similarly, an employer (or insurer) who makes the remittance of compensation benefits to a claimant, knowing that a part of the expended sum is burdened by a legal interest of another, is liable to the latter for the excess paid. The employer hence pays at its own peril. See Crane Mfg. Co. v. Brown, 1964 OK 155, 393 P.2d 820 (an employer with notice of claimant's employment of an attorney cannot defeat the attorney's inchoate lien for the fee amount by settling directly with claimant.); O.C. Whitaker, Inc. v. Dillingham, 1944 OK 282, 194 Okla. 421, 152 P.2d 371 (when a compensation award directs that a portion of its amount be paid to claimant's attorney, and the insurer fails to make that payment for any reason, the insurer is not relieved of liability.); Helmerich & Payne, Inc., v. State Indus. Comm'n, 1940 OK 198, 187 Okla. 335, 102 P.2d 586 (a claimant's attorney employed on a contingent fee basis has an inchoate lien on the compensation awarded claimant until the amount of the fee has been finally set and approved by the Industrial Commission-now Workers' Compensation Court; an employer who paid proceeds of an award to claimant before an attorney's fee was finally set and approved is not relieved of liability for that fee.).
For further discussion of legal protection afforded attorney's and medical liens, see State ex rel. Dept. of Human Serv. v. Allstate Ins. Co., 1987 OK 91, 744 P.2d 186, 188. See also 5 O.S.1991 § 6 (attorney's lien); 42 O.S.1991 § 43 (hospital lien); 42 O.S.1991 § 46 (physician's lien); Fugate v. Mooney, 1998 OK CIV APP 48, 958 P.2d 818.
According to the terms of § 44(a), supra note 2, absent a "compromise settlement" the workers' compensation insurer is entitled to reimbursement of a proportion of the amount paid by the tortfeasor's insurer to the total amount recovered minus a proportion of the expenses incurred in the recovery. The court in Prettyman, supra at ¶ 16, 579 defined a compromise settlement as one where the claimant receives less from the third-party tortfeasor than the amount of the workers' compensation award. Hence, if a workers' compensation carrier pays a claimant $1000 and the claimant then recovers $5000 from a tortfeasor with expenses of $1000 paid for court costs and attorney's fees, the balance ($4000) is divided proportionately. The workers' compensation carrier receives the equivalent of the ratio of $1000 to $5000, or 20% of the balance, which amounts to $800. The claimant keeps the remaining $3200. We held in Landrum v. National Union, 1996 OK 18, 120, 912 P.2d 324, that under this formula the carrier is also entitled to recover a proportionate share of prejudgment interest.