Silvera v. Employers Insurance

40 P.3d 429, 118 Nev. 105, 118 Nev. Adv. Rep. 11, 2002 Nev. LEXIS 16
CourtNevada Supreme Court
DecidedFebruary 15, 2002
Docket33975
StatusPublished
Cited by8 cases

This text of 40 P.3d 429 (Silvera v. Employers Insurance) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silvera v. Employers Insurance, 40 P.3d 429, 118 Nev. 105, 118 Nev. Adv. Rep. 11, 2002 Nev. LEXIS 16 (Neb. 2002).

Opinion

OPINION

By the Court,

Agosti, J.:

Employers Insurance Company of Nevada (“EICON”) is the primary provider of workers’ compensation insurance to Nevada employers. Under NRS 616C.215(5), when an employee is injured on the job, EICON is subrogated to the employee’s right to recover damages in certain circumstances and may place a lien “upon the total proceeds of any recovery.”

*106 In this appeal, we are asked to decide if EICON may assert a lien against an injured employee’s recovery from an uninsured or underinsured motorist (“UM”) insurance policy maintained by a party other than the employer or employee. We conclude that EICON is not permitted to place a lien against such a recovery.

On November 16, 1994, appellant Joseph Silvera, an employee of the Greater Nevada Auto Auction, was involved in an automobile accident with another motorist, Janet Springmeyer. The accident occurred within the course and scope of Silvera’s employment with Auto Auction. Silvera sustained serious injuries. Toyota West owned the vehicle that was driven by Silvera.

Both Springmeyer and Toyota West carried automobile insurance. Springmeyer’s policy limits were $15,000.00. Toyota West carried a fleet UM policy with MIC Property and Casualty Insurance Corporation (“MIC”).

Silvera applied for and received workers’ compensation benefits through EICON. The payments totaled $47,218.97. In addition, Silvera filed a lawsuit against and ultimately settled with both Springmeyer and MIC for the damages he sustained in the collision. Silvera settled the claim against Springmeyer for the policy maximum of $15,000.00 and settled with MIC for $135,000.00. EICON subsequently asserted that it had a right under NRS 616C.215 to place a lien against the MIC settlement proceeds.

Upon settling his claims against Springmeyer and MIC, Silvera moved in that action for adjudication of the lien rights being asserted by EICON. Specifically, Silvera asked the court to declare that EICON had no lien rights with respect to his recovery from MIC, and requested a refund of the amount paid to EICON. EICON was served with the motion and filed its opposition thereto. 1 The district court denied the motion, determining that EICON was entitled to assert the lien and that Silvera was not entitled to a refund. This timely appeal followed.

We review the district court’s construction of NRS 616C.215 de novo. 2 Under NRS 616C.215, when an employee receives an injury for which compensation is payable, EICON may become *107 subrogated to the employee’s right to recover in two ways. First, EICON may become subrogated to an employee’s right of recovery under NRS 616C.215(2) when the circumstances causing an employee’s injury give rise to a legal liability in a person other than the employer or employee to pay damages. 3 Second, pursuant to NRS 616C.215(3)(b), EICON may' become subrogated to an employee’s right to recover proceeds under the employer’s UM policy; however, NRS 616C.215(3)(b) expressly precludes EICON from becoming subrogated to the employee’s right to recover proceeds under the employee’s own UM policy. 4 Once EICON is subrogated to an employee’s right to recovery, NRS 6160.215(5) grants EICON authority to place a lien upon the recovery of such proceeds, unless the proceeds were recovered from the employee’s employer. 5

Neither party disputes that NRS 616C.215(3)(b) expressly permits subrogation against a UM policy maintained by the employer and prohibits subrogation against a UM policy maintained by the *108 employee. The issue here, however, is whether EICON may assert subrogation rights against a UM policy that is maintained by a party other than the employer or employee. This involves an analysis of NRS 616C.215(2)(b), which grants subrogation rights to EICON whenever the circumstances causing an employee’s injury give rise to a legal liability in a person other than the employer or employee to pay damages. We conclude that NRS 616C.215(2)(b) does not grant EICON a right of subrogation against a UM policy that is maintained by a party other than the employer or employee.

NRS 616C.215(2)(b) defines the subrogation rights of the workers’ compensation insurer. This provision provides in relevant part:

2. When an employee receives an injury for which [workers’] compensation is payable . . . which was caused under circumstances creating a legal liability in some person, other than the employer or a person in the same employ, to pay damages in respect thereof:
(b) . . . the insurer . . . has a right of action against the person so liable to pay damages and is subrogated to the rights of the injured employee ....

(Emphases added.) The statute allows subrogation only against someone with a “legal liability ... to pay damages.”

In the 1991 decision of Truck Insurance Exchange v. SIIS, 6 this court determined that a UM insurance company is not someone with a “legal liability ... to pay damages” within the meaning of the subrogation statute. This court decided that only tortfeasors have a “legal liability ... to pay damages,” and NRS 616.560(l)(b) (now NRS 616C.215(2)(b)) grants the workers’ compensation insurer subrogation rights only against those liable in tort, not those liable in contract. 7

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Cite This Page — Counsel Stack

Bluebook (online)
40 P.3d 429, 118 Nev. 105, 118 Nev. Adv. Rep. 11, 2002 Nev. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silvera-v-employers-insurance-nev-2002.