What is a Third-Party Lawsuit? Here's What You Need to Know

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Have you suffered a work injury or a workplace accident? You might be able to file a third-party claim. It can help you get compensation for your medical bills, wages you've lost, and pain and suffering - which aren't covered by workers' compensation, at least not entirely.

Our experienced attorneys will help you understand the process. Here's everything you need to know.

Summary of the Key Findings

If you’ve been injured at work or involved in a workplace accident, you're entitled to workers' compensation benefits.
If the incident was a result of third-party's negligence, you're eligible for a third-party lawsuit.
Connect with a reputable law office before filing a claim to determine the best course of action.

What Does a Third-Party Lawsuit Mean?

A third-party lawsuit is a type of personal injury claim. It can be filed by an employee who suffered a work-related injury or was involved in an accident while on duty.

The claim is filed against a third party—a negligent entity or person that isn't an employer or employee's co-worker. We'll list some examples of third parties below.

For now, let's go through the main differences between a third-party and a workers' compensation claim:

Different defendants. Workers' comp claims can be filed only against an employer or co-workers. Third-party claims can only be filed against other entities or persons.
Eligibility. As a worker, you're always eligible to get workers' compensation if you've been injured on the job. However, to win a third-party lawsuit, you'll need to prove that your injury is a direct result of third-party's actions or negligence.
Reimbursements. Workers' comp covers only a percentage of lost wages and medical bills. A third-party lawsuit can reimburse your total wages and medical expenses and even provide compensation for pain and suffering.

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Examples of Third Parties

Injured workers can file third-party liability claims against entities or persons such as:

Manufacturers of defective products
Maintenance firms
Security companies
General contractor
Other contractors on a construction site
Property owner

Note that you won't be filing a claim against a third party but rather their insurance company.

Common Cases In Which Victims Are Reimbursed

Here are a few typical cases in which injured employees have a good chance of winning:

Negligence on a construction site
A motor vehicle accident
A defective product
A workplace attack

However, determining which entity or person should be held accountable for the injuries suffered by a plaintiff isn't always easy. It may require more thorough research.

For that reason, you should collect as much evidence as you can.

Hold onto your medical records. Find photographs or video footage that could help you prove your claims. And be prepared to be interviewed by suitable experts.

Should You File a Third-Party Lawsuit?

An employee can win a third-party lawsuit only if his injury results from a third party's negligence.

So, the first thing you want to figure out is who was at fault—the employer or another entity or person.

For example, your employer might have been aware that a machine that caused your injuries was faulty.

If he didn't take appropriate action, the incident is his fault.

In that case, a third party can't be held responsible for work injuries.

Consider other factors, too:

How much compensation you'd be able to recover
The price and time you'll spend on your lawsuit
Whether and how much you'll have to pay back to workers' comp

So, before you go ahead and file a personal injury claim, seek out legal advice from an experienced lawyer.

FAQs

How Can Third-Party Lawsuits Help the Victim?

Third-party lawsuits can help the victim recover the total amount of lost wages and medical expenses and receive punitive damages for pain, suffering, and mental anguish.

How does a third-party lawsuit differ from a workers' compensation claim?

A third-party lawsuit targets a party other than the employer for workplace injuries, seeking damages beyond workers' compensation benefits, such as pain and suffering. Workers' compensation claims are limited to employer-provided benefits for workplace injuries.

Are there time limits for filing a third-party lawsuit?

Yes, third-party lawsuits are subject to statutes of limitations, which vary by state and the type of claim. It's crucial to file within these time limits to avoid losing the right to seek compensation.

Can multiple third parties be sued in a single lawsuit?

Yes, multiple third parties can be sued in a single lawsuit if each played a role in causing the injury or harm. This approach can streamline legal proceedings and ensure all responsible parties are held accountable.