Rowland v. Dept. of Administrative Svcs

In Rowland v. Dept. of Administrative Svcs., 219 Ga. App. 899, 899-900 (466 S.E.2d 923) (1996), the injured employee (Young) settled with the third-party tort-feasor (Rowland) without the knowledge of his employer (DOAS), who had been paying him workers' compensation benefits. DOAS then brought suit against Rowland, asserting its subrogation rights under O.C.G.A. 34-9-11.1. Rowland, who was unaware that DOAS had been paying workers' compensation benefits and had a subrogation lien, "contended that her settlement with Young extinguished any subrogation lien against her." The Court agreed, reasoning that DOAS was statutorily authorized to sue Rowland only on claims that Young had against Rowland and that Young's settlement with Rowland had erased those claims. The Court noted in dicta, however, that DOAS's subrogation lien remained viable and that the result would be different "had Rowland settled with Young despite having knowledge of the workers' compensation claim and DOAS's right of subrogation." Id. at 902.