§10.20 Employee’s Obligations to Employer Following Third-party Recovery

• Library: Workers' Compensation Law Deskbook Vol. 2 (2020 Ed.)

G. (§10.20) Employee’s Obligations to Employer Following Third-Party Recovery

An employee who pursues a tort action against a third-party tortfeasor and obtains a recovery is under an obligation to protect the employer’s right of subrogation. Schumacher v. Leslie, 232 S.W.2d 913 (Mo. banc 1950). To the extent that the employee obtains a recovery, “he becomes a trustee of an express trust for the benefit of the employer to the extent of the employer’s proportionate share of the recovery.” Consol....