Sec. 36. (a) Whenever disablement or death from an occupational disease arising out of and in the course of the employment for which compensation is payable under this chapter, shall have been sustained under circumstances creating in some other person than the employer and not in the same employ a legal liability to pay damages in respect thereto, the injured employee, or the employee’s dependents, in case of death, may commence legal proceedings against such other person to recover damages notwithstanding such employer’s or such employer’s occupational disease insurance carrier’s payment of, or liability to pay, compensation under this chapter. In such case, however, if the action against such other person is brought by the injured employee or the employee’s dependents and judgment is obtained and paid and accepted and settlement is made with such other person, either with or without suit, then from the amount received by such employee or dependents there shall be paid to the employer, or such employer’s occupational disease insurance carrier, the amount of compensation paid to such employee or dependents, plus the services and products and burial expense paid by the employer or such employer’s occupational disease insurance carrier, and the liability of the employer or such employer’s occupational disease insurance carrier to pay further compensation or other expenses shall thereupon terminate, whether or not one (1) or all of the dependents are entitled to share in the proceeds of the settlement or recovery and whether or not one (1) or all of the dependents could have maintained the action or claim for wrongful death.

     (b) In the event such employee or the employee’s dependents, not having received compensation or services and products or death benefits, or such employer’s occupational disease insurance carrier, shall procure a judgment against such other party for disablement or death from an occupational disease arising out of and in the course of the employment, which judgment is paid, or if settlement is made with such other person, either with or without suit, then the employer or such employer’s occupational disease insurance carrier shall have no liability for payment of compensation or for payment of medical, surgical, hospital, or nurse’s services and supplies or death benefits whatsoever, whether or not one (1) or all of the dependents are entitled to share in the proceeds of settlement or recovery and whether or not one (1) or all of the dependents could have maintained the action or claim for wrongful death.

     (c) In the event an employee, or in the event of the employee’s death, the employee’s dependents, shall procure a final judgment against such other person other than by agreement, for disablement or death from an occupational disease arising out of and in the course of the employment and such judgment is for a lesser sum than the amount for which the employer or such employer’s occupational disease insurance carrier is liable for compensation and for services and products, as of the date the judgment becomes final, then the employee, or in the event of the employee’s death, the employee’s dependents, shall have the option of either collecting such judgment and repaying the employer or such employer’s occupational disease insurance carrier for compensation previously drawn, if any, and repaying the employer or such employer’s occupational disease insurance carrier for services and products previously paid, if any, and of repaying the employer or such employer’s occupational disease insurance carrier, the burial benefits paid, if any, or of assigning all rights under said judgment to the employer or such employer’s occupational disease insurance carrier and thereafter receiving all compensation and services and products to which the employee, or in the event of the employee’s death, to which the employee’s dependents would be entitled if there had been no action brought against such other party.

     (d) If the employee or the employee’s dependents agree to receive compensation, because of an occupational disease arising out of and in the course of the employment, from the employer or such employer’s occupational disease insurance carrier, or to accept from the employer or such employer’s occupational disease insurance carrier by loan or otherwise, any payment on account of such compensation or institute proceedings to recover the same, the said employer or such employer’s occupational disease insurance carrier shall have a lien upon any settlement award, judgment, or fund out of which such employee might be compensated from the third party.

     (e) The employee, or in the event of the employee’s death, the employee’s dependents, shall institute legal proceedings against such other person for damages within two (2) years after said cause of action accrues. If, after said proceeding is commenced, the same is dismissed, the employer or such employer’s occupational disease insurance carrier, having paid compensation or having become liable therefor, may collect in their own name or in the name of the employee with a disability, or in the case of death, in the name of the employee’s dependents, from the other person in whom legal liability for damages exists, the compensation paid or payable to the employee with a disability, or the employee’s dependents, plus such services and products and burial expense paid by the employer or such employer’s occupational disease insurance carrier for which they have become liable. The employer or such employer’s occupational disease insurance carrier may commence such action at law for such collection against the other person in whom legal liability for damages exists, not later than one (1) year from the date said action so commenced, has been dismissed, notwithstanding the provisions of any statute of limitations to the contrary.

     (f) If said employee, or in the event of the employee’s death, the employee’s dependents, shall fail to institute legal proceedings, against such other person for damages within two (2) years after said cause of action accrues, the employer or such employer’s occupational disease insurance carrier, having paid compensation or having been liable therefor, may collect in their own name or in the name of the employee with a disability, or in the case of the employee’s death, in the name of the employee’s dependents, from the other person in whom legal liability for damage exists, the compensation paid or payable to the employee with a disability or to the employee’s dependents, plus the services and products and burial expenses, paid by them or for which they have become liable, and the employer or such employer’s occupational disease insurance carrier may commence such action at law for such collection against such other person in whom legal liability exists at any time within one (1) year from the date of the expiration of the two (2) years when the action accrued to the employee with a disability or, in the event of the employee’s death, to the employee’s dependents, notwithstanding the provisions of any statute of limitations to the contrary.

     (g) In such actions brought as provided in this section by the employee or the employee’s dependents, the employee or the employee’s dependents shall, within thirty (30) days after such action is filed, notify the employer or such employer’s occupational disease insurance carrier, by personal service or registered or certified mail, of such fact and the name of the court in which suit is brought, filing proof thereof in such action.

     (h) If the employer does not join in the action within ninety (90) days after receipt of the notice, then out of any actual money reimbursement received by the employer or such employer’s occupational disease insurance carrier pursuant to this section, they shall pay their pro rata share of all costs and reasonably necessary expenses in connection with such third party claim, action, or suit, and to the attorney at law selected by the employee or the employee’s dependents, a fee of twenty-five percent (25%), if collected without trial, of the amount of benefits after the expenses and costs in connection with such third party claim have been deducted therefrom, and a fee of thirty-three and one-third percent (33 1/3%), if collected after trial, of the amount of such benefits after deduction of the costs and reasonably necessary expenses in connection with such third party claim, action, or suit. The employer may, within ninety (90) days after receipt of notice of suit from the employee or the employee’s dependents, join in the action upon the employer’s motion so that all orders of court after hearing and judgment shall be made for the employer’s protection.

     (i) No release or settlement of claim for damages by reason of such injury or death, and no satisfaction of judgment in such proceedings shall be valid without the written consent of both employer or such employer’s occupational disease insurance carrier, and employee, or the employee’s dependents. However, in the case of the employer or such employer’s occupational disease insurance carrier, such consent shall not be required where the employer or such employer’s occupational disease insurance carrier has been fully indemnified or protected by court order.

Formerly: Acts 1937, c.69, s.29; Acts 1963, c.388, s.17; Acts 1969, c.101, s.5; Acts 1974, P.L.109, SEC.7. As amended by P.L.28-1988, SEC.62; P.L.99-2007, SEC.185; P.L.275-2013, SEC.18; P.L.139-2020, SEC.7.