(a) If an injured covered individual is entitled by law to seek a recovery from the third-party tortfeasor for benefits paid or provided by a subrogee as described by § 140.004, then all payors are entitled to recover as provided by Subsection (b) or (c).
(b) This subsection applies when a covered individual is not represented by an attorney in obtaining a recovery. All payors’ share under Subsection (a) of a covered individual’s recovery is an amount that is equal to the lesser of:
(1) one-half of the covered individual’s gross recovery; or
(2) the total cost of benefits paid, provided, or assumed by the payor as a direct result of the tortious conduct of the third party.

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Terms Used In Texas Civil Practice and Remedies Code 140.005

  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.

(c) This subsection applies when a covered individual is represented by an attorney in obtaining a recovery. All payors’ share under Subsection (a) of a covered individual’s recovery is an amount that is equal to the lesser of:
(1) one-half of the covered individual’s gross recovery less attorney’s fees and procurement costs as provided by § 140.007; or
(2) the total cost of benefits paid, provided, or assumed by the payor as a direct result of the tortious conduct of the third party less attorney’s fees and procurement costs as provided by § 140.007.
(d) A common law doctrine that requires an injured party to be made whole before a subrogee makes a recovery does not apply to the recovery of a payor under this section.