Plain Text Law

Title 9. Workers' Compensation — Subtitle 9. Liability of Third Parties

Statutes in effect as of October 1, 2026.

Md. Code Ann., Lab. & Empl. § 9-901 (2026)
Title 9. Workers' Compensation
Subtitle 9. Liability of Third Parties

§ 9–901Copy Citation

When a person other than an employer is liable for the injury or death of a covered employee for which compensation is payable under this title, the covered employee or, in case of death, the personal representative or dependents of the covered employee may:
(1)
file a claim for compensation against the employer under this title; or
(2)
bring an action for damages against the person liable for the injury or death or, in case of joint tortfeasors, against each joint tortfeasor.
Md. Code Ann., Lab. & Empl. § 9-902 (2026)
Title 9. Workers' Compensation
Subtitle 9. Liability of Third Parties

§ 9–902Copy Citation

(a)
If a claim is filed and compensation is awarded or paid under this title, a self–insured employer, an insurer, the Subsequent Injury Fund, or the Uninsured Employers’ Fund may bring an action for damages against the third party who is liable for the injury or death of the covered employee.
(b)
If the self–insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers’ Fund recovers damages exceeding the amount of compensation paid or awarded and the amount of payments for medical services, funeral expenses, or any other purpose under Subtitle 6 of this title, the self–insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers’ Fund shall:
(1)
deduct from the excess amount its costs and expenses for the action; and
(2)
pay the balance of the excess amount to the covered employee or, in case of death, the dependents of the covered employee.
(c)
If the self–insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers’ Fund does not bring an action against the third party within 2 months after the Commission makes an award, the covered employee or, in case of death, the dependents of the covered employee may bring an action for damages against the third party.
(d)
The period of limitations for the right of action of a covered employee or the dependents of the covered employee against the third party does not begin to run until 2 months after the first award of compensation made to the covered employee or the dependents under this title.
(e)
If the covered employee or the dependents of the covered employee recover damages, the covered employee or dependents:
(1)
first, may deduct the costs and expenses of the covered employee or dependents for the action;
(2)
next, subject to subsection (g) of this section, shall reimburse the self–insured employer, insurer, Subsequent Injury Fund, or Uninsured Employers’ Fund for:
(i)
the compensation already paid or awarded; and
(ii)
any amounts paid for medical services, funeral expenses, or any other purpose under Subtitle 6 of this title; and
(3)
finally, may keep the balance of the damages recovered.
(f)
In an action brought by a covered employee or the dependents of the covered employee under subsection (c) of this section, the covered employee or the dependents of the covered employee, the self–insured employer, the insurer, the Subsequent Injury Fund, and the Uninsured Employers’ Fund shall pay court costs and attorney’s fees in the proportion that the amount received by each bears to the whole amount paid in settlement of any claim or satisfaction of any judgment obtained in the case.
(g)
In determining reimbursement under subsection (e)(2) of this section, if the self–insured employer, insurer, or Uninsured Employers’ Fund has not waived third–party reimbursement:
(1)
first, the self–insured employer, insurer, or Uninsured Employers’ Fund shall be reimbursed; and
(2)
next, the Subsequent Injury Fund shall be reimbursed.
Md. Code Ann., Lab. & Empl. § 9-903 (2026)
Title 9. Workers' Compensation
Subtitle 9. Liability of Third Parties

§ 9–903Copy Citation

(a)
Except as provided in subsection (b) of this section, if a covered employee or the dependents of a covered employee receive an amount in an action:
(1)
the amount is in place of any award that otherwise could be made under this title; and
(2)
the case is finally closed and settled.
(b)
If the amount of damages received by the covered employee or the dependents of the covered employee is less than the amount that the covered employee or dependents would otherwise be entitled to receive under this title, the covered employee or dependents may reopen the claim for compensation to recover the difference between:
(1)
the amount of damages received by the covered employee or dependents; and
(2)
the full amount of compensation that otherwise would be payable under this title.