33 U.S.C. § 933 — Compensation for injuries where third persons are liable

(a) Election of remedies. If a disability or death is compensable under this chapter and the person entitled to compensation believes someone other than the employer or a fellow employee is liable for damages, the person need not choose between compensation and damages from that third person. (b) Accepting compensation under an award in an order filed by a deputy commissioner, administrative-law judge, or the Board assigns the claimant’s rights against the third person to the employer unless the claimant sues within six months after accepting compensation. If the employer does not sue within 90 days after the assignment, the right returns to the claimant. Here, “award” means a formal order by one of those officials or the Board. (c) Paying compensation into the section 944 fund assigns to the employer the deceased person’s legal representative’s rights against the third person. (d) The employer may sue or settle with the third person. (e) From a recovery, the employer keeps litigation or settlement expenses, including a reasonable attorney fee set by the deputy commissioner or Board; benefits already furnished under section 907; compensation already paid; and the present value of future compensation and future section 907 benefits. The future amounts must be calculated under the Secretary’s schedule or estimated by the deputy commissioner and held as a trust fund to pay them when due. Any remaining amount goes to the claimant or representative. (f) If the claimant sues within subsection (b)’s period, the employer must pay compensation equal to the Secretary’s amount for the injury or death minus the net recovery from the third person. Net recovery is the actual recovery minus reasonable litigation expenses and attorney fees. (g)(1) If the claimant or representative settles for less than the chapter’s compensation, the employer owes compensation under (f) only if the employer and carrier give written approval before the settlement and the claimant or representative also approves. The approval must use the Secretary’s form and be filed with the deputy commissioner within 30 days. (2) Without the required approval and filing, or if the employee fails to tell the employer about a third-party settlement or judgment, all compensation and medical-benefit rights end, even if the employer or insurer paid or acknowledged benefits. (3) Payments from the section 944 special fund are a lien on settlement or judgment proceeds, enforceable even without the Secretary’s agreement or actual notice. (4) Payments from a section 917 trust fund are a lien on the proceeds of a settlement obtained from, or a judgment recorded against, the third person. This lien has priority over the special-fund lien under paragraph (3). (h) If an insurer has assumed compensation payments, it is subrogated to the employer’s rights under this section. (i) Compensation or benefits under this chapter are the employee’s exclusive remedy for injury, or the eligible survivors’ or representatives’ exclusive remedy for death, caused by the negligence or wrong of another person in the same employment. This does not affect the liability of a person who is not the employer’s officer or employee.