Short Answer

In North Carolina, the workers’ compensation carrier’s lien arises automatically by statute on any third‑party recovery. To get the number you need for closing, send a written request for an itemized lien (benefits paid to date and any reserved future payments) to the carrier or its subrogation vendor, then obtain the carrier’s written consent to your settlement or, if they won’t consent, ask a Superior Court judge to approve the settlement and set the lien. You must resolve this before disbursing settlement funds.

Understanding the Problem

You’re in North Carolina, you were hurt at work, and you received workers’ compensation benefits. Now you’re about to settle a personal injury claim against a third party and need the workers’ comp insurer to state its lien amount so you can repay what’s required from your settlement. How do you prompt the insurer to provide that lien figure and secure the consent you need to finish the settlement?

Apply the Law

North Carolina law gives the employer or its workers’ compensation insurer a statutory lien on your third‑party recovery. That lien covers compensation and medical benefits paid (and sometimes payable) because of your injury. You cannot finalize a third‑party settlement without the insurer’s written consent or a Superior Court order approving the settlement. The usual forum for disputes about consent or lien amount is the Superior Court where your third‑party case is filed (or a resident Superior Court judge if no case is filed). A standard distribution accounts for attorney’s fees/costs before reimbursing the lien, and a judge may reduce the lien in fairness under specific criteria.

Key Requirements

• Statutory lien exists: The comp carrier’s lien attaches by law to any third‑party recovery related to the same injury.
• Written consent or court order: You must obtain the carrier’s written consent to settle, or seek approval from a Superior Court judge.
• Itemized accounting: Request an itemized lien showing indemnity and medical paid, and any amounts reserved or to be paid.
• Proper distribution: Calculate and disclose fees/costs, the lien repayment (after appropriate fee/cost sharing), and the client’s net.
• Reporting to NCIC: File the Industrial Commission’s Statement of Third Party Recovery to document how funds were distributed.

What the Statutes Say

• North Carolina Gen. Stat. § 97-10.2 (Third‑party rights and liens) - Creates the comp lien, requires carrier consent or court approval to settle, provides distribution rules, and allows judicial reduction of the lien.
• NC Industrial Commission Form 14 (Statement of Third Party Recovery) - Official form to report third‑party settlement and distribution, including lien repayment.

Analysis

Apply the Rule to the Facts: Because you received North Carolina workers’ compensation benefits, the carrier holds a statutory lien on your third‑party settlement. Before you disburse, request an itemized lien from the carrier or its subrogation vendor and seek their written consent to your settlement. If they delay or disagree on amount, you can ask a Superior Court judge to approve the settlement and set or reduce the lien under the statute.

Process & Timing

1. Who files: Injured worker’s attorney. Where: First, to the comp carrier/subrogation vendor; if needed, the Superior Court in the North Carolina county where the third‑party case is filed (or a resident Superior Court judge). What: (a) Written lien request with claim number, injury date, HIPAA authorization, and settlement context; (b) If needed, a motion for approval of settlement and determination/reduction of lien under § 97‑10.2; (c) NCIC Form 14 to report distribution. When: Before finalizing or disbursing settlement funds; court timing varies by county.
2. Follow up on the lien letter within 10–20 business days if no response; escalate to a supervisor or subrogation counsel. If consent is withheld or the lien is disputed, notice and schedule a motion before the Superior Court; many judges resolve these on briefs or brief hearings.
3. After consent letter or court order, disburse per the approved distribution and file the Industrial Commission Form 14 documenting fees, costs, lien repayment, and net to client. Keep all approvals and accountings in your closing file.

Exceptions & Pitfalls

• Settling without carrier consent or a court order can delay payment and expose you to repayment disputes.
• Do not omit the carrier’s pro‑rata share of fees and costs when calculating the lien; the statute accounts for this.
• Confirm whether the lien includes future or suspended benefits; address those in the consent or court order to avoid surprises.
• If Medicare/Medicaid also paid for care, coordinate those recoveries separately; different rules and agencies apply.
• Serve the carrier or its subrogation vendor properly before any court hearing to avoid continuances.

Talk to a Personal Injury Attorney

If you're finalizing a third‑party settlement and need to navigate a North Carolina workers’ comp lien, our firm can help you secure consent, structure distribution, and, if needed, seek court approval. Call us today to discuss your options and timelines.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.