Tex.
Civ. Practice & Remedies Code Section 140.005
Payors’ Recovery Limited
(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 Section 140.004 (Contractual Subrogation Rights Authorized), 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.(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 Section 140.007 (Attorney’s Fees in Recovery Action); 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 Section 140.007 (Attorney’s Fees in Recovery Action).(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.
Source:
Section 140.005 — Payors' Recovery Limited, https://statutes.capitol.texas.gov/Docs/CP/htm/CP.140.htm#140.005 (accessed Jun. 5, 2024).
