The question routinely comes up of whether an employer may bring a lawsuit against a third party for injuries suffered by an employee as a result of a third party’s negligent act.
For example, an employee is injured in an automobile accident with a third party. The third party is at fault for the employee’s injuries. Due to his injuries, the employee is unable to resume his normal employment duties. The question arises: Can the employer bring a cause of action against the third party for loss of profits, loss of services or other economic loss due to the employee’s inability to work?
The great weight of authority and modern trends in several state courts, including Indiana, is that an employer or business may not recover against a third party for economic losses it suffered as a result of the third party’s tortious injury to its employee. Simply put, in Indiana and other trending states, an employer does not have a cause of action against a third party for loss of profits, loss of services or other economic loss due to the injured employee’s inability to work.
About the Author
John C. Havill, an attorney at Kahn, Dees, Donovan & Kahn, LLP (KDDK) in Evansville, Indiana, primarily practices as a civil litigator and defense trial attorney. He assists individuals, businesses, and governmental entities in claims pertaining to commercial law, contracts, insurance, employment law, real estate and municipal law.