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Case Citations [i] (Spring 2026)

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                            THE AMERI CAN


                              LAW INSTITUTE



                                    Spring 2026 Citations



                                    SECURITY



                                DIVISION   II. SURETYSHIP

                          CHAPTER 5. SURETY AND CREDITOR

§ 141. Subrogation

Kan.App.2025.  Cit. in sup. Employee who reached a settlement with employer and its workers
compensation insurer in connection with a back injury, and then settled a separate third-party medical-
malpractice claim related to damages from a delayed cauda equina syndrome diagnosis, filed a post-
award application for workers compensation benefits related to his work injury. The workers
compensation board found that, under Kansas law, insurer had a subrogation lien against employee's
entire third-party medical-malpractice settlement. This court reversed and remanded, holding that the
relevant Kansas statute only permitted an employer to obtain a subrogation lien on a claimant's third-
party recovery to the extent that the recovery duplicated an award paid or owed by the employer under
the Worker's Compensation Act. The court cited Restatement of Security § 141 in explaining that,
because an essential element of subrogation was avoiding two parties paying for the same injury, an
employer's obligation for workers compensation benefits could not be reduced by amounts the
employee received for other unrelated injuries or conditions. Rumbaugh v. DirecTV, 564 P.3d 17, 26.















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