It started as just another routine warehouse shift. Then, your forklift unexpectedly malfunctions due to a faulty hydraulic system, severely crushing your leg underneath. Workers' compensation covers your medical bills and partial wages, but the manufacturer's defective equipment caused permanent disability that will affect you for decades.
Our South Carolina work injury lawyer explains when third-party liability claims are possible. They could mean the difference between basic coverage and comprehensive compensation for your workplace accident.
What Makes a Work Injury Case Involve Third-Party Liability?
Third-party liability emerges when someone other than your direct employer contributes to your workplace injury. South Carolina's exclusivity rule generally bars tort suits against your direct employer, while §42-1-560 preserves claims against liable third parties while still receiving workers' compensation benefits.
Subcontractors, equipment manufacturers, property owners, and other businesses operating in your workplace generally don't enjoy workers' compensation immunity unless they qualify as statutory employers.
Suppose an Anderson office manager slips on a freshly mopped floor during her lunch break. If the building's cleaning company failed to post warning signs, they could face liability separate from any workers' compensation claim against the accident victim’s employer.
Common Third Parties Who May Be Liable for Work Injuries
Several types of businesses and individuals can share responsibility for workplace accidents.
Equipment Manufacturers and Suppliers
Defective machinery represents one of the most common sources of third-party liability in workplace injuries. When manufacturing defects, design flaws, or inadequate safety warnings contribute to accidents, the equipment maker faces potential product liability claims.
Take Mark, a fictional construction worker whose safety harness fails during a routine building inspection. If the investigation reveals the harness manufacturer failed to meet industry safety standards, Mark could pursue a product liability claim against the manufacturer while receiving workers' compensation from his construction company.
Manufacturing defects differ from normal wear and tear. Courts distinguish between equipment that fails due to age or misuse versus products that contained dangerous flaws from the factory.
Subcontractors and Independent Contractors
Construction sites, manufacturing facilities, and office buildings frequently host multiple companies working simultaneously. When one contractor's negligence injures another company's employee, third-party liability claims become possible.
Imagine Jennifer, a hypothetical electrician employed by ABC Electric, working in a building where XYZ Plumbing is simultaneously installing pipes. If XYZ's employee accidentally punctures a gas line, causing an explosion that burns Jennifer, she could pursue claims against both the plumbing company and potentially the general contractor.
South Carolina follows the "statutory employer" doctrine, but the 2021 Supreme Court decision in Keene v. CNA Holdings, LLC narrowed this protection significantly. When an owner has legitimately outsourced work, contractor employees are generally not the owner's statutory employees, making tort claims more likely against the property owner or general contractor.
Property Owners and Premises Liability
Workplace injuries occurring on property owned by someone other than your employer can create premises liability claims. Property owners owe invitees a duty of reasonable care, including warning of latent hazards the owner knew or should have known about.
Consider Tom, a fictional delivery driver injured when he falls through rotted floorboards on a customer's loading dock. While Tom's employer would provide workers' compensation, the property owner who knew about the dangerous condition but failed to repair it could face a separate premises liability claim.
Motor Vehicle Accidents During Work
Work-related driving creates unique third-party liability opportunities because negligent drivers face personal injury claims regardless of the injured person's employment status. Workers' compensation covers initial medical expenses and lost wages, but third-party liability claims can address pain and suffering, full lost wages, and other damages not covered by workers' comp.
Picture Lisa, a hypothetical sales representative, rear-ended by a distracted driver while traveling between client meetings in Anderson. Lisa received workers' compensation from her employer, but she could also pursue a full personal injury claim against the at-fault driver's insurance company.
South Carolina's comparative negligence doctrine applies to third-party motor vehicle claims. Even if a worker contributed to the car accident through their own negligence, they can still recover damages reduced by their percentage of fault, so long as they are not more than 50% at fault.
How Third-Party Claims Differ From Workers' Compensation
The fundamental difference between workers' compensation and third-party liability lies in the scope of available damages and the burden of proof required. Workers' compensation operates as a no-fault system providing specific benefits regardless of who caused the accident.
Workers Comp vs. Third-Party Compensation Limits
Third-party claims require proving negligence, defective products, or other legal theories of liability. Successful third-party claims can provide compensation for pain and suffering, full lost wages without caps, future earning capacity, and punitive damages, all benefits not available through workers' compensation alone.
Workers' compensation typically covers two-thirds of lost wages up to state-mandated maximums, while third-party claims can recover full lost income and future earning capacity. For seriously injured workers facing permanent disabilities, this difference can amount to hundreds of thousands of dollars over a lifetime.
Waiting Periods and Timelines
The timing also differs significantly. Medical benefits through workers’ compensation are payable without a waiting period, while indemnity (cash wage-replacement) benefits have a 7-day waiting period and become retroactive to day one if disability lasts more than 14 days. Third-party cases often take months or years to resolve.
Subrogation Considerations
It's important to note that your employer or their insurance carrier typically holds a lien or subrogation right on third-party recoveries. The net recovery requires coordination between the claims.
Building Strong Third-Party Liability Cases
Successful third-party work injury claims require thorough investigation to identify all potentially responsible parties and document their specific contributions to the accident. Evidence preservation becomes critical immediately after workplace accidents.
Machinery should be secured before repairs, photographs taken of all relevant conditions, and witness statements obtained while memories remain fresh. Insurance companies and potentially liable parties often begin their own investigations within hours of serious accidents.
Working with experienced Anderson work injury attorneys ensures proper investigation and preservation of evidence, while workers' compensation benefits provide immediate financial support. Combining immediate workers' comp benefits and potential third-party recovery can provide comprehensive financial protection for seriously injured workers and their families.