McKINNON v. OTIS ELEVATOR COMPANY
When employer fails to adequately notify employee of its subrogation lawsuit and proposed settlement involving an alleged third party tortfeasor and fails to obtain employee's consent to settlement of that suit, and when alleged third party tortfeasor, prior to settlement, was or reasonably should have been aware of the possibility of employee's claim for damages against it, alleged third party tortfeasor cannot use settlement and dismissal of employer's subrogation action to bar employee from maintaining her own action for damages against it. Employee's action for damages against alleged tortfeasor must account for any workers' compensation benefits paid to employee, or to be paid, so as to preclude double recovery for employee and double liability for tortfeasor.
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