Kindt

The trial court denied Leola Kindt’s motion under Labor Code section 3856, to allocate from a workers’ compensation lien an amount for attorney fees and costs she incurred in obtaining the judgment from which the lien was satisfied. She appeals, arguing there was insufficient evidence to show the lienholder actively participated in the lawsuit resulting in the judgment. She is right; we reverse.

Kindt sustained an on-the-job injury in an elevator accident. She filed a workers’ compensation claim and received almost $20,000 in benefits. She also filed a third party personal injury lawsuit against Otis Elevator Company, the manufacturer of the elevator, and GT Partners/Heitman Properties, the owners and operators of the building where the accident occurred. The workers’ compensation insurance carrier for Kindt’s employer (Intervener), filed a complaint in intervention seeking to enforce its lien rights against any judgment obtained by Kindt for workers’ compensation benefits already paid.

One week before trial, Otis purchased Intervener’s lien rights for $11,500 and the complaint in intervention was dismissed. Also before trial, Kindt settled with GT Partners/Heitman…