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California Labor Code Section 3860

Legal Research Home > California Laws > Labor Code > California Labor Code Section 3860

3860.  (a) No release or settlement under this chapter, with or
without suit, is valid or binding as to any party thereto without
notice to both the employer and the employee, with opportunity to the
employer to recover the amount of compensation he has paid or become
obligated to pay and any special damages to which he may be entitled
under Section 3852, and opportunity to the employee to recover all
damages he has suffered and with provision for determination of
expenses and attorney's fees as herein provided.
   (b) Except as provided in Section 3859, the entire amount of such
settlement, with or without suit, is subject to the employer's full
claim for reimbursement for compensation he has paid or become
obligated to pay and any special damages to which he may be entitled
under Section 3852, together with expenses and attorney fees, if any,
subject to the limitations in this section set forth.
   (c) Where settlement is effected, with or without suit, solely
through the efforts of the employee's attorney, then prior to the
reimbursement of the employer, as provided in subdivision (b) hereof,
there shall be deducted from the amount of the settlement the
reasonable expenses incurred in effecting such settlement, including
costs of suit, if any, together with a reasonable attorney's fee to
be paid to the employee's attorney, for his services in securing and
effecting settlement for the benefit of both the employer and the
employee.
   (d) Where settlement is effected, with or without suit, solely
through the efforts of the employer's attorney, then, prior to the
reimbursement of the employer as provided in subdivision (b) hereof,
there shall be deducted from the amount of the settlement the
reasonable expenses incurred in effecting such settlement, including
costs of suit, if any, together with a reasonable attorney's fee to
be paid to the employer's attorney, for his services in securing and
effecting settlement for the benefit of both the employer and the
employee.
   (e) Where both the employer and the employee are represented by
the same agreed attorney or by separate attorneys in effecting a
settlement, with or without suit, prior to reimbursement of the
employer, as provided in subdivision (b) hereof, there shall be
deducted from the amount of the settlement the reasonable expenses
incurred by both the employer and the employee or on behalf of
either, including costs of suit, if any, together with reasonable
attorneys' fees to be paid to the respective attorneys for the
employer and the employee, based upon the respective services
rendered in securing and effecting settlement for the benefit of the
party represented. In the event both parties are represented by the
same attorney, by agreement, the attorney's fee shall be based on the
services rendered for the benefit of both.
   (f) The amount of expenses and attorneys' fees referred to in this
section shall, on settlement of suit, or on any settlement requiring
court approval, be set by the court. In all other cases these
amounts shall be set by the appeals board. Where the employer and the
employee are represented by separate attorneys they may propose to
the court or the appeals board, for consideration and determination,
the amount and division of such expenses and fees.


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Last modified: March 17, 2014