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H. B. No. 1017 *HR43/R668* ~ OFFICIAL ~ G1/2
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To: Judiciary A; Business
and Commerce
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Tullos
HOUSE BILL NO. 1017
AN ACT TO AMEND SECTION 71-3-71, MISSISSIPPI CODE OF 1972, TO 1
PROVIDE THAT AN EMPLOYER OR INSURER SHALL NOT BE REQUIRED TO 2
INTERVENE IN ANY ACTION AGAINST ANY OTHER PARTY AT LAW RESPONSIBLE 3
FOR THE INJURY OR DEATH OF AN EMPLOYEE, BUT IF THE EMPLOYER OR 4
INSURER FAILS TO JOIN, THEY SHALL NOT BE ENTITLED TO ANY REPAYMENT 5
OF THE AMOUNT THEY PAID AS COMPENSATION AND EXPENSES; TO PROVIDE 6
THAT IF AN EMPLOYER IS FOUND TO BE NEGLIGENT, THE SUBROGATION LIEN 7
SHALL BE REDUCED BY THE PERCENTAGE OF THE FAULT OF THE EMPLOYER; 8
TO AMEND SECTION 85-5-7, MISSISSIPPI CODE OF 1972, TO CONFORM TO 9
THE PRECEDING SECTION; AND FOR RELATED PURPOSES. 10
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 11
SECTION 1. Section 71-3-71, Mississippi Code of 1972, is 12
amended as follows: 13
71-3-71. The acceptance of compensation benefits from or the 14
making of a claim for compensation against an employer or insurer 15
for the injury or death of an employee shall not affect the right 16
of the employee or his dependents to sue any other party at law 17
for such injury or death, but the employer or his insurer shall be 18
entitled to reasonable notice and opportunity to join in any such 19
action or may intervene therein. * * * An employer or insurer may 20
join in such action * * *; however, if such employer or insurer 21
does not join in such action, they shall not be entitled to 22
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repayment of the amount paid by them as compensation and medical 23
expenses from the net proceeds of such action (after deducting the 24
reasonable costs of collection) as hereinafter provided. If an 25
employer is found to be negligent, the subrogation lien shall be 26
reduced by the percentage of the fault of the employer. 27
The commencement of an action by an employee or his 28
dependents (or legal representative) against a third party for 29
damages by reason of the injury, or the adjustment of any such 30
claim, shall not affect the right of the injured employee or his 31
dependents (or legal representative) to recover compensation, but 32
any amount recovered by the injured employee or his dependents (or 33
legal representative) from a third party shall be applied as 34
follows: reasonable costs of collection as approved and allowed 35
by the court in which such action is pending, or by the commission 36
of this state in case of settlement without suit, shall be 37
deducted; the remainder, or so much thereof as is necessary, shall 38
be used to discharge the legal liability of the employer or 39
insurer; and any excess shall belong to the injured employee or 40
his dependents. The employee or his dependents bringing suit 41
against the third party must notify the employer or carrier within 42
fifteen (15) days of the filing of such suit. 43
An employer or compensation insurer who shall have paid 44
compensation benefits under this chapter for the injury or death 45
of the employee shall have the right to maintain an action at law 46
against any other party responsible for such injury or death, in 47
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the name of such injured employee or his beneficiaries, or in the 48
name of such employer or insurer, or any or all of them. If 49
reasonable notice and opportunity to be represented in such action 50
by counsel shall have been given to the compensation beneficiary, 51
all claims of such compensation beneficiary shall be determined in 52
such action, as well as the claim of the employer or insurer. If 53
recovery shall be had against such other party, by suit or 54
otherwise, the compensation beneficiary shall be entitled to any 55
amount recovered over and above the amount that the employer and 56
insurer shall have paid or are liable for in compensation or other 57
benefits, after deducting the reasonable costs of collection; 58
however, if an employer is found to be negligent, the subrogation 59
lien shall be reduced by the percentage of the fault of the 60
employer. 61
In case of settlement of any action before the trial thereof, 62
such settlement shall be subject to the approval of the court 63
wherein such action is pending, and settlement before an action is 64
brought shall be subject to the approval of the commission. 65
Distribution of the portion belonging to the dependents shall be 66
made among such dependents in the manner provided in this chapter. 67
In case of liability of the employer or insurer to make 68
payment to the State Treasury under the Second Injury Fund 69
provisions, if the injury or death creates a legal liability 70
against a third party, the employer or insurer shall have a right 71
of action against such third party for reimbursement of any sum so 72
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paid into the State Treasury, which right may be enforced in the 73
action heretofore provided or by an independent action. 74
SECTION 2. Section 85-5-7, Mississippi Code of 1972, is 75
amended as follows: 76
85-5-7. (1) As used in this section, "fault" means an act 77
or omission of a person which is a proximate cause of injury or 78
death to another person or persons, damages to property, tangible 79
or intangible, or economic injury, including, but not limited to, 80
negligence, malpractice, strict liability, absolute liability or 81
failure to warn. Except as otherwise provided in this subsection 82
(1), "fault" shall not include any tort which results from an act 83
or omission committed with a specific wrongful intent. For any 84
premises-liability action, as defined under Section 11-1-66.1(7), 85
alleging injury as a result of the willful, wanton or intentional 86
tortious conduct of a third party on commercial or other real 87
property in the State of Mississippi, "fault" shall include any 88
tort which results from an act or omission committed with a 89
specific wrongful intent. 90
(2) Except as otherwise provided in subsection (4) of this 91
section, in any civil action based on fault, the liability for 92
damages caused by two (2) or more persons shall be several only, 93
and not joint and several and a joint tortfeasor shall be liable 94
only for the amount of damages allocated to him in direct 95
proportion to his percentage of fault. In assessing percentages 96
of fault an employer and the employer's employee or a principal 97
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and the principal's agent shall be considered as one (1) defendant 98
when the liability of such employer or principal has been caused 99
by the wrongful or negligent act or omission of the employee or 100
agent. 101
(3) Nothing in this section shall eliminate or diminish any 102
defenses or immunities which currently exist, except as expressly 103
noted herein. 104
(4) Except as otherwise provided in Section 71-3-71, joint 105
and several liability shall be imposed on all who consciously and 106
deliberately pursue a common plan or design to commit a tortious 107
act, or actively take part in it. Except as otherwise provided in 108
Section 71-3-71, any person held jointly and severally liable 109
under this section shall have a right of contribution from his 110
fellow defendants acting in concert. 111
(5) In actions involving joint tortfeasors, the trier of 112
fact shall determine the percentage of fault for each party 113
alleged to be at fault without regard to whether the joint 114
tortfeasor is immune from damages. Fault allocated under this 115
subsection to an immune tortfeasor or a tortfeasor whose liability 116
is limited by law shall not be reallocated to any other 117
tortfeasor; however, the subrogation lien shall be reduced by the 118
percentage of an immune employer's negligence, as provided in 119
Section 71-3-71. 120
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ST: Allocation of fault; revise certain
provisions concerning workers' compensation that
relates to.
(6) Nothing in this section shall be construed to create a 121
cause of action. Nothing in this section shall be construed, in 122
any way, to alter the immunity of any person. 123
SECTION 3. This act shall take effect and be in force from 124
and after July 1, 2026. 125