California, United States of America
The following excerpt is from Kuhlmann v. Pascal & Ludwig, 5 Cal.App.3d 144, 85 Cal.Rptr. 199 (Cal. App. 1970):
Sections 3850 et seq., of the Labor Code provide a scheme for the adjustment of the respective interests of an employee and an employer (or the latter's insurer) in a recovery in tort from a third party. Where, as in the case at bench, the employee initiates the action against the third party, the employer has three choices: (1) it may allow that action to proceed, in the sole name of and under the exclusive control of, the employee, and claim a lien on any judgment for the amount of its compensation payments; (2) it may initiate its own action against the tort feasor and thereafter cause that action to be consolidated with the action brought by the employee; or (3) it may (as it did here) intervene in the action, thus becoming a party to the suit. (Witt v. Jackson (1961) 57 Cal.2d 57, 69, 17 Cal.Rptr. 369, 366 P.2d 641.)
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