If an injury or death for which compensation is payable under this subchapter is caused under circumstances creating a legal liability in a person other than the United States to pay damages, and a beneficiary entitled to compensation from the United States for that injury or death receives money or other property in satisfaction of that liability as the result of suit or settlement by him or in his behalf, the beneficiary, after deducting therefrom the costs of suit and a reasonable attorney’s fee, shall refund to the United States the amount of compensation paid by the United States and credit any surplus on future payments of compensation payable to him for the same injury. No court, insurer, attorney, or other person shall pay or distribute to the beneficiary or his designee the proceeds of such suit or settlement without first satisfying or assuring satisfaction of the interest of the United States. The amount refunded to the United States shall be credited to the Employees’ Compensation Fund. If compensation has not been paid to the beneficiary, he shall credit the money or property on compensation payable to him by the United States for the same injury. However, the beneficiary is entitled to retain, as a minimum, at least one-fifth of the net amount of the money or other property remaining after the expenses of a suit or settlement have been deducted; and in addition to this minimum and at the time of distribution, an amount equivalent to a reasonable attorney’s fee proportionate to the refund to the United States.
Standard changes are made to conform with the definitions applicable and the style of this title as outlined in the preface to the report.
Section of title 5
Source (U.S. Code)
Source (Statutes at Large)
5 App.: 777(b) (proviso).
July 4, 1966, Pub. L. 89–488, § 10(b), 80 Stat. 255.
The words “However, * * * is entitled to retain * * * plus” are substituted for “Provided, That * * * shall have the right to retain * * * and, in addition, to retain”.
1974—Pub. L. 93–416made minor changes in phraseology and inserted provision prohibiting a court, etc., from distributing proceeds of suit or settlement without satisfying or assuring satisfaction of the interests of the United States.
Effective Date of 1974 Amendment
Amendment by Pub. L. 93–416effective Sept. 7, 1974, and applicable to any injury or death occurring on or after Sept. 7, 1974, see section 28(a) ofPub. L. 93–416, set out as a note under section
8101 of this title.
Personnel Not Affected by 1967 Increase
Increases authorized under amendment by Pub. L. 90–83not applicable to specified personnel, see section 7 ofPub. L. 90–83, set out as a note under section
8103 of this title.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.