Neb. Rev. Stat. » Chapter 48
Nebraska Revised Statutes

Neb. Rev. Stat. § 48-118.04 (2026)

Third-party claims; settlement; requirements

✓ current as of July 2026
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(1) A settlement of a third-party claim under the Nebraska Workers' Compensation Act is void unless:

(a) Such settlement is agreed upon in writing by the employee or his or her personal representative and the workers' compensation insurer of the employer, if there is one, and if there is no insurer, then by the employer; or

(b) In the absence of such agreement, the court before which the action is pending determines that the settlement offer is fair and reasonable considering liability, damages, and the ability of the third person and his or her liability insurance carrier to satisfy any judgment.

(2) If the employee or his or her personal representative or the employer or his or her workers' compensation insurer do not agree in writing upon distribution of the proceeds of any judgment or settlement, the court, upon application, shall order a fair and equitable distribution of the proceeds of any judgment or settlement.

Notes of Decisions
Cited in 9 cases (4 in the last 5 years), 2006–2026 · leading case: In re Est. of Evertson, 889 N.W.2d 73 (Neb. 2016).
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In re Est. of Evertson, 889 N.W.2d 73 (Neb. 2016). · cites it 11× “Under Neb. Rev. Stat. § 48-118.04 (Reissue 2010), district courts have exclu- sive subject matter jurisdiction over the fair and equitable distribution of proceeds subject to subrogation.”
Burns v. Nielsen, 732 N.W.2d 640 (Neb. 2007). · cites it 14× “The judgment of the court is reversed, and the cause is remanded with directions for the court to order a “fair and equitable distribution of the proceeds” of the settlement, consistent with the interpretation of § 48-118.”
Kroemer v. Omaha Track Equip., 296 Neb. 972 (Neb. 2017). · cites it 15× “A settlement of a third-party claim is void under Neb. Rev. Stat. §48-118.04 (1) (Reissue 2010) unless the settle- ment is either agreed upon in writing by the employee and employer or its insurer or determined by the court to be fair and reasonable.”
Turco v. Schuning, 716 N.W.2d 415 (Neb. 2006). · cites it 2× “We determine that the settlement of a third-party claim under Neb. Rev. Stat. § 48-118 (Reissue 2004) (now codified at Neb.”
In re Est. of Evertson (Neb. Ct. App. 2016). · cites it 9× “See Neb. Rev. Stat § 48-118.04 (Reissue 2010).”
Villegas v. Bridges, Inc. (Neb. Ct. App. 2026). · cites it 7× “Thereafter, this case was filed in the district court for Harlan County to determine the “fair and equitable division” of the remaining $100,000 in settlement proceeds between Jose’s estate and appellants’ subrogation interest for workers’ compensation benefits paid or to be…”
Vanicek v. Kratt (D. Neb. 2025). · cites it 6× “Similarly, Neb. Rev. Stat. § 48-118.04 (2) expressly provides for the court to “order a fair and equitable distribution of the proceeds of any judgment or settlement” if the employee (or his representative) or his employer does not agree in writing to the distribution of…”
Jessica Vanicek v. Lyman-Richey Corp. (8th Cir. 2025). · cites it 3× “(quoting Neb. Rev. Stat. § 48-118.04 (1)(b)). Sandair and Kratt admitted liability for Ryan’s death, so the district court’s analysis focused on the appropriate measure of damages and the defendants’ ability to satisfy any judgment.”
Vanicek v. Kratt (D. Neb. 2024). “This case was resolved when the Court compelled plaintiff Vanicek’s Estate to accept a settlement offer from defendants Sandair Corporation and Kenneth Kratt under Nebraska Revised Statute § 48-118.04, Filing 174, then distributed that settlement between Vanicek’s Estate and…”
— Neb. Rev. Stat. § 48-118.04(1) — 1 case
Kroemer v. Omaha Track Equip., 296 Neb. 972 (Neb. 2017). “A settlement of a third-party claim is void under Neb. Rev. Stat. §48-118.04 (1) (Reissue 2010) unless the settle- ment is either agreed upon in writing by the employee and employer or its insurer or determined by the court to be fair and reasonable.”
— Neb. Rev. Stat. § 48-118.04(1)(b) — 2 cases
Kroemer v. Omaha Track Equip., 296 Neb. 972 (Neb. 2017). “A settlement of a third-party claim is void under Neb. Rev. Stat. §48-118.04 (1) (Reissue 2010) unless the settle- ment is either agreed upon in writing by the employee and employer or its insurer or determined by the court to be fair and reasonable.”
Vanicek v. Kratt (D. Neb. 2025). “Similarly, Neb. Rev. Stat. § 48-118.04 (2) expressly provides for the court to “order a fair and equitable distribution of the proceeds of any judgment or settlement” if the employee (or his representative) or his employer does not agree in writing to the distribution of…”
— Neb. Rev. Stat. § 48-118.04(2) — 2 cases
In re Est. of Evertson, 889 N.W.2d 73 (Neb. 2016). “Under Neb. Rev. Stat. § 48-118.04 (Reissue 2010), district courts have exclu- sive subject matter jurisdiction over the fair and equitable distribution of proceeds subject to subrogation.”
Kroemer v. Omaha Track Equip., 296 Neb. 972 (Neb. 2017). “A settlement of a third-party claim is void under Neb. Rev. Stat. §48-118.04 (1) (Reissue 2010) unless the settle- ment is either agreed upon in writing by the employee and employer or its insurer or determined by the court to be fair and reasonable.”
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