10.707—What must a FECA beneficiary who is required to take action against a third party do to satisfy the requirement that the claim be “prosecuted”?
At a minimum, a FECA beneficiary must do the following:
(a)
Seek damages for the injury or death from the third party, either through an attorney or on his or her own behalf;
(b)
Either initiate a lawsuit within the appropriate statute of limitations period or obtain a written release of this obligation from OWCP or SOL unless recovery is possible through a negotiated settlement prior to filing suit;
(c)
Refuse to settle or dismiss the case for any amount less than the amount necessary to repay OWCP's refundable disbursements, as defined in § 10.714, without receiving permission from OWCP or SOL;
(d)
Provide periodic status updates and other relevant information in response to requests from OWCP or SOL;
(e)
Submit detailed information about the amount recovered and the costs of the suit on a “Statement of Recovery” form approved by OWCP; and