THEODORE R. McKELDIN, GOVERNOR                     957

SECTION 1. Be it enacted by the General Assembly of Maryland,
That Section 59 of Article 101 of the Annotated Code of Maryland
(1951 Edition), title "Workmen's Compensation", sub-title "Miscel-
laneous", be and it is hereby repealed and re-enacted, with amend-
ments, to read as follows:

59. Where injury or death for which compensation is payable
under this Article was caused under circumstances creating a legal
liability in some person other than the employer to pay damages in
respect thereof, the employee, or in the case of death, his personal
representative or dependents as hereinbefore defined, may proceed
either by law against that other person to recover damages or against
the employer for compensation under this Article, or in case of joint
tortfeasors against both; and if compensation is claimed and
awarded or paid under this Article, any employer, if he is self-
insured, insurance company, association or the State Accident Fund,
may enforce for their benefit, as the case may be, liability of such
other person; provided, however, if damages are recovered in excess
of the compensation already paid or awarded to be paid under this
Article, and also any payments made for medical or surgical services,
funeral expenses or for any of the other purposes enumerated in
Section 49 of this Article, then any such excess shall be paid to the
injured employee, or in case of death to his dependents less the
expenses and costs of action incurred by the employer, insurance
company, association or State Accident Fund as the case may be.
If any such employer, insurance company, association or State Acci-
dent Fund shall not, within two months from the passage of the
award of this Commission, start proceedings to enforce the liability
of such other person, the injured employee, or in case of death, his
dependents, may enforce the liability of such other person, provided,
however, that if damages are recovered the injured employee or in
case of death his dependents may first retain therefrom the ex-
penses and costs of action incurred by the said employee or in case
of death his dependents, and the employer, insurance company, asso-
ciation or the State Accident Fund, as the case may be, shall be
reimbursed for the compensation already paid or awarded and any
amount or amounts paid for medical or surgical services, funeral
expenses or for any of the other purposes enumerated in Section
49 of this Article, except Court costs and counsel or attorney's fees,
which shall be paid by the injured employee and/or his dependents,
and the employer, insurance company, association or State Accident
Fund in the proportion that the amount received by each shall bear
to the whole amount paid in settlement of any claim or satisfaction
of any judgment obtained in the case, and the balance in excess of
these items shall inure to the injured employee, or in case of death,
to his dependents, and the amount thus received by the injured em-
ployee or in case of death by his dependents shall be in lieu of any
award that might otherwise have been made thereafter in the same
case under the provisions of this Article and said case shall there-
upon be deemed to have been finally settled and closed.

When any employee has a right of action under this section against
a third party, the period of limitations on such action, as to such
employee, shall not begin to run until two months after the first
award of compensation made to such employee under this Article,
and this Section shall apply to past and future rights of action
under this section.