Congressional Dems take Trump to court over foreign favors

Law Journals

Congressional Dems take Trump to court over foreign favors

Lawyers representing nearly 200 Democrats in Congress plan to argue in federal court Thursday that President Donald Trump is violating the Constitution by accepting foreign state favors without first seeking congressional approval.

The case argues that the president has received foreign government favors, such as Chinese government trademarks for his companies, payments for hotel room stays and event space rentals by representatives of Saudi Arabia and Kuwait, and proceeds from Chinese or Emirati-linked government purchases of office space in Trump Tower.

Ethics experts say the constitutional emoluments clause was created by the Founding Fathers to ensure that government officials act with the interests of the American public in mind instead of their own pocketbooks. Since then, it has been applied to the lowest of government of officials up to the president without a court challenge.

"This argument on Thursday will essentially put to the test the proposition that no one is above the law, not even the president," said Sen. Richard Blumenthal, a Connecticut Democrat who is leading the effort. "He's thumbed his nose at the plain text and in doing so he's thumbed his nose at the American people."

Unlike prior presidents, Trump chose not to divest from his assets and he remains the owner of the Trump Organization, a sprawling business empire with 550 entities in more than 20 countries that include branded hotels, golf courses, licensing deals and other interests. His Washington, D.C., hotel just steps from the White House has become a magnet for foreign governments, including groups tied to Kuwait, Bahrain, Turkey, Malaysia and Saudi Arabia.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.