Court: Cities can't prosecute people for sleeping on streets

Law Journals

Cities can't prosecute people for sleeping on the streets if they have nowhere else to go because it amounts to cruel and unusual punishment, which is unconstitutional, a federal appeals court said Tuesday.

The 9th U.S. Circuit Court of Appeals sided with six homeless people from Boise, Idaho, who sued the city in 2009 over a local ordinance that banned sleeping in public spaces. The ruling could affect several other cities across the U.S. West that have similar laws.

It comes as many places across the West Coast are struggling with homelessness brought on by rising housing costs and income inequality.
 
When the Boise lawsuit was filed, attorneys for the homeless residents said as many as 4,500 people didn't have a place to sleep in Idaho's capital city and homeless shelters only had about 700 available beds or mats. The case bounced back and forth in the courts for years, and Boise modified its rules in 2014 to say homeless people couldn't be prosecuted for sleeping outside when shelters were full.

But that didn't solve the problem, the attorneys said, because Boise's shelters limit the number of days that homeless residents can stay. Two of the city's three shelters also require some form of religious participation for some programs, making those shelters unsuitable for people with different beliefs, the homeless residents said.

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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.