Missouri court gives jolt of life to long Midwest power line

Law Journals

A proposal for a high-voltage power line carrying wind energy across the Midwest received a jolt of new life Tuesday as the Missouri Supreme Court ruled that state regulators had wrongly rejected it.

The ruling is a major victory in the quest by Clean Line Energy Partners to build one of the nation's longest electric transmission lines. The $2.3 billion project would carry power harnessed from the wind-whipped plains of western Kansas on a 780-mile (1,255 kilometer) trek across Missouri and Illinois before hooking into an electric grid in Indiana that serves the eastern U.S.

"The project has been on standby while we awaited the Missouri Supreme Court decision," Clean Line President Michael Skelly said. "Now with this decision, we can get back after it."

Missouri had been the lone state blocking the project. But during Missouri's protracted regulatory and legal battle, an Illinois appeals court in March also overturned that state's approval.

Skelly said the Houston-based renewable energy firm still has a clear path toward winning Illinois approval by first acquiring ownership of some utility property and then reapplying.

Attorney Paul Agathan, who represents more than 1,000 members of the Missouri Landowners Alliance, said his clients would continue fighting the power line before state regulators and county commissioners, who still would eventually have to sign off on permits for the power line to cross roads.

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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.