Court orders mediation in Maryland desegregation case
National Legal News
A federal appeals court has ordered a fourth attempt at mediation in a long-running dispute over the state of Maryland’s treatment of its historically black colleges.
The black colleges say the state has underfunded them while developing programs at traditionally white schools that directly compete with them and drain prospective students away.
In 2013, a judge found that the state had maintained an unconstitutional “dual and segregated education system.” The judge said the state allowed traditionally white schools to replicate programs at historically black institutions, thereby undermining the success of the black schools.
Despite three previous tries at mediation, the two sides have been unable to agree on a solution.
On Wednesday, a three-judge panel of the 4th U.S. Circuit Court of Appeals ordered Maryland’s higher education commission and the coalition to begin mediation again to try to settle the 12-year-old lawsuit.
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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.