Arkansas candidate's political ties targeted in court race

U.S. Court News

The race for a seat on the Arkansas Supreme Court is technically nonpartisan, but the close ties of one of the two main candidates to the state Republican Party. Barbara Webb, chief administrative law judge for the Arkansas Workers Compensation Commission and the wife of the state Republican Party chairman, is running against Pulaski County Circuit Judge Morgan “Chip” Welch in the March 3 election.

Although both candidates have been promising to be independent voices if elected to the court, Welch has been making noise about Webb's appeals to Republicans and speeches to GOP gatherings around the state. She's had public support from top Republican leaders, including Sen. Tom Cotton and former White House Press Secretary Sarah Sanders, and one of Webb's campaign mailings features a photo of GOP Gov. Asa Hutchinson.

“It hadn't escaped my notice that party politics is the family business,” Welch said recently. “It is some concern to me. I noticed that she's pretty much talking to an echo chamber of one political party.”

Webb and Welch are running for the seat being vacated by retiring Justice Jo Hart, and whoever wins will be elected to an eight year term. The court has angered conservatives in recent years with rulings blocking part of the state's plan to execute eight inmates in quick succession in 2017 and disqualifying a GOP-backed 2018 ballot measure that sought to cap the amount of damages that could be awarded in lawsuits.

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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.