Top Arizona court rules frozen embryos in breakup must be donated

U.S. Court News

The Arizona Supreme Court released a decision Thursday in a case that determined if a woman can use her frozen embryos to have a baby even if her ex-husband disagrees.

A trial court had ruled against Torres, saying the contract she and her then-boyfriend had signed in 2014 clearly said both parties must agree to implantation in the event of a separation or divorce. Torres had an aggressive cancer and wanted to preserve her ability to have children after treatment.

The state Court of Appeals overturned that ruling in a 2-1 decision last March. The court held that the contract was unclear and that Torres’ interests in having a child outweighed John Terrell’s interest in not becoming a father who could be forced to pay child support.

The Arizona Legislature changed the law in 2018 in response to Torres’ case. The law now allows a former spouse to use the embryos against their former partner’s wishes, but relieves the ex-spouse of parental responsibilities like child support.

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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.