Lawyers ask for more time to redefine practice of law
Bar Associations
Hawaii attorneys have asked the state Supreme Court to give them more time to develop proposed rules that will define the practice of law.
The Hawaii State Bar Association asked the court for an extension until March 28 to fine-tune its earlier proposal to change the court's rules. Only licensed attorneys can practice law in Hawaii, but what constitutes the practice of law is not clearly defined.
The association now is working with real estate professionals and certified public accountants, two of the professional groups that potentially would be affected by the rule change.
The debate started months ago when lawyers suggested clarifying the rules that define the practice of law. But critics said the suggested definition was too broad and would potentially bump into other professions such as insurance, real estate, accounting, paralegals and legal document service providers.
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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.