Court ruling could delay California water project

Continuing Education

A state appellate court has ruled that California water officials cannot go onto private property for soil testing and other studies related to construction of two massive tunnels that would siphon water from the Sacramento River.

Nancy Vogel of the state's Department of Water Resources said Friday that officials anticipated the ruling and work won't be delayed.

The decision handed down Thursday by the state's 3rd District Court of Appeal says an intrusion on private property without permission violates the California Constitution.

If built, the Bay Delta Conservation Plan — estimated to cost billions of dollars — would send fresh water around the Sacramento-San Joaquin Delta to Central and Southern California.

The ruling stems from a lawsuit filed against the state by more than 150 property owners in Sacramento, San Joaquin, Yolo, Solano and Contra Costa counties.

The three-judge panel ruled 2-1 in a 44-page decision with the majority opinion saying the state must adhere to eminent domain laws, which give property owners the right to a jury trial to determine a fair payment for taking away their land.

Acts such as testing soil, observing or trapping animals either by driving onto property, using boats or going on foot amount to "taking" and trigger the need for eminent domain proceedings, the majority opinion said.

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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.

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