Mexico's Supreme Court overturns state anti-corruption laws

Financial

Mexico's Supreme Court has ruled unconstitutional two state anti-corruption laws that outgoing governors passed in apparent attempts to shield themselves from investigation.

Many Mexicans were outraged when the governors of the states of Veracruz and Chihuahua pushed through the laws just months before they are to leave office giving them the power to name anti-corruption prosecutors.

The federal Attorney General's Office appealed the laws, arguing they violated new federal anti-corruption standards. It said the appeals were meant to show "there is no room for tailor-made local laws."

On Monday, the Supreme court agreed, saying neither law could stand.

There have been allegations of corruption in both Veracruz and Chihuahua, and many feared the now struck-down laws would have allowed the governors to control who would investigate them.


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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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