Appeals court OKs permits for Upper Peninsula mine
Headline Legal News
The Michigan Court of Appeals has upheld a decision by state environmental regulators to allow construction of a nickel and copper mine in the Upper Peninsula.
A three-judge panel unanimously sided with the Department of Environmental Quality, which issued mining and groundwater discharge permits to Kennecott Eagle Minerals Co. The Marquette County mine is now owned by Lundin Mining Corp.
DEQ officials approved a mining permit for the project in 2007, drawing legal challenges from environmentalists and the Keweenaw Bay Indian Community. A DEQ administrative law judge and a circuit court judge affirmed the department's decisions, and opponents took the case to the Court of Appeals.
The mine has been constructed and is scheduled to begin producing minerals this fall.
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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.