Appeals court overturns key Cape Wind clearance

Headline Legal News

A federal appeals court has rejected the Federal Aviation Administration's ruling that the Cape Wind project's turbines present "no hazard" to aviation, overturning a vital clearance for the nation's first offshore wind farm.

A decision Friday from the U.S. Court of Appeals for the District of Columbia said the FAA didn't adequately determine whether the planned 130 turbines, each 440 feet tall, would pose a danger to pilots flying by visual flight rules.

The court ordered the "no hazard" determinations vacated and remanded back to the FAA.

It also ruled that if the FAA found the project posed aviation risks, the U.S. Interior Department would likely revoke or modify the lease granted Cape Wind — the first granted to a U.S. offshore wind project.

The decision signals further delays for the project, which has struggled to find financing.

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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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