Appeals court sides with newspaper in labor fight

Headline Legal News

A federal appeals court on Tuesday sided with the publisher of the Santa Barbara News-Press in a long-running labor dispute between the newspaper and reporters who were fired after they complained about its editorial practices.

The U.S. Court of Appeals for the D.C. Circuit ruled that the newspaper's publisher was protected by the First Amendment when it dismissed eight reporters and disciplined others who claimed the owner was interfering with news coverage.

The reporters claimed they were illegally fired for union activity and legitimate complaints about their terms of employment. But the court found the dispute was all about editorial control.

"The First Amendment affords a publisher — not a reporter — absolute authority to shape a newspaper's content," Judge Stephen Williams wrote for a three-judge panel.

The ruling stems from a dispute between Ampersand Publishing LLC and employees that began in 2006. Nearly every top editor at the paper quit in protest over what they said was owner Wendy McCaw's meddling in news coverage.

Newsroom employees later voted to form a union, and they have been fighting with the newspaper since then over bargaining rights.

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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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