Arizona court vacates $75 million cash-only bond

Headline Legal News

An Arizona appeals court has vacated what was perhaps one of the highest bail amounts on record in U.S. history that had been set for a father accused of sexually abusing his children.

The brief order issued last week sends the case back to Yavapai County Superior Court Judge Tina Ainley to reset the $75 million cash-only bond for the longtime Sedona resident. She has scheduled a Monday status conference.

The defendant's attorney, Bruce Griffen, sought relief from the appellate court after he tried unsuccessfully to have the case assigned to another trial court judge.

Griffen accused Ainley of abusing her discretion, and exhibiting bias and prejudice.

Prosecutors say those accusations were not proven. They contend the defendant has significant family ties in Brazil and is a flight risk.

The appellate court said Ainley cannot set a bail amount greater than what is necessary to ensure the defendant appears at trial, and can set other release conditions. The court is expected to elaborate on its decision but had not done so as of Friday.

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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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