BP expected to pay Florida $20M for seafood inspections
Headline Legal News
Florida Agriculture Commissioner Charles Bronson says BP will pay his department $10 million to strengthen its inspection operations to ensure that seafood taken from Gulf of Mexico waters is safe to eat.
Bronson said Monday another $10 million from BP will be used for advertising to help restore public confidence in the safety of Gulf seafood. BP will pay the $20 million over a three year period.
The agreement with the British-based oil giant also provides for a three-year extension if state or federal waters bordering on Florida are closed because of lingering contaminants from the April well explosion that sent millions of gallons of crude into the Gulf until it was capped four months later.
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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.