Court: Legal status can't be used in civil cases

Headline Legal News

A person's legal status in the country can't be used in civil cases by attorneys to intimidate or coerce under a new rule approved by the Washington Supreme Court last week.

Since 2007, advocates have been working to make the change to the Rules of Professional conduct that attorneys licensed in the state must adhere to following. The lobbying began after members of the Latino/a Bar Association of Washington had seen attorneys and, in some cases, judges discuss a person's legal status in the country openly in court to intimidate.

"We thought it was unethical to do," said Lorena Gonzalez, who was president of the attorney association at the time. "We looked at the rules there was silence on the issue."

The rule does not affect criminal cases, but does cover civil matters, such as family disputes, personal injury claims, workplace cases, medical malpractice and other fields.


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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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