Firm settles with W.Va. AG over mortgage case
Headline Legal News
A Texas law firm has reached an agreement with West Virginia Attorney General Darrell McGraw to resolve a case stemming from a national mortgage settlement.
Officials said Wednesday that Murray LLP has agreed to stop offering services in West Virginia to help homeowners receive benefits from a settlement between lenders and states.
Claim forms already were sent to more than 5,000 West Virginians who lost their homes to foreclosure eligible for payments under the settlement.
McGraw had sued the company earlier this month for allegedly charging fees to consumers for completing the claim form.
Officials say the company has agreed it would not represent or collect payments from West Virginia consumers in relation to the settlement.
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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.