High court gives mixed verdict on Burgum-Legislature spat
Headline Legal News
North Dakota's Supreme Court on Monday rejected several of Gov. Doug Burgum's vetoes but sided with the governor in other portions of a dispute with the Legislature that revolved around overreach on both sides.
The high court ruled that Burgum was out of line in four out of five line-item vetoes that the Legislature had challenged. In the vetoes — which included appropriations for the State Water Commission and for information technology spending, among others — the Supreme Court said Burgum had gone too far with vetoes that would have changed legislators' intent.
The Supreme Court sided with Burgum's challenge that lawmakers had improperly delegated authority to a subset of legislators — known as the Budget Section — for how some $299 million for the Water Commission could be shifted among several identified needs.
Burgum made the same successful argument for the Legislature's attempt to have the budget section direct where half of $3.6 million appropriated for information technology would be spent.
"Convenience is no substitute for the mandatory legislative process," Judge Jerod Tufte wrote. He said the Legislature encroached on the executive branch by giving a committee of its members the power to administer appropriations.
Burgum had earlier conceded most of the vetoes would fail. He said in a statement late Monday he was pleased with the court's ruling.
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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.