High court won't hear California's prison appeal

Headline Legal News


The U.S. Supreme Court on Monday let stand a lower court ruling that California bears responsibility for nearly 2,000 disabled parolees housed in county jails.

The decision could leave state taxpayers liable for problems at some of the jails, said Jeffrey Callison, a spokesman for the California Department of Corrections and Rehabilitation.

The high court did not comment as it declined to consider Gov. Jerry Brown's appeal of a January 2012 decision by U.S. District Judge Claudia Wilken in Oakland.

She ruled that state prison officials failed to monitor and protect former inmates who were returned to county jails instead of state prisons for parole violations under a now 3-year-old state law.

That law keeps most parole violators and lower-level offenders in county jails instead of state prisons in response to federal court orders requiring the state to reduce the prison population.

The ruling in the parolee case was upheld last year by the 9th U.S. Circuit Court of Appeals, despite objections by the state.

"We believe that the lower court impinged upon a state's right to delegate responsibilities to local governments," Callison said.

The state penal code says parole violators in county jails are under counties' jurisdiction, he said, but "the federal court decided that didn't matter, that they were still ultimately state parolees."

That could make the state financially responsible for providing jailed parolees with the accommodations to which they are entitled under the federal Americans with Disabilities Act, he said.

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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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