Judge Upholds $100M Verdict for Mattel
Headline Legal News
A federal judge upheld a $100 million jury verdict Monday for MattelInc. in a lengthy legal battle over rights to the Bratz doll, a rivalto Mattel's Barbie.
U.S. District Judge Stephen Larson also confirmed in his ruling lateMonday that the Bratz doll — marketed by MGA Entertainment Inc. since2001 — is Mattel property. He appointed a temporary federal receiver totake control of the Bratz brand and MGA's assets.
The receiver will decide who produces the doll and under what terms,but the order authorizes the receiver to maximize profits by "sellingBratz-branded dolls and other goods through appropriate channels oftrade and distribution."
Mattel attorneys have said in court that the company is willing andable to produce Bratz dolls once receivership issues are sorted.
MGA President Isaac Larian said his company will appeal the ruling.
Mattel sued MGA in 2004, alleging that Bratz designer Carter Bryantdeveloped the concept for the pouty-lipped doll while working forMattel.
After a four-year legal dispute, a jury last year awardedMattel $10 million for copyright infringement and $90 million forbreach of contract.
After the verdict, Mattel sought to block MGAfrom ever making the Bratz dolls, and Larson ordered the company inDecember to end its sales in early 2009.
MGA argued thatretailers would not order the toys unless the court could guaranteethey would remain in stores through most of this year. MGA got areprieve in January when Larson ruled that the dolls could remain instores for the rest of the year.
He left open the possibility that Mattel or a court-appointed receiver could ultimately market the dolls this year.
A hearing is scheduled for May 18 to discuss whether the receivership should be made permanent.
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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.