Plagued by delays, California high-speed rail heads back to court

Headline Legal News

California voters embraced the idea of building the nation's first real high-speed rail system, which promised to whisk travelers from San Francisco to Los Angeles in under three hours, a trip that can take six hours or more by car. Eight years after they approved funding for it, construction is years behind schedule and legal, financial and logistical delays plague the $68 billion project.

The bullet train's timeline, funding and speed estimates are back in the spotlight for a longstanding lawsuit filed by residents whose property lies in its path.

In the second phase of a court challenge filed in 2011, attorneys for a group of Central Valley farmers will argue in Sacramento County Superior Court on Thursday that the state can't keep the promises it made to voters in 2008 about the travel times and system cost. Voters authorized selling $9.9 billion in bonds for a project that was supposed to cost $40 billion.

In recent months, rail officials have touted construction of a viaduct in Madera County, the first visible sign of construction. Though officials have been working for years to acquire the thousands of parcels of land required for the project, they currently have just 63 percent of the parcels needed for the first 29 miles in the Central Valley.

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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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