SC high court overturns $11M defamation verdicts
Headline Legal News
South Carolina's high court has overturned $11 million in verdicts against a Charleston attorney accused of defaming a businessman by comparing him to television mobster Tony Soprano.
The state Supreme Court this week sent a civil case against Paul Hulsey back to Circuit Court, according to a report from The Post and Courier of Charleston.
Hulsey was sued several years ago by Charleston businessmen Lawton Limehouse Sr.
The attorney had previously sued Limehouse's company on behalf of day laborers, claiming staffing agency L&L Services made fake green cards and Social Security cards, exploited workers and failed to pay overtime.
"This is a blatant case of indentured servitude," Hulsey told the newspaper in 2004. "L&L Services took advantage of the complexity of the system. They have created a perfect racketeering system, just like Tony Soprano."
Authorities looked into Hulsey's allegations but didn't bring charges. The lawsuit was ultimately settled for $20,000, according to the high 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.