Scandal-plagued former Bell official sues city
Headline Legal News
Public outrage — and changed locks — forced Robert Rizzo out of a job last year, but the former city manager says he's still owed his $1.5 million salary and benefits.
In a lawsuit against the city of Bell filed Monday, Rizzo claims he's owed his wages — with interest — because he hasn't been convicted of a felony and hasn't resigned his post.
According to prosecutors, Rizzo orchestrated a scheme to bilk the Los Angeles suburb out of more than $6 million by paying himself and other Bell city officials' exorbitant salaries. They face charges of fraud and misappropriation of public funds.
Rizzo has pleaded not guilty.
In the lawsuit he filed in Los Angeles Superior Court, Rizzo said he hasn't been paid since a public meeting in July 2010, when the small, blue-collar community of Bell learned of his outsized salary and benefits.
Protesters were outraged by compensation of $100,000 to City Council members that met once a month, but it was Rizzo's $787,637 salary, along with numerous perks that amounted to nearly $1.5 million a year, that made him the poster-child for corruption in government for furious Bell residents.
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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.