South Dakota and Flandreau Santee Sioux tribe clash in court
Headline Legal News
The Flandreau Santee Sioux tribe is suing South Dakota over the state's interpretation that contractors working on an expansion of the Royal River Casino are required to pay contractor excise taxes to the state.
The Argus Leader reported that the lawsuit alleges it's an intrusion into tribal sovereignty and is conflicting with U.S. laws that regulate commerce on reservations.
"The economic burden and the intrusion into tribal sovereignty interfere and are incompatible with the federal and tribal interests in promoting tribal self-government, self-sufficiency and economic development," the lawsuit said.
The lawsuit is the latest clash between the tribe and the state. The tribe's casino has often been a flashpoint for disputes.
The Flandreau started expanding the casino after Gov. Dennis Daugaard agreed to allow the tribe to double the number of slots it had there. The tribe agreed to increase payments to Moody County to offset law enforcement expenses.
Daugaard's chief of staff, Tony Venhuizen, said the tribe doesn't collect the contractors' excise tax.
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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.