Supreme Court Refuses To Overturn Arizona Marijuana Ruling

Headline Legal News

The Supreme Court has refused to overturn Arizona court rulings ordering the Yuma County sheriff to return marijuana that was seized from a woman with a California medical marijuana authorization honored by Arizona.

The justices' order was issued without comment Monday in the case of Valerie Okun, who had marijuana in her car when a Border Patrol agent stopped her and her husband in Yuma County, Ariz., in 2011. She was charged with marijuana possession crimes, but the charges were dropped when she provided proof she was authorized to possess marijuana under California's medical marijuana program. Arizona's medical marijuana law allows people with authorizations from other states to have marijuana in Arizona.

But the Yuma County sheriff refused to return Okun's marijuana, even after Arizona courts ruled in her favor.

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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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