Texas Court Upheld Civil Verdict
Headline Legal News
A Texas appeals court has upheld a multimillion dollar civil verdictagainst a Florida private prison company in the beating death of aninmate.
The 13th Court of Appeals ruled last week that Wackenhut CorrectionsCorp., now known as The GEO Group, and Warden David Forrest have to pay$42.5 million to the family of Gregorio de la Rosa Jr.
Thecompany was accused of allowing two inmates to beat de la Rosa withpadlocks stuffed in socks. He died in 2001, four days before hisexpected release from a facility in Raymondville.
A WillacyCounty jury had ordered the company to pay de la Rosa's family $47.5million in a 2006 civil judgment. The Brownsville Herald reports thatthe appeals court reduced the judgment because a family member had died.
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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.