With court victory, hand of Brazil's president strengthened
Headline Legal News
Fighting to save his job, Brazilian President Michel Temer has received a huge boost from a decision by the country's top electoral court to reject allegations of illegal campaign finance and keep him in office.
The Superior Electoral Tribunal's 4-3 vote late Friday gave Temer a lifeline amid widespread calls that he resign in the face of a corruption scandal.
Last month, a recording emerged that apparently captured Temer endorsing hush money to ex-House Speaker Eduardo Cunha, a former Temer ally serving 15 years in prison for corruption and money laundering. Soon after, details of another bombshell emerged: that Temer was being investigated for taking bribes.
Temer has denied wrongdoing and vowed to stay in office.
However, the fallout from the scandals was so great that many observers expected that the electoral court judges would be swayed to remove Temer from office over unrelated campaign finance allegations. While in theory Brazilian justices are impartial, in reality they are often highly political. Indeed, two of judges who voted in Temer's favor were his appointees.
"While Temer is hard for many people to digest, he will likely remain in office," said Alexandre Barros, a political risk consultant with the Brasilia-based firm Early Warning. "Instability is bad for everybody. So many will say at this point, 'If we have to pay the price for sticking with Temer, let's do it.'"
While Temer has crossed a huge hurdle to staying in power, he is still facing threats on many fronts. The attorney general is considering pressing charges against him for allegedly receiving bribes, over the audio recording and for allegedly trying to obstruct a colossal investigation into billions of dollars in inflated contracts and kickbacks to politicians. Temer's approval rating is hovering around 9 percent and he has a tenuous hold on his ruling coalition.
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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.