Appellate court rules against mine company’s Arizona project
Legal Events
Minerals Inc.’s plan for a new open-pit copper mine in southeastern Arizona.
The 9th U.S. Circuit Court of Appeals agreed that the U.S. Forest Service’s approval of a permit for the Rosemont Mine project in a valley on the eastern flank of the Santa Rita Mountains near Tucson went beyond what is allowed under a federal mining law.
The appellate court cited the planned use of Coronado National Forest land for long-term storage of waste rock, not actual mining, and the lack of valuable minerals on that property.
Hudbay Minerals officials said in a statement Thursday they were reviewing the ruling and would continue to pursue alternative plans for mining part of the Rosemont copper deposit on nearby private lands.
A coalition of environmental and tribal groups challenging the mining hailed the appellate court’s decision, the latest in a series of legal obstacles to the project.
“This momentous decision makes it clear that Hudbay’s plan to destroy the beautiful Rosemont Valley is not only a terrible idea, it’s illegal,” said Allison Melton, an attorney at the Center for Biological Diversity.
Hudbay has another mine project in the works on the western flank of the Santa Ritas.
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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.