Court upholds Phoenix law over same-sex wedding invitations

Legal Events

An Arizona appeals court on Thursday upheld a Phoenix anti-discrimination law that makes it illegal for businesses to refuse service to same-sex couples because of religion.

The ruling comes days after the U.S. Supreme Court sided with a Colorado baker who refused to make a wedding cake for a same-sex couple. The high court found Monday that a Colorado civil rights commission showed anti-religious bias when it ruled against Jack Phillips for refusing to make the cake at his Masterpiece Cakeshop.

The decision, however, did not address the larger issue of whether a business can invoke religious objections to refuse service to gay and lesbian people.

In the Arizona case, the state Court of Appeals sided with the city in a lawsuit first brought in 2016 by a wedding invitation business, saying the ordinance is constitutional and does not violate freedom of religion or speech.

"We have previously found that eliminating discrimination constitutes a compelling interest," Judge Lawrence Winthrop wrote, adding that "antidiscrimination ordinances are not aimed at the suppression of speech, but at the elimination of discriminatory conduct."

The court said if Joanna Duka and Breanna Koski, owners of Brush & Nib Studio, "want to operate their for-profit business as a public accommodation, they cannot discriminate against potential patrons based on sexual orientation."

Attorney Jonathan Scruggs of Alliance Defending Freedom, who represented the women, said they intend to appeal the decision to the Arizona Supreme Court.

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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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