Federal court upholds Texas open meetings law

Legal Events

A federal appeals court has upheld Texas' open meetings law as constitutional, rejecting a lawsuit that argued it stifled free speech for government officials.

The 1967 Texas Open Meetings Act prohibits a quorum of members of a governmental body from deliberating in secret. Violations are punishable by up to six months in jail and a $500 fine.

Officials from a group of 15 Texas cities, including Alpine, Arlington and Houston suburb Sugar Land, challenged the law in 2009. A U.S. district judge ruled against them, prompting an appeal the New Orleans-based 5th U.S. Circuit Court of Appeals.

A three-judge panel ruled Tuesday that the law promotes disclosure of speech and does not restrict it.

Texas Attorney General Greg Abbott called the decision a victory for open government.

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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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