Husband of high court candidate begins prison sentence

Legal Events

The husband of a Pennsylvania appellate court judge who is running for the state’s highest court began serving a prison sentence Tuesday in a long-running case, authorities said.

Charles McCullough’s incarceration comes as voters decide whether to back his wife in her bid for an open seat on Pennsylvania’s Supreme Court.

Commonwealth Court Judge Patricia McCullough is seeking the Republican nomination in May 18′s primary election against two fellow Republican judges.

On Monday, the state Supreme Court denied Charles McCullough’s latest appeals. He is currently representing himself.

Allegheny County District Attorney Stephen Zappala’s office said McCullough reported as ordered Tuesday morning and was taken into custody to begin serving a state sentence of 2-1/2 to 5 years in prison.

The 66-year-old McCullough, a former Allegheny County councilman, was convicted of theft and misappropriation of funds in 2015 for using his power of attorney to take $50,000 from the trust fund of an elderly woman.

He spent the money in 2006 and 2007, using $40,000 for campaign contributions and sending the other $10,000 to a charity, according to court records.

McCullough was charged in 2009. He had argued at his trial that he had the widow’s approval to use the money and had remained free on appeal since his sentencing.

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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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