Law firm hired to investigate economic development agency
Legal Events
The Oregon Department of Justice has hired a law firm to investigate allegations of discrimination and mismanagement at the state's economic development agency, Business Oregon.
The Oregonian/OregonLive reports that in an anonymous letter to Gov. Kate Brown earlier this month, a group of employees described hostile working conditions and accused leadership of gender bias and misusing taxpayer funds. The letter asked the governor to undertake an investigation and said the employees had retained Portland labor attorney Dana Sullivan "to help ensure employment rights are protected as a result of this complaint."
The Justice Department will be supervising the probe. Its agreement with the Portland office of Perkins Coie provides for a maximum cost of $50,000. The budget could go quickly, as the firm's partners command $525 to $630 an hour, and paralegals and associates bill out at $150 to $445 an hour.
The agreement specifically directs Perkins Coie to undertake "an attorney-client privileged investigation," meaning the Justice Department or Business Oregon could try to exempt the findings from disclosure under public records law. It also says the law firm could be called on to provide legal advice to the DOJ, the governor's office or the "benefitting agency" - Business Oregon.
The Justice department did not respond to questions about the agreement, whether it would make the findings public or whether that decision would be made by Business Oregon.
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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.