Supreme Court justice blocks ruling on redrawing Texas districts

Legal Events

U.S. Supreme Court Justice Samuel Alito on Monday temporarily halted enforcement of a lower-court ruling that required two Texas congressional districts to be redrawn.

Responding to an appeal by Texas Attorney General Ken Paxton, Alito halted action on the order and gave those who challenged the districts until Sept. 5 to address the points raised by Paxton’s appeal.

Sept. 5 is the day the three-judge court was to hold a hearing in San Antonio on redrawing the districts, including one based in Travis County and another that includes Bastrop County.

The court ruled two weeks ago that the districts were created by the Republican-controlled Legislature to intentionally discriminate against minority voters, who tend to favor Democrats.

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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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