UK court brings Brexit plans screeching to halt

Legal Events

Britain's High Court brought government plans for leaving the European Union screeching to a halt Thursday, ruling that the prime minister can't trigger the U.K.'s exit from the bloc without parliamentary approval.

The government said it would go to the Supreme Court to challenge the ruling, which if upheld could prevent it starting exit talks by March 31 as planned.

The pound, which has lost about a fifth of its value since the June 23 decision to leave the EU, shot back up on the verdict, rising 1.1 percent to $1.2430.

Britons voted by a margin of 52 to 48 percent to exit the EU, a process known as "Brexit." Prime Minister Theresa May has said she will invoke Article 50 of the EU treaty, launching two years of exit negotiations, by the end of March.

Several claimants, including a hairdresser and a financial entrepreneur, challenged May's right to trigger Brexit, in a case with major constitutional implications that hinges on the balance of power between Parliament and the government. They argued that leaving the EU will remove rights, including free movement within the bloc, and that can't be done without Parliament's approval.

Three senior judges agreed, ruling that "the government does not have the power under the Crown's prerogative to give notice pursuant to Article 50 for the U.K. to withdraw from the European Union."

The judges backed the claimants' argument that "the Crown could not change domestic law and nullify rights under the law unless Parliament had conferred upon the Crown authority to do so."

The British government immediately said it would appeal the judgment. It said in a statement that Britons voted to leave the bloc in a referendum approved by an Act of Parliament, "and the government is determined to respect the result of the referendum."

The Supreme Court has set aside time to hear the appeal before the end of the year. The case is considered the most important constitutional matter in a generation.

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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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