UN court lays down Costa Rica, Nicaragua maritime borders

Legal Events

The International Court of Justice laid down definitive maritime boundaries Friday between Costa Rica and Nicaragua in the Caribbean Sea and Pacific Ocean and a small land boundary in a remote, disputed wetland.

As part of the complex ruling, the United Nations' highest judicial organ ruled that a Nicaraguan military base on part of the disputed coastline close to the mouth of the San Juan River is on Costa Rican territory and must be removed.

Ruling in two cases filed by Costa Rica, the 16-judge U.N. panel took into account the two countries' coastlines and some islands in drawing what it called "equitable" maritime borders that carved up the continental shelf underneath the Caribbean and Pacific.

Such rulings can affect issues including fishing rights and exploration for resources like oil.

Earlier, the court ordered Nicaragua to compensate Costa Rica for damage Nicaragua caused with unlawful construction work near the mouth of the San Juan River, the court's first foray into assessing costs for environmental damage.

The order by the United Nations' principal judicial organ followed a December 2015 ruling that Nicaragua violated Costa Rica's sovereignty by establishing a military camp and digging channels near the river, part of a long-running border dispute in the remote region on the shores of the Caribbean Sea.

In total, Nicaragua was ordered to pay just over $378,890 for environmental damage and other costs incurred by Costa Rica— a small fraction of the $6.7 million sought by San Jose.

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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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