W.Va. court hears 'rescue' funding arguments

Legal Events

Whether West Virginia Supreme Court candidate Allen Loughry receives additional public funds for his campaign hinges on whether the U.S. Supreme Court sees a difference between elections for the judiciary and races for other political posts, the state court was told during a hearing Tuesday.

Adam Skaggs, lawyer for the Republican hopeful, argued that legislative and executive branch officeholders are expected to favor agendas and interest groups that helped them win. But judges are supposed to harbor no bias, and West Virginia created the public financing pilot program amid concerns about campaign cash influencing the judiciary, said Skaggs, an official with the nonpartisan Brennan Center for Justice at New York University's law school.

"The state has compelling interests in the context of judicial elections that are absent from any other type of election," Skaggs told the court.

The point is crucial to Loughry's pursuit of "rescue" funds, normally triggered by spending by a traditionally financed candidate or outside group. With two, 12-year terms up on the court this year, Loughry alone among the four Supreme Court candidates has sought and received funding through the pilot program. Provided $350,000 for the general election, Loughry is seeking another $144,500 or so in matching funds.

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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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