Texas court tosses criminal case against former Gov. Perry

Legal Exams

The felony prosecution of former Texas Gov. Rick Perry ended Wednesday when the state's highest criminal court dismissed an abuse-of-power indictment that the Republican says hampered his short-lived 2016 presidential bid.

The 6-2 decision by the Texas Court of Criminal Appeals, which is dominated by elected Republican judges, frees Perry from a long-running criminal case that blemished the exit of one of the most powerful Texas governors in history and hung over his second failed run for the White House.

A grand jury in liberal Austin had indicted Perry in 2014 for vetoing funding for a public corruption unit that Republicans have long accused of wielding a partisan ax. The unit worked under Travis County District Attorney Rosemary Lehmberg, an elected Democrat. Perry wanted her to resign after she was convicted of drunken driving.

Perry was accused of using his veto power to threaten a public official and overstepping his authority, but the judges ruled that courts can't undermine the veto power of a governor.

"Come at the king, you best not miss," Republican Judge David Newell wrote in his concurring opinion, quoting a popular line from the HBO series "The Wire."

Perry has been campaigning for Republican presidential candidate Ted Cruz since becoming the first major GOP candidate to drop out of the race last year. He conceded to reporters in Austin on Wednesday that the indictments hurt his candidacy but didn't dwell on the impact, and said he would veto the same funding again if given the chance.

"I've always known the actions I took were not only lawful and legal, they were right," said Perry, who spoke at the headquarters of an influential Texas conservative think tank, which has previously christened its balcony overlooking downtown as the "Gov. Rick Perry Liberty Balcony."

The court said veto power can't be restricted by the courts and the prosecution of a veto "violates separations of powers." A lower appeals court had dismissed the other charge, coercion by a public servant, in July.

Perry had rebuked the charges as a partisan attack from the start, calling it a "political witch hunt," but the dismissal brought accusations of Republican judges doing a favor for a party stalwart. Texans for Public Justice, a left-leaning watchdog group that filed the original criminal complaint that led to the indictment, said Perry was handed a "gift" based on his stature.

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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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