Chicago Isn't Liable For Club Tragedy, Court Says
National News
The city of Chicago is not liable for the deaths and injuries of E2 Nightclub patrons trampled in a stairwell trying to flee the club after security guards used pepper spray to quell a disturbance, an Illinois appellate court ruled.
The estates of 20 decedents and more than 30 injured patrons filed suit against the club owners and the city, claiming Chicago failed to enforce court orders barring the use of the club's second floor. They also alleged that police failed to protect or help victims at the scene, and that one officer even closed and locked an exit door, contributing to the fatal pileup on Feb. 17, 2003.
Chicago moved to dismiss the complaint, citing unqualified immunity under the Local Governmental and Governmental Employees Tort Immunity Act, which shields public entities from liability for injuries "caused by adopting or failing to adopt an enactment or by failing to enforce any law."
Plaintiffs countered that the city's actions fell under an exception to the immunity law for "willful and wanton conduct."
However, the appellate court ruled that the exemption does not apply, because the city was not in control of the situation. It added that the plain language of the exception refers to public employees, not public entities.
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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.