Court OKs Class-action Suit Over Apartment Leases
National News
An appeals court has certified a class-action lawsuit that seeks to invalidate provisions that are routinely included in apartment leases signed by University of Iowa students.
The Iowa Court of Appeals ruled Thursday that tenants of landlord Tracy Barkalow can have a trial to challenge lease provisions that critics say are illegal and unfairly shift costs and liability from landlords to tenants.
The provisions being challenged include fees that are deducted from security deposits for cleaning regardless of an apartment's condition and requirements that tenants pay for damage in common areas and routine repairs.
The Iowa City Tenants Project, which is representing the plaintiffs, has said the class could include 240 tenants but the case will have a broader reach since those provisions are the ``industry standard.''
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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.