Court Rules For Private Lawyer Hired By CA City

National News

The Supreme Court has ruled unanimously that private individuals hired temporarily by local governments have the same protection against civil rights lawsuits as public employees.

Chief Justice John Roberts said Tuesday that it makes no sense to treat people differently because one person is a full-time government employee and another has been retained for a discrete task.

The court sided with attorney Steve Filarsky, who was hired by the city of Rialto, Calif., to investigate the possible misuse of sick leave. Filarsky and several full-time Rialto employees were sued by a firefighter who was under investigation.

Lower courts threw out claims against all the city employees, but the federal appeals court in San Francisco said Filarsky's case was different because he was not employed by Rialto.



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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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