Ecuador court upholds ruling against Chevron
National News
An appeals court in Ecuador upheld an $18 billion ruling against Chevron Corp. on Tuesday for oil pollution in the Amazon rain forest more than two decades ago.
The ruling confirmed a February judgment in the case. The Ecuadorean plaintiffs said in a statement that the decision is based on scientific evidence presented at trial proving that waste had poisoned the water supply.
"The appellate court relied on a record that proved that Chevron has violated the rights of the communities where it operates," the plaintiffs said in the emailed statement.
The lawsuit deals with pollution of the rain forest by energy company Texaco, which Chevron bought in 2001.
Chevron denounced the appeals court's decision and said it will continue to seek recourse in other courts outside Ecuador.
"Today's decision is another glaring example of the politicization and corruption of Ecuador's judiciary that has plagued this fraudulent case from the start," Chevron said in a statement.
The San Ramon, California-based company has previously alleged fraud in the lawsuit. The plaintiffs have also accused Chevron of defrauding the Ecuadorean court to hide the scale of the oil contamination.
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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.