Hearing: Which court should hear coastal lawsuit?
National News
A legal tug-of-war continues in a state levee board's lawsuit against 97 oil, gas and pipeline companies over the erosion of wetlands.
The Southeast Louisiana Flood Protection Authority-East wants U.S. District Judge Nannette Jolivette Brown to send the case back to Orleans Parish Civil District Court, where the board filed it in July.
Attorneys for Chevron USA Inc. got the lawsuit moved to federal court in August, arguing that federal laws govern many of its claims.
Since then, lawyers have filed hundreds of pages of arguments and exhibits just on the question of which court should hear the case.
Brown scheduled arguments Wednesday.
The lawsuit says oil and gas canal and pipeline work has contributed to the erosion of wetlands that protect New Orleans when hurricanes move ashore. Corrosive saltwater from a network of oil and gas access and pipeline canals has killed plants that anchored the wetlands, letting waves sweep away hundreds of thousands of coastal land, it says.
Gov. Bobby Jindal has blasted the lawsuit as a windfall for trial lawyers and his coastal protection chief, Garret Graves, said the suit would undermine Louisiana's work with the industry to rebuild wetlands. An association of state levee districts voted to oppose the suit.
Since then, however, two coastal parishes heavily dependent on the industry have filed lawsuits of their own raising similar issues.
Earlier this month, the Louisiana Oil and Gas Association sued the state's attorney general, accusing him of illegally approving the Southeast Louisiana board's contract with lawyers who filed its lawsuit.
The association contends that Buddy Caldwell had no authority to approve the contract and that the suit will have "a chilling effect on the exploration, production, development and transportation" of Louisiana's oil and gas.
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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.