High court rejects military contractors appeals
National News
The Supreme Court on Tuesday turned away three appeals from military contractor KBR Inc. that seek to shut down lawsuits over a soldier's electrocution in Iraq and open-air burn pits in Iraq and Afghanistan.
The justices offered no comment in allowing the lawsuits to proceed.
One lawsuit was filed by the parents of Staff Sgt. Ryan Maseth, who was electrocuted in his barracks shower at an Army base in Iraq in 2008. The suit claims KBR unit Kellogg Brown & Root Services Inc. was legally responsible for the shoddy electrical work that was common in Iraqi-built structures taken over by the U.S. military. KBR disputes that claim.
Dozens of lawsuits by soldiers and others assert they were harmed by improper waste disposal while serving in Iraq and Afghanistan. They seek to hold KBR and Halliburton Co. responsible for exposing soldiers to toxic emissions and contaminated water when they burned waste in open pits without proper safety controls.
The contractors say they cannot be sued because they essentially were operating in war zones as an extension of the military.
The Obama administration agreed with the contractors that lower courts should have dismissed the lawsuits, but said the Supreme Court should not get involved now because lower courts still could dismiss or narrow the claims.
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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.