South Korean executives jailed for humidifier cleaner deaths
National News
A South Korean court sentenced the former head of Oxy Reckitt Benckiser to seven years in prison Friday after the company's disinfectant for humidifiers killed scores of people and left hundreds with permanent lung damage.
The Seoul Central District Court ruled that Shin Hyun-woo, Oxy chief from 1991-2005, was guilty of accidental homicide and falsely advertising the deadly product as being safe even for children. Seven years is the maximum prison term the court could issue.
Choi Chang-young, chief judge of the case, said the disaster could have been prevented if Shin and others in the company, a subsidiary of British consumer goods company Reckitt Benckiser Group Plc, had tried to ensure the chemicals' safety.
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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.