Court revives black TV network's discrimination lawsuit

Notable Attorneys

A federal appeals court has revived a lawsuit claiming that a North Carolina city discriminated against an African-American-owned television network.

A divided three-judge panel of the 4th U.S. Circuit Court of Appeals on Friday reversed a lower court decision that dismissed the lawsuit against the City of Greensboro.


Black Network Television claims the city rescinded a $300,000 economic development loan because of race. The city says race had nothing to do with it.

Senior Judge Andre Davis wrote that the network provided enough evidence to make its discrimination claim plausible.

Judge Harvie Wilkinson III said in his dissent that the network presented "nothing more than bare speculation" that race impacted the city's decision.

Greensboro could ask the full court to hear the case. City attorneys didn't immediately return messages Friday.

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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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