Landowners to court: Exxon Mobil pipeline breaches contract
Notable Attorneys
Attorneys for landowners along a crude oil pipeline that ruptured in Arkansas in 2013 say Exxon Mobil Pipeline Co. breached its contract because the pipeline interferes with their ability to enjoy their property.
Attorneys for the landowners and Exxon Mobil appeared Wednesday before judges from the 8th U.S. Circuit Court of Appeals in Minnesota.
The landowners asked the appeals court to reinstate their case, which was dismissed last year, and have it re-certified as a class-action suit. Attorney Phillip Duncan says it's an issue of honoring easements.
Exxon Mobil attorney Gary Marts said the case was properly dismissed. He says landowners are essentially trying to regulate pipeline safety through a lawsuit - but that's the job of a federal agency.
The Pegasus Pipeline runs through Arkansas, Missouri, Illinois and Texas.
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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.