Brady lawsuit transferred from Minnesota to New York court
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Tom Brady's lawsuit against the NFL in which he wants his four-game suspension overturned will be heard in New York instead of Minnesota.
Brady and the players' union filed their suit Wednesday in Minnesota. But the NFL already had filed papers Tuesday in New York, moments after announcing that Commissioner Roger Goodell upheld the suspension for Brady's involvement in the use of underinflated footballs in the AFC championship game.
U.S. District Judge Richard Kyle, based in Minnesota, ordered the transfer.
The judge wrote that he "sees little reason for this action to have been commenced in Minnesota at all."
He noted that Brady plays in Massachusetts, the union is headquartered in Washington and the NFL in New York, Kyle added that "the arbitration proceedings took place in New York and the award was issued in New York." Jeffrey Kessler, the lead attorney for Brady and the union, wasn't concerned about this game of musical witness chairs.
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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.