Calif. jury awards $167M in sexual harassment suit

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A Northern California jury has awarded $167 million to a former hospital employee who claimed in a lawsuit that she was sexually harassed at work and fired after she repeatedly complained.

The federal court jury found Sacramento's Mercy General Hospital and its parent, Catholic Healthcare West, liable on Wednesday for $125 million in punitive damages and $42.7 million in compensation for lost wages and mental anguish in the lawsuit filed by Ani Chopourian.

The 45-year-old Chopourian - a surgical physician's assistant - said she was subject to unwanted sexual advances and touching and sexual conversations among physicians and staff while working at Mercy from 2006 to 2008.

She alleged in her lawsuit against the hospital that she was fired for repeatedly complaining about sexual harassment.

Hospital officials say she was fired for misconduct, and they will appeal.

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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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