Court blocks 2 more parts of Ala. immigration law
Recent Cases
A federal appeals court on Thursday blocked two more sections of Alabama's tough new law targeting illegal immigration pending the outcome of lawsuits that seek to overturn the law entirely.
The 11th U.S. Circuit Court of Appeals issued an order temporarily halting a section that says courts can't enforce contracts involving illegal immigrants and another that makes it a felony for an illegal immigrant to do business with the state.
The law adopted last year was challenged by both the federal government and a coalition of activist groups. A three-judge panel of the 11th Circuit heard arguments last week but said it won't rule on the overall case until the U.S. Supreme Court decides a federal challenge to a similar law in Arizona. The appeals court is also weighing Georgia's law.
Lawyers in the Alabama case had asked the court to at least temporarily stop the two sections and others, claiming they were causing harm to people in the state.
"We are very pleased that the Eleventh Circuit understood the harms these provisions were causing in Alabama, and saw fit to enjoin them," said the Southern Poverty Law Center's Sam Brooke, who argued before the panel last week. "This is a great day for the residents of our state."
Alabama Attorney General Luther Strange said he strongly disagrees with the court's decision.
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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.