Court: Ohio E-School Can't Delay Repayment of $60M to State

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ECOT's reported enrollment of 15,000 Ohio students makes it one of the largest online charter schools in the U.S.

Democrats jumped on the court's decision to pile criticism on the school, which has struggled for years against attacks on its enrollment practices and student performance ratings.

"This sham, unaccountable school is a clear waste of taxpayer money and needs to be shut down," said Democratic gubernatorial candidate Betty Sutton. "The main thing that they seem to do well is shower Republican candidates and committees with political donations instead of educating children. Unfortunately, it is a symptom of a much larger disease facing Ohio's education system."

ECOT spokesman Neil Clark said the school didn't get a fair shake in court. He took particular aim at one of the three deciding judges, Gary Tyack, as being biased against the school, online learning and school choice.

"Today, Judge Tyack confirmed that he would put his agenda before the law," Clark said in a statement. "He is desperate to destroy ECOT and is unwilling to even wait for the judicial system to play out before advancing his vendetta."

Chief Justice Maureen O'Connor rebuked Tyack after oral arguments were held in the case before the state's high court. She wrote that his comments against the school, its founder and online education were derogatory, extrajudicial, unnecessary and unacceptable.

The school's efforts to revisit the issue of Tyack's impartiality came as it braced for Monday's important school board vote, which comes amid the long-running legal dispute over what attendance-tracking practices should be used to determine state funding.

A state hearing officer ruled against the school in its appeal of the state Education Department's determination that the school owes $64 million for enrollment that can't be justified due to lack of documentation.

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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.

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