Court rejects blocking health warning on sugary drinks ads

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A federal court in Northern California has rejected an effort to block a new San Francisco law that requires health warnings on ads for sugary drinks.

U.S. District Court Judge Edward M. Chen's decision Tuesday clears the way for the law approved by city lawmakers last year to take effect in July.

The ordinance requires the warnings to appear on ads for soda and other sugar-sweetened beverages that appear on billboards, buses, transit shelters, posters and stadiums within the city.

The labels would read: "WARNING: Drinking beverages with added sugar(s) contributes to obesity, diabetes and tooth decay."

The American Beverage Association and other groups have sued the city to overturn the law. Chen denied their request for an injunction to keep the measure on hold while the case proceeds.

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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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