Court Will Decide Wash. Shooting Case

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The Supreme Court agreed Monday to consider reinstating the murder conviction of the driver in a gang-related drive-by shooting that horrified Seattle in 1994.

The court will hear arguments in the fall in the case of Cesar Sarausad II. He was convicted for his role as the driver in the shooting in which Melissa Fernandes, 16, was killed and Brent Mason, 17, was wounded outside a Seattle high school on March 23, 1994.

The 9th U.S. Circuit Court of Appeals in San Francisco overturned the conviction because of faulty jury instructions.

In his instructions to the jury, Judge Larry A. Jordan said Sarausad could be convicted of murder regardless of whether he knew of any plan for a killing. The appeals panel ruled that the jury should have been told Sarausad could be convicted of murder only if he knew what was being planned.

The state of Washington asked the Supreme Court to reinstate the conviction, which had been upheld by state appeals courts.

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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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