Drivers challenge license suspensions for unpaid court debt
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It can start with a couple of traffic tickets. Unable to pay the tickets right away, a driver becomes saddled with late fees, fines and court costs. Soon, the driver may be taken off the road indefinitely.
More than 40 states allow the suspension of driver’s licenses for people with unpaid criminal or traffic court debt.
But now, advocates across the country are pushing to change that, arguing that such laws are unconstitutional because they unfairly punish poor people and violate due process by not giving drivers notice or an opportunity to show they cannot afford to pay the fees.
Lawsuits have been filed in at least five states over the past two years.
“It’s not that I don’t want to take care of what I owe. I really wish I could,” said Brianna Morgan, a single mother from Petersburg, Virginia, who hasn’t had a license in three years because she owes more than $400 in traffic fines and court costs from traffic violations and a disorderly conduct citation.
“I really don’t have a way to pay it,” said Morgan, who supports herself and her three children on a monthly disability check.
Advocates had a victory this week in Tennessee, where a federal judge ruled that a law that allows the state to revoke the licenses of low-income people with unpaid court debt from past criminal convictions is unconstitutional.
U.S. District Judge Aleta Trauger called the law “powerfully counterproductive” and ordered Tennessee to stop revoking licenses and to reinstate the licenses of people who had theirs revoked due solely to nonpayment of court fees.
“If a person has no resources to pay a debt, he cannot be threatened or cajoled into paying it; he may, however, become able to pay it in the future. But taking his driver’s license away sabotages that prospect,” Trauger wrote in her ruling Monday.
In Virginia, nearly a million people currently have suspended driver’s licenses at least in part because of unpaid court debt, according to the Legal Aid Justice Center, a nonprofit that is challenging the practice in a federal lawsuit. A judge dismissed the case on jurisdictional grounds, but in a ruling in May, the 4th U.S. Circuit Court of Appeals gave the case new life, sending it back to the lower court to allow the plaintiffs to revise the lawsuit.
Millions of drivers nationwide have lost licenses because of such laws. In a study released in September, the justice center estimated that 4.2 million people then had suspended or revoked licenses for unpaid court debt in five states alone: Virginia, Tennessee, Michigan, North Carolina and Texas.
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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.