Ex-Detroit lawyer loses case over 'ghetto' remark

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A former top lawyer for the city of Detroit who lost her job for describing a local court as "ghetto" has lost an appeal over her dismissal.

A federal appeals court says Friday that Kathleen Leavey's comments in 2009 were not protected under the First Amendment because they were made as part of her job.

Leavey, who is white, has said she used the word "ghetto" in a conversation with a court employee to describe Detroit's 36th District Court as inefficient and poor in serving the public. The chief judge, who is black, heard about the comment and contacted city hall. The angry call to a deputy mayor led to Leavey's departure.

The appeals court says the Constitution does not shield certain expressions made during official duties.

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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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