Florida AG urges spill victims to get lawyers
Recent Cases
Attorneys general in four Gulf Coast states are urging oil spill victims to check with lawyers before settling claims against BP PLC.
They issued consumer advisories Friday in Florida, Alabama, Louisiana and Texas. Earlier this week Claims Administrator Kenneth Feinberg completed his plan to give claimants three payment options — interim, final and quick.
Those opting for final or quick payments must sign away their right to sue BP for additional damages. The attorneys general said they should consult with a lawyer first.
BP's Deepwater Horizon rig exploded in April, spilling oil into the water for three months. In Florida only a few beaches were fouled, but the spill scared away tourists and businesses across the state had financial losses.
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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.