High court raises doubts over Puerto Rico sovereignty
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The Supreme Court on Wednesday raised doubts about whether Puerto Rico should be treated as a sovereign state with powers that go beyond its status as a territory of the United States.
The justices considered the question during arguments in a criminal case involving two men who claim that Puerto Rico and the federal government can't prosecute them for the same charges of selling weapons without a permit.
The double jeopardy principal prevents defendants from being tried twice for the same offense. But there is an exception that allows prosecution under similar state and federal laws, since states are considered separate sovereigns.
Several justices said Puerto Rico's power to enforce local laws really comes from Congress, which in theory could take it away.
The case has broad political and legal implications that could affect Puerto Rico on issues ranging from taxation and bankruptcy to federal benefits. It comes as the high court prepares to hear a separate dispute later this year over whether the financially struggling Puerto Rican government can give its municipalities the power to declare bankruptcy.
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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.