Idaho inmates settle lawsuit over prison violence

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A potential class-action lawsuit against the nation's largest private prison company over allegations of violence at the Idaho Correctional Center has been settled in federal court.

The agreement between the inmates and Nashville, Tenn.-based Corrections Corporation of America was filed Tuesday in U.S. District Court in Boise.

In it, CCA doesn't acknowledge the allegations but agrees to increase staffing, investigate all assaults and make other sweeping changes at the lockup south of Boise. If the company fails to make the changes, the inmates can ask the courts to force CCA to comply.

The inmates, represented by the American Civil Liberties Union, sued last year on behalf of everyone incarcerated at the CCA-run state prison. They said the prison was so violent it was dubbed "Gladiator School," and that guards used inmate-on-inmate violence as a management tool and then denied prisoners medical care as a way to cover up the assaults.

CCA has denied all the allegations as part of the settlement, but the agreement is governed under a section of the Prison Litigation Reform Act which only applies in cases in which prisoners' constitutional rights have been violated.




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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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