Inspector Suspended For Not Shutting Black-Owned Business

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A 20-year veteran building inspector says Genesee County harassed, suspended and constructively fired him because he refused to shut down a black-owned business on a pretext. Michael O'Leary says his boss told him, "Shut them down, go into that business and find some reason to shut them down. We don't want gang bangers and north end problems coming into our Township."

O'Leary claims his boss, defendant Supervisor Douglas Carlton, gave him those racist instructions. He claims that when he and the fire chief could not find any code violations in the black-owned business, the Beach House, and allowed it to stay open, Carlton told him, "You did a real poor job on that assignment," and proceeded to harass, suspend and constructively fire him.

O'Leary says he "considered keeping businesses in Flint Township open for business to be part of his job duties."

He demands more than $75,000 in damages. He is represented by Tom Pabst.

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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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