Settlement talks fail between al-Kidd, feds

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Court-ordered settlement talks between a man detained in a federal case and the government have failed.

Attorneys on both sides told a U.S. District judge this week that no settlement was reached. That means the lawsuit brought by Abdullah al-Kidd against the United States, former U.S. Attorney General Alberto Gonzales and others will likely go to trial.

Al-Kidd filed the lawsuit in 2005, claiming his civil rights were violated when the government improperly used material witness laws to detain him for two weeks.

The government has maintained it did nothing wrong.

Al-Kidd worked on behalf of the Islamic Assembly of North America, a Michigan-based charitable group federal investigators allege funneled money to activities supporting terrorism.

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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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