Supreme Court deadline nears for suit over wetland loss
Recent Cases
A Louisiana flood board is nearing a deadline for asking the U.S. Supreme Court to review its lawsuit seeking to make oil and gas companies pay for decades of damage to coastal wetlands.
Federal district and appeals courts have rejected the lawsuit, which was met by fierce opposition from the energy industry and many in state government when it was filed in 2013. The suit by the Southeast Louisiana Flood Protection Authority East said drilling and dredging activity contributed to loss of wetlands that form a hurricane buffer for New Orleans.
Oil industry supporters have labeled the lawsuit an attack on a vital industry. Tuesday marks the deadline for the flood board attorneys to seek Supreme Court review after their last defeat in April.
A federal district judge's 2015 ruling held that federal and state law provided no avenue by which the board could bring the suit.
A three judge panel of the 5th U.S. Circuit Court of Appeals upheld the ruling in March and the full 15-member court refused a rehearing in April. Lawyers for the flood board had a 90-day window to seek Supreme Court review.
Flood authority lawyers have argued that the flood board has the right to seek compensation for levee damage under the federal Rivers and Harbors Act. They also argued that federal judges should not have allowed the case to be moved to federal court from the state court where it originally was filed.
Meanwhile, some coastal parishes are pursuing coastal damage suits in state courts on different legal grounds. Gov. John Bel Edwards, a Democrat, has urged the energy companies to work toward a settlement. Industry leaders have resisted, saying the suits are meritless.
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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.