Supreme Court sides with Kansas in water dispute
Recent Cases
The Supreme Court on Tuesday ordered Nebraska to pay Kansas $5.5 million in a long-running legal dispute over use of water from the Republican River.
The justices also gave Nebraska some of what it asked for and ordered changes to the formula for measuring water consumption. Nebraska argued that the formula was unfair.
Justice Elena Kagan, writing the majority opinion, said the court was adopting the recommendations of the independent expert the justices appointed to help resolve the states' differences.
The dispute centers on a 1943 compact allocating 49 percent of the river's water to Nebraska, 40 percent to Kansas and 11 percent to Colorado. Since 1999, Kansas has complained that Nebraska uses more than its fair share of water from the river, which originates in Colorado and runs mostly through Nebraska before ending in Kansas.
"Both remedies safeguard the compact; both insist that states live within its law," Kagan wrote.
Nebraska Attorney General Doug Peterson's office said it was pleased with the decision. The $5.5 million award is significantly less than the $80 million that Kansas had sought.
"We hope the decision will move the basin states forward and provide continued incentives toward shared solutions to our common problems," the office said in a statement. "We are confident that payment of the court's recommended award will finally allow us to leave the past where it belongs — in the past."
While calling the decision "reasonable," Nebraska Gov. Pete Ricketts said he looked forward to working with his Kansas and Colorado counterparts to move forward.
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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.