TVA coal ash spill has hundreds suing for damages

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Hundreds of people sued the Tennessee Valley Authority for damages before a one-year deadline to file personal injury claims related to the utility's huge coal ash spill at Kingston.

Court clerks said 20 more federal lawsuits were filed in Knoxville on the final day before the Monday deadline, most of them seeking damages for multiple plaintiffs.

TVA has filed motions that contend the nation's largest public utility was providing a government service and is immune from such damage claims.

An attorney with clients seeking damages in 28 lawsuits, John Agee of Clinton, said Tuesday that instead of a court fight, some sort of administrative agency should be set up to deal with the claims. They stem from the Dec. 22, 2008 spill and TVA's continuing cleanup at the coal-fired plant about 40 miles west of Knoxville.

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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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