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(c) 2010-2024 Jon L Gelman, All Rights Reserved.

Tuesday, December 8, 2009

NJ Assembly Passes Bill to Stop Raid on Second Injury Fund


The NJ Assembly approved legislation to halt raids on the NJ workers' compensation Second Injury Fund (SIF). The vote to approve passage of SCR60 was unanimous. In the past $95 million was diverted from the SIF to the State's general treasury.


Click here to read more about the Second Injury Fund.

Monday, December 7, 2009

US Supreme Court Turns Down RICO Appeal- Good News for Injured Workers

Good news was message to injured workers' from the US Supreme Court today. The Court upheld a favorable RICO decision of the Court of Appeals that permits injured workers to institute federal Racketeer Influenced and Corrupt Organizations Act(RICO) claims against employers, insurance carriers and defense medical experts. It upheld the 6th Cir. decision that Michigan's Workers' Compensation Disability Act (WDCA) did not reverse preempt, under the federal McCarran-Ferguson Act by engaging in predicate acts of mail fraud and wire fraud, in order to deny the injured employees' valid claims for workers' compensation benefits.


The motion of MI Self-Insurers Association for leave to file
a brief as amicus curiae is granted. The motion of American
Trucking Associations, Inc. for leave to file a brief as amicus
curiae is granted. The motion of DRI - The Voice of the Defense
Bar for leave to file a brief as amicus curiae is granted. The
motion of National Council of Self-Insurers, et al. for leave to
file a brief as amici curiae is granted.
The petition for a
writ of certiorari is denied."



Cassens Transport Co. v. Brown, --- S.Ct. ----, 2009 WL 1269080, 77 USLW 3635, 78 USLW 3011 (U.S. Dec 07, 2009) (NO. 08-1375)

Click here to see the Workers' Compensation Blog for additional articles on RICO matters and workers' compensation.



Click here to read more about the late Judge Harold Ackerman who sat below on the 6th Cir.  By Designation. That decision was affirmed by the US Supreme Court. Judge Ackerman was a former NJ Workers' Compensation Judge(1955-1965), the Federal Judge who managed the entire, original,  asbestos litigation docket in the 1980's (ie.  Austin v. Johns-Manville Products Corp., 672 F.2d 902 (C.A.3 (N.J.) 1981)). Judge Ackerman passed away last week at age 81. 

Saturday, December 5, 2009

Workplace Safety, the Aging Workforce & The Logical Step

Safety in the workplace is now a growing concern as US aging workforce expands. It has been frequently reported that the expansion of this dimension of the labor sector has generated an increase in serious accidents and illness at work.


Over the past decade the work force has demographically changed. The number of those who are working past age 55 has grown. This increase mirrors an increase in accidents at work. It well known that those age 55 and older have a higher propensity for illness and disease resulting in complex of medical conditions.


The workers' compensation claims for this age group have become more serious and eventually evolve into Social Security Disability Claims. Besides the administrative complexity of navigating a fragile and dysfunction workers' compensation, these workers are require more emergent medical care for exigent conditions.


The National Institute for Occupational Safety and Health (NIOSH) has recognized this issue and is attempting to put SAFETY back into the equation.


"A report of conference presentations and discussions among participants from the National Academies of Science, universities and research institutions, and representatives of professional associations, industry and labor, recommends attention to workplace environments to maintain “work ability” as workers age, along with legislative fixes and research to fill in knowledge gaps for keeping workers healthy and productive."


As Social Security studies these issues, and more reliable data becomes available through NIOSH's efforts, a redesign of the approach to mandate safety, and deliver medical benefits universally and in a more efficient fashion, appears to be the next logical step.


Click here to read more about safety and workers' compensation.

Friday, December 4, 2009

US Supreme Court About to Rule on RICO Case

The US  Supreme Court has placed Cassens Transport Co., et al., Petitioners v,  Paul Brown, et al.,  No. 08-1375 on its conference agenda for December 4, 2009. At that time the Justices will review the Petition for Certiorari.


Pending before the US Supreme Court is a petition for a writ of certiorari to review a decision where: the employer, insurance company and their experts were found to have conducted themselves in violation of the RICO Act.


In this reverse preemption case, Public Citizen filed a brief which crystallizes the issues before the Court.


 Deepak Gupta and Allison Zieve of Public Citizen are co-counsel for the respondent.


"Respondent’s Brief in Opposition to the Petition for Certiorari.


The McCarran-Ferguson Act, 15 U.S.C. § 1012(b), “precludes application of a federal statute” that would “invalidate, impair, or supersede” a state law “enacted * * * for the purpose of regulating the business of insurance.” The questions presented in this case are:


1. Whether a state workers’ compensation law that transfers the risk of workplace injuries to employers, and requires that employers secure their ability to assume those risks either by purchasing of insurance or by self insuring, regulates the “business of insurance” within the meaning of the McCarran-Ferguson Act.


2. Whether a State’s exclusive, administrative remedial scheme for handling contested workers’ compensation benefit determinations is impaired within the meaning of the McCarran-Ferguson Act by the availability of suits under the federal Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq., contesting the denial of worker’s compensation claims."


Click here to see the Workers' Compensation Blog for additional articles on RICO matters and workers' compensation.

Tuesday, December 1, 2009

AIG Declines on Questionable Workers Compensation Reserves

A CNBC analyst has estimated that AIG's workers' compensation reserves may fall short this year contributing to an $11 Billion loss for the company. Shares of AIG were down 12% on the news of the possible deficiet.

To read more about AIG and workers' compensation click here.

The Gift That Keeps Giving: The SSA Reverse Offset

Social Security (SSA) has been subsidizing a select group of States since 1981. The workers' compensation insurance carriers in only those select States are permitted to take a credit against SSA payments. 


The  US Congress legislated that if a State had a recognized Social Security Offset Plan in effect on February 18, 1981, then the SSA would not offset workers' compensation benefits to those injured workers. In those jurisdictions, the offset is taken by the workers' compensation insurance carrier, who gains the advantage.


It was recently estimated that that over 583,923 individuals were receiving Social Security Disability Benefits. Of those, 156,096 were eligible for an offset to be taken by SSA. But, of those, 44,748 or 28.7%, were eligible for a reverse offset to be taken instead by the workers' compensation insurance companies.


To read more about Social Security and workers' compensation click here.


Those States that have been designated as "reverse offset"States, and are permitted have  the workers' compensation carrier to take the credit are: California, Colorado, Florida, Louisiana, Minnesota, Montana, Nevada, New Jersey, New York, North Dakota, Ohio, Oregon, Washington and Wisconsin.