Posts Tagged ‘attorneys’

Retired Jocks Dig for Gold in the California Hills

Monday, February 25th, 2013

We have long noted how the generous benefit structure in California encourages professional athletes to file claims long after their careers are over. These athletes need not play for teams based in California: just playing a few games in the state over the course of their careers opens the door for generous lump sum payouts and, more important, lifetime medical benefits. There is indeed “gold in them thar hills.”
Marc Lifsher of the Los Angeles Times does a great job summarizing the impact of California comp law on professional athletes. Since the 1980s, $747 million has been paid out to 4,500 players. That is apparently just what’s been paid – the $3/4 billion may not reflect what’s been reserved for future medical payments.
California’s statute is uniquely generous. It allows anyone injured while working in California to file a claim in the state. Even if the worker has been paid under another state’s comp system, the door remains open. Professional athletes may settle out claims for a few hundred thousand dollars, but they may also secure lifetime medical benefits: given the concussed brains and frequent musculoskeletal injuries that are a routine part of professional athletics, the lifetime medical bills may be enormous. Finally, California has a worker-friendly definition of cumulative trauma, so a professional athlete need not prove a specific body part was injured during a game in that state.
Athletic Attorneys
A number of the lawyers specializing in these claims are former athletes. Mel Owens, a former Los Angeles Rams line backer, represents a number of out-of-state athletes filing claims. “California is a last resort for a lot of these guys because they’ve already been cut off in the other states,” he says.
Lifsher describes the situation of journeyman tight end Ernie Conwell, who played for two out-of-state teams, including the New Orleans Saints. During his 11 year career, he underwent 18 surgeries, including 11 knee operations. He filed for comp benefits in Louisiana and received $181,000 to cover career-ending knee surgery in 2006. He also received $195,000 in injury-related benefits as part of the players’s collective bargaining agreement. But the claim in Lousiana only covered his knee injury. So he filed a claim in California to deal with ongoing health problems that affect his arms, legs, muscles, bones and head. A California judge awarded him $161,000 plus future medical benefits. The payer in this case, the New Orleans Saints, has appealed.
Wrong Solution to a Real Problem
There is little question that retired players face formidable physical and mental challenges resulting directly from their athletic careers. But the question on the table is whether California is an appropriate forum for delivering extended benefits for professional athletes. Part of the rationale for continuing this gratuitously generous program is the fact that athletes pay state taxes on their incomes for contests in California. But given the fact that income taxes have nothing whatsoever to do with comp, this is a specious argument. The taxes paid do not support California’s workers comp system.
Ultimately, the solution to the problem of long-term injuries to professional athletes must be removed from California and relocated to where it belongs: in the labor agreements between professional sport teams and their athletes. The first step in this process requires an act by the California legislature to shut off the spigot, so that out-of-state athletes are no longer allowed to file comp cases in the Golden State. Immediately following this, the players will have to put the issue of life-long benefits for retired players on the bargaining table. This may seem obvious to those of us on the outside, but there is a reason why it may not happen: collective bargaining tends to focus on the needs (and greeds?) of today’s players. Once out of the game, players – other than those joining a broadcast network – simply disappear.
As is so often the case, it’s all about the money: money the owners want to preserve as profits; money the current players want in their own pockets. While management and labor are undoubtedly sympathetic to the former players, the latter are out of the limelight, struggling day by day to function with compromised bodies and brains. They paid the price. Someone should step up and negotiate a reasonable settlement. It’s time for this particular form of California scheming to come to an end.

The Yogi Berra HWR, plus AIG, Florida lawyers, scaffolding & more news notes

Thursday, April 2nd, 2009

Anthony Wright hosts Health Wonk Review at Health Access WeBlog this week, and he serves up some of the wit and wisdom of baseball great Yogi Berra with this week’s best of the health care blogs. It’s a perfect posting for our times when “the future ain’t what it used to be.”
Florida – a bill that would restore a cap on attorney fees passed its first hurdle this week when approved by the Florida House. It must also pass the Senate and be approved by Governor Crist. Attorney fees were considered one of the primary cost drivers in the Florida system and a cap on fees was one of the cornerstones of the 2003 reform, but was overturned in the Supreme Court Murray decision last November. See our prior posts on the topic: Attorney Fees in Florida: What is “Reasonable” and Florida Lawyers Win, Employers Lose.
AIG – In addition to all the other ongoing investigations, state insurance regulators are currently examining whether AIG violated rules governing workers’ compensation sales. “The probe is an offshoot of a 2005 lawsuit from then-New York Attorney General Eliot Spitzer, who said AIG shortchanged the premiums used in calculating its obligations to state pools. In most states, companies that sell workers’ compensation must fund pools that serve as insurers of last resort to cover injuries at employers that pose unattractive risks.” The 50 state regulators expect to have their investigation completed by June.
Legal matters – In this month’s Legal Clinic at Human Resource Executive, employment law attorney Keisha-Ann G. Gray tackles a few tricky legal questions: the length of time an employer must keep a job open for an employee who suffered a work-related injury, which touches on the anti-retaliation principles that apply across many states; also, a discussion about the relationship between the FMLA and workers’ comp leave.
Scaffolding – Scaffolding (general requirements, construction 29 CFR 1926.451) was the most frequently cited standard in fiscal year 2008 by federal OSHA. It is also the standard for which OSHA proposed the second highest penalties. OSHA has resources to help employers and employees identify scaffolding hazards and solutions to those hazards at scaffolding and the OSHA publications page.
Workplace violence – HUB International Risk Consulting is offering a free Webinar on April 9: To learn more or register: Workplace Violence, What You Don’t Know Could Kill You

Florida lawyers win, employers lose

Monday, November 17th, 2008

Florida employers have seen about a 60% rate decrease since the 2003 workers compensation reform but it looks like all that is about to change. NCCI has just filed for an 8.9% Florida rate increase in the wake of a recent Florida Supreme Court ruling. This is an enormous change, particularly in light of the 18.9 percent decrease that had been proposed prior to the ruling.
Why such a giant leap? In Murray v. Mariners Health/ACE USA, the court struck down a cap on attorney fees, which had been a hallmark in Florida’s 2003 workers compensation reforms. Hourly legal fees were eliminated and replaced with contingency fees capped at 20 percent of the award.
An article in Insurance Journal at the time of the ruling tracks some of the reaction by employer and industry groups. Unsurprisingly, this ruling is wildly unpopular with those groups. According to Cecil Pearce of the American Insurers Association:

“A key driver of claim costs prior to the reforms was hourly attorney fees, which made the cost of litigated claims 40 percent higher in Florida than in any other state because of the increased litigation. The 2003 reforms linked attorney fees to the value of benefits secured through a fee percentage schedule, eliminating the ability of claimant attorneys to bill by the hour. With that law now overturned, it is expected that an increase in workers’ compensation premiums will be inevitable.”

A 2001 benchmark study of Florida Workers’ Compensation Claim Costs conducted by the Workers Compensation Research Institute (WCRI) noted that Florida was among the most litigious of the eight large states studied. According to Richard A. Victor, executive director of WCRI:

“The involvement of defense attorneys in workers’ compensation claims – an indicator of litigiousness – is highest in Florida and growing … About 30 percent of claims with more than seven days of lost time involved defense attorneys in Florida, a nine percentage point increase for claims with 24 months’ experience since 1994. By contrast, defense attorneys are involved in less than 8 percent of claims in Texas and Wisconsin.”

The study revealed that defense attorney expenses were also the highest in Florida at more than $2,600 per claim – three times higher than Connecticut, the study state with the lowest expenses.
A Florida Insurance Council Backgrounder on 2003 Comp Reforms noted that today, “The percentage of workers’ comp cases with attorney involvement remains higher in Florida than the national average – 20 percent in Florida compared to about 16 percent nationally. The percentage of cases where the injured employee represents him or herself is the same or less than before the 2003 reforms.”