State News

NWCDN is a network of law firms dedicated to protecting employers in workers’ compensation claims.


NWCDN Members regularly post articles and summary judgements in workers’ compensations law in your state.  


Select a state from the dropdown menu below to scroll through the state specific archives for updates and opinions on various workers’ compensation laws in your state.


Contact information for NWCDN members is also located on the state specific links in the event you have additional questions or your company is seeking a workers’ compensation lawyer in your state.


Now Considering Firms for Our Network in

Medical Marijuana:

Recent Pennsylvania Commonwealth Court Decisions.

Fegley, as Executrix of Estate of Paul Sheetz v. WCAB(Firestone Tire & Rubber), ___ A.3d ___ (Pa.Cmwlth. 2023) and Edward Appel v. WCAB (GWC Warranty Corporation), ___ A.3d ___ (Pa.Cmwlth. 2023).

In Fegley the Commonwealth Court found that Section 2102 of Pennsylvania’s Medical Marijuana Act (“MMA”) which provides that, “[n]othing in this act shall be construed to require an insurer or health plan, whether paid for by Commonwealth funds or private funds, to provide coverage for medical marijuana.” did not prohibit reimbursement of out-of-pocket payments by claimants for medical marijuana. It held that the Pennsylvania Worker’s Compensation Act mandates workers’ compensation carriers to reimburse claimants for out-of-pocket costs of medical treatments that have been found to be reasonable and necessary for work-related injuries and this included medical marijuana.


The court also addressed Section 2103 of the MMA which indicates that nothing in the MMA “shall require an employer to commit any act that would put the employer or any person acting on its behalf in violation of Federal law.” In addressing   Section 841(a) of the Federal Drug Act which provides that it is “unlawful for any person knowingly of intentionally … to manufacture, distribute, or dispense … a controlled substance.” 21 U.S.C. § 841(a),the court held that reimbursement of out-of-pocket expenses for medical marijuana by a workers’ compensation carrier was not a violation of federal law as reimbursement is not the manufacturing, distribution, or dispensing of medical marijuana.


Following its Opinion in Fegley, the Commonwealth Court in Appel held that while the MMA did not require an employer/carrier to provide coverage for medical marijuana, coverage is “different and distinct from reimbursement,” and there is no statutory language which prohibited the reimbursement to a Claimant for costs incurred for the lawful use of medical marijuana. 


Thus, the denial of reimbursement costs incurred for lawful use of medical marijuana which has been found to be reasonable and necessary treatment of a compensable work injury can be found to constitute a violation of the Workers’ Compensation Act. Provided that medical marijuana is reasonable and necessary for a work injury and a Claimant is lawfully using the drug under the MMA, failure to make payment could now subject an employer/carrier to penalties under the Workers’ Compensation Act. 


Both decisions, based the rationale applied differentiating between coverage and reimbursement given the potential significant impact upon the defense industry,  will most likely be appealed to the Pennsylvania Supreme Court.  It should be noted that there was a well written and reasoned dissent filed in Fegley which noted that there should not be reimbursement made by a carrier if there is no coverage for the item that is requested to be reimbursed.  Further, it was posited that if the doctor is contributing to the dispensing of marijuana, which is still prohibited by Federal Law, the treatment may not be reasonable and necessary treatment.


It should be noted that there may be other arguments that could be advanced against the payment and/or reimbursement of medical marijuana.  Such argument may require the initiation of litigation.  Should a request be received for reimbursement for medical marijuana, it may be advisable to seek legal counsel as failure to take action or issue payment within thirty (30) days may now lead to the filing of a Petition for Penalties by the claimant’s bar as well as a request for the imposition of Lorino fees for the time expended by counsel in seeking reimbursement for such invoices.    

 

We’ve got a new BRO on the way 


We’ve learned that the Division has selected Louis Sanchez to be a Benefit Review Officer in Houston. Louis currently serves as an Ombudsman with the Office of Employee Counsel. It has been our pleasure to work with him in that capacity, and we look forward to working with him in his new role. 

Congratulations, Louis! 

Copyright 2023, Stone Loughlin & Swanson, LLP 


“No shot, no money”

 
Judging by those annoying television commercials from personal injury attorneys – especially during Sunday afternoon NFL football games – a car wreck In Texas can mean a BIG payday. Now we may know why. 

Two insurance companies have filed suit against a San Antonio doctor for allegedly prescribing unnecessary and expensive spinal procedures for the sole purpose of artificially inflating the value of his patients’ personal injury claims. The complaint, first filed in San Antonio federal court last July, alleges that San Antonio orthopedic surgeon Sanjay Misra, M.D. falsely purported to legitimately examine patients reporting neck or back pain and prescribed medically unnecessary epidural steroid injections for nearly all of them. 

The complaint describes one 16-year-old patient who told Dr. Misra that she was not comfortable with his recommendation that she receive an injection. He allegedly told her “Well, no shot, no money” -- or words to that effect. 

In the latest twist to the case, the San Antonio Express News reports this month that the insurers have subpoenaed communications between Dr. Misra and two personal injury attorneys that football fans know all too well – Jim Adler, who bills himself as the “Texas Hammer” and appears in television ads wielding a sledgehammer, and Jeff Davis, who appears in ads repeating his telephone number “444-4444!” ad nauseum. The subpoenas reportedly seek records of more than 185 of Dr. Misra’s patients, including documents reflecting the referral of those patients to Dr. Misra by Adler and Davis. The “Texas Hammer” is balking at turning over those records and has filed a motion to quash the subpoenas. 

In the Texas workers’ compensation system, the Official Disability Guidelines – Treatment in Workers’ Comp has gone a long way toward curbing unnecessary treatment. But the ODG does not govern treatment in personal injury cases. 

Treating victims of car wrecks appears to be treating Dr. Misra well. Bexar County Appraisal District records show that he owns a mansion in San Antonio which Redfin describes as being “built specifically for a high-profile NBA star” with 9 bedrooms, 9 bathrooms, a pool, a tennis court, and an estimated value of $4,163,165.

This coming May, there’s no place finer than North Carolina

 
Registration is now open for the 2023 Southeastern Regional Conference of the National Workers’ Compensation Defense Network to be held in Charlotte, North Carolina on May 4 and 5, 2023. The conference is an invitation-only seminar covering cutting-edge legal and claims management issues and featuring presenters who are rock stars in their fields of expertise. Best of all? It’s free for clients and invited guests of SLS. 

The conference will kick off with a welcome reception on the evening of Thursday, May 4 followed by the educational portion on Friday, May 5. That frees up the weekend for exploring the Queen City, home of the NASCAR Hall of Fame.

Not familiar with NWCDN? You should be. It’s a nationwide network of AV-rated law firms organized to network for their clients’ benefit and dedicated to protecting employers and carriers in workers’ compensation claims, and it’s an invaluable resource for employers and carriers. The network selects one law firm from every state, and SLS is the member for the great state of Texas. 

You can learn more about NWCDN and the seminar at the NWCDN website. If you’d like to attend the seminar as our guest, let us know!

Bill proposes to create new cause of action for unfair settlement practices of a workers’ compensation claim


In what may turn out to be a case of deja vu all over again, another newly-filed bill proposes to turn back the clock on enforcement of the Texas workers’ compensation scheme. HB 1702, filed by Representative Nicole Collier (D – Dallas), would amend Insurance Code section 541.060 to permit an injured worker or his beneficiary to bring a private cause of action against the workers’ compensation insurer for unfair settlement practices.

The bill would undo the law that has existed since 2012 when the Supreme Court of Texas decided Texas Mutual Insurance Company v. Ruttiger. In that case, the court held that a workers’ compensation claimant could not bring a cause of action under section 541.060. The court observed that the Texas Workers’ Compensation Act requires the Texas Department of Insurance, Division of Workers’ Compensation to monitor the actions of insurance carriers for compliance with the Act and myriad Division rules, and the Division has authority to assess administrative penalties of up to $25,000 per day for violations. It concluded that permitting a workers’ compensation claimant to recover damages by simply suing under the general provisions of section 541.060 “would be inconsistent with the structure and detailed processes of the Act.”

Before the Court issued the decision in Ruttiger, attorneys representing injured workers’ regularly sued insurance carriers for unfair settlement practices under section 541.060. In those days, such suits presented the chance for a big payday – similar to the way car wrecks do now. If Representative Collier’s bill becomes law, we may be headed back to those days. 

We’ll continue to monitor HB 1702 and report on its status. 
 

Right on cue: Bill proposes to remove the term “incurable imbecility” from LIBs statute


The El Paso court of appeals released its decision in Portillo on January 31, 2023, and nine days later, Texas Senator Drew Springer (R – Weatherford) filed a bill to delete the term “incurable insanity or imbecility” from the LIBs statute. Springer’s bill, SB 799, proposes to replace that archaic term with the phrase “a permanent major neurocognitive disorder or a psychotic disorder.” 

SB 799 would make other changes to the LIB statute as well. Of significance, the bill also would permit first responders to receive LIBs when they suffer a “serious bodily injury . . . that permanently prevents [them] from performing any gainful work.” 
 


To interpret the current LIBs statute, appeals court approves definition of “imbecility” from dictionary published when William Howard Taft was President  


The El Paso court of appeals has provided new guidance for interpreting the term “incurable imbecility” in Texas Labor Code section 408.161 pertaining to eligibility for Lifetime Income Benefits. In El Paso Independent School District v. Portillo, the court approved of a definition of imbecility from a 1910 edition of Black’s Law Dictionary.

The dispute arose when Alejandro Portillo, who worked for EPISD as a heating and air conditioning technician, climbed a ladder to assist a coworker and the coworker fell on top of him, causing Portillo to suffer a head injury. He received medical treatment at a rehabilitation facility for five months and thereafter experienced continuing headaches and dizziness which caused him to lose his balance and fall. Although he was eventually released to return to work in a semi-sedentary position at EPISD, he was not able to return to his prior job as an HVAC technician and subsequently chose to retire from the school district. He applied for LIBs on the ground that the injury left him with incurable imbecility. He lost at the Division but appealed to district court where a jury agreed that he was entitled to LIBs and the trial court entered judgment in his favor. 

On appeal, EPISD argued (among other things) that the jury charge contained an erroneous definition of “imbecility” because (1) it was based on an excerpt of the definition of that term in the dictionary from 1910 and (2) it was different than the definition used by the Administrative Law Judge at the Division, thereby changing the issue to be decided by the jury and “moving the goalposts” in Portillo’s favor. The court of appeals rejected both arguments and affirmed the trial court’s judgment that he suffers from “incurable imbecility.” 

In doing so, the court of appeals explained why it approved of a definition from 1910. It noted that words can change meaning over time – a concept known as “semantic drift” – so to construe the Legislature’s intent in using a statutorily undefined term it is appropriate to consider how the term was defined in dictionaries published as close in time to the enactment of the statute as possible. Since the Legislature added the term “imbecility” to the statute in 1917, the use of a dictionary from 1910, it said, is appropriate.  

The definition of “imbecility” given by the trial court and approved by the court of appeals is the following:
A more or less advanced decay and feebleness of the intellectual faculties; that weakness of mind which, without depriving the person entirely of the use of his reason, leaves only the faculty of conceiving the most common and ordinary ideas and such as relate almost always to physical wants and habits. 
Ahem . . . apparently, people talked differently in 1910. It was, after all, a different time. William Howard Taft was President and the maximum speed limit in most cities was 10 – 12 mph.

It may be time for the Legislature to update the statute. 

Dirk Johnson appointed as Injured Employee Public Counsel


This month Governor Greg Abbott appointed Dirk Johnson to serve as Injured Employee Public Counsel. In that role, he will oversee the Office of Injured Employee Counsel which, among other things, provides ombudsmen to assist injured employees at Benefit Review Conferences and Contested Case Hearings. Dirk has a wealth of experience in the industry and has previously served as general counsel to the Texas Department of Insurance, Division of Workers’ Compensation. 

His newest appointment is subject to Senate confirmation. Congratulations, Dirk!
 

Hit the links for a good cause in October


Save the date for the annual Kids’ Chance of Texas golf tournament in Dallas on Monday, October 23rd.  More information will come as the date approaches. In the meantime, if you know of a child of a catastrophically injured worker who may qualify for a Kids’ Chance scholarship, please contact Jane Stone at jstone@slsaustin.com.  She can help!
 

Legal Update by Attorney Alison Stewart and Law Clerk Morgan Todd Borron

When a worker falls at work, and the fall cannot be attributed to an acute event caused by the work (e.g., tripping over an object, slipping on ice or water, losing balance while carrying an object, etc.), the fall will likely fall into one of two categories: idiopathic or unexplained. These types of falls require additional analysis into compensability. An idiopathic fall is one that originates from a purely personal condition to the claimant. See Koehler Elec. v. Wills, 608 N.W.2d 1, 4 (Iowa 2000) (citing Arthur Larson, Workmen’s Compensation Law, sec. 12.11, at 3-356 (1994)); Bluml v. Dee Jay’s, Inc., 920 N.W.2d 82, 84 (Iowa 2018). An unexplained fall is where a claimant trips, slips, or falls for no specifically identifiable reason. Bartle v. Sidney Care, Inc., 672 N.W.2d 333, 2003 WL 22346956 at *2. (Iowa Ct. App. Oct. 15, 2003).

There are different standards that apply to these different types of falls. In Bluml, the worker sustained an idiopathic fall. The Iowa Supreme Court determined that “the claimant should have both the burden and the opportunity to meet the increased-risk test[,]” and “may recover if he or she proves that ‘a condition of his [or her] employment increased the risk of injury.’” Bluml, 920 N.W.2d at 91 (quoting Koehler Elec., 608 N.W.2d at 5). The Court noted that for unexplained falls, the actual-risk rule is the appropriate standard. Bluml, 920 N.W.2d at fn.1.

Under the actual-risk doctrine, an injury is compensable “as long as the employment subjected [the] claimant to the actual risk that caused the injury.” Lakeside Casino v. Blue, 743 N.W.2d 169, 176 (Iowa 2007) (quoting Arthur Larson & Lex K. Larson, Larson’s Workers’ Compensation Law, sec. 3.04, at 3-5 (2007)). “[U]nder the actual-risk doctrine, the injury must result from a condition, risk, or hazard of employment.” Murray as Conservator of Meyers v. Lazer Spot, Inc., No. 21004833.01, 2022 WL 16826433 at *11 (Iowa Workers’ Comp. Comm’n Arb. Dec. July 28, 2022) (citing Lakeside Casino, 743 N.W.2d at 178; Hanson v. Reichelt, 452 N.W.2d 164, 168 (Iowa 1990)).

In Lakeside Casino, the worker was injured after she stumbled while walking down stairs at work. The Iowa Supreme Court stated, “it is a matter of common knowledge that stairs pose an actual risk of stumbling or falling when traversing them, similar to the risk posed by going up and down ladders. Although Blue did not stumble due to any particular defect in or condition of the stairs, it is not necessary under Iowa case law that that the stairs in Blue’s workplace be more dangerous than a typical set of steps. In addition, it matters not that she stumbled through her own inattention. Blue’s misstep was causally related to the fact that she was walking on stairs, and therefore, the Commissioner rationally concluded her injury arose out of her employment.” 743 N.W.2d at 177. The Court found that “Blue stumbled on the stairs, the Commissioner finding that ‘the injury occurred from the hazard of traversing stairs.’ It is this causal relationship between a condition of Blue’s employment—the stairs—and her injury that distinguishes the present case from those in which we have determined the employee’s injury was not compensable” (referring to earlier discussion distinguishing McIlravy, where EE injured knee walking across level floor; Gilbert, where EE arguably injured neck straightening up from signing a document; Miedema, where EE injured back turning to flush toilet; and Musselman, where EE injured back leaning against wall for balance). Lakeside Casino, 743 N.W.2d at 177-178.

In Lapcheske v. Polk Cty., No. 5055505, 2019 WL 7559785 (Iowa Workers’ Comp. Comm’n App. Dec. Nov. 6, 2019), the worker suffered an unexplained fall on a hard floor (described as concrete, marble, or terrazzo throughout the record) resulting in an arm injury. The treating physician opined that claimant’s landing on a hard surface resulted in a “higher-energy fracture than if she would have fallen on carpet” and “elevated the severity” of the fracture; Dr. Bansal opined similarly. Lapcheske, at *3. The Commissioner stated, “Simply put, claimant’s arm was not fractured until it struck defendant’s floor. This factor distinguishes the injury from one that coincidentally occurs at work.” Id. at *4. The Commissioner held that “the hard floor in this case did present an actual risk of injury; in fact, the hard floor even went so far as to increase the risk of injury. Thus, applying the actual-risk doctrine to this case, I find the hard floor was a condition and ultimately a hazard of claimant’s employment.” Id.

In McClain v. Lennox, No. 1664566.01, 2021 WL 2624684 (Iowa Workers’ Comp. Arb. Dec. Apr. 22, 2021), affirmed 2021 WL 4447174 (Iowa Workers’ Comp. App. Dec. Sept. 22, 2021), the worker tripped and fell landing on his right side. He thought he caught his toe on an uneven portion of the cement floor or a corner of a pallet but was not sure. Defendants argued that claimant’s fall was idiopathic or unexplained. The evidence presented at hearing showed that claimant had caught his toe on some kind of crack or obstruction, causing the fall and subsequent injury. McClain, 2021 WL 2624684 at *6. This was affirmed on appeal, with the Commissioner noting “I therefore affirm the deputy commissioner’s finding that claimant’s fall was explained, meaning the resulting injury arose out of and in the course of claimant’s employment.” McClain, 2021 WL 4447174 at *1.

In 2019, there was amendment to Iowa Code section 85.61, adding that “Personal injuries due to idiopathic or unexplained falls from a level surface onto the same level surface do not arise out of or in the course of employment and are not compensable under this chapter.” Iowa Code 85.61(7)(c). In light of the subsequent case law, however, we think application of this amendment is limited to cases where the worker does not hit another object (like a wall, or a desk or shelf) on the way to the ground.

Peddicord Wharton will continue to monitor this evolving area of the law and provide relevant updates.


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Peddicord Wharton Legal Updates are intended to provide information on current developments in legislation impacting our clients. Readers should not rely solely upon this information as legal advice. Peddicord Wharton attorneys would be pleased to answer any questions you may have about this update. ©2023 Peddicord Wharton. All Rights Reserved.