December 11, 2009
Did you know...?
United States Supreme Court has denied Cassen’s Certeori Petition
The U.S. Court of Appeals (Sixth Circuit) ruled in October 2008 that six employees of Cassens Transport could proceed with their Racketeer Influenced and Corrupt Organizations Act (RICO) suit, alleging that Cassens, its TPA for workers’ compensation, and a doctor, engaged in an illegal scheme to deny the employees benefits for workplace injuries. Cassens subsequently petitioned the Supreme Court to review the decision of the Court of Appeals.
The National Council of Self-Insurers (NCSI) filed an Amicus brief with the Supreme Court in support of Cassens. The brief stated that if the appellate decision holds, employees, who say they are injured at work, will be able to prosecute RICO actions in state and federal courts as well as actions in workers’ compensation courts.
In response to the Supreme Court decision to deny the petition, the following are comments by a defense attorney and a claimant’s attorney, which appeared in WorkCompCentral.
Scott Stolley, of Dallas, who chairs the amicus curiae committee for the Defense Research Institute said, “RICO actions offer the potential for treble damage liability and attorney fees, if the plaintiff prevails. The potential for such damages alone will probably attract a plethora of frivolous lawsuits.”
Jon Gelman, a New Jersey claimant’s attorney, said, “It’s a landmark decision because never before have you had such availability to attack procedures and tactics by insurance companies, defense medical experts, and employers themselves. It’s very, very, very significant. They are national insurance companies that you are dealing with now so the impacts are going to be felt across the entire country.”
Dwight Kay, Executive Vice President and General Counsel of Cassens Transport, informed NCSI that lawsuits, similar to the suit against Cassens, have been filed against United Parcel Service and the Coca-Cola Company.
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