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EROSION BY RICO OF EXCLUSIVE REMEDY OF WORKERS’ COMPENSATION

EROSION BY RICO OF EXCLUSIVE REMEDY OF WORKERS’ COMPENSATION. By Jerry Marcinkoski Michigan Self Insurers’ Assocation Executive Secretary Emeritus Attorney, Of Counsel Lacey & Jones, Birmingham, Michigan. R I C O – What is it? .

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EROSION BY RICO OF EXCLUSIVE REMEDY OF WORKERS’ COMPENSATION

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  1. EROSION BY RICO OF EXCLUSIVEREMEDY OF WORKERS’COMPENSATION By Jerry Marcinkoski Michigan Self Insurers’ Assocation Executive Secretary Emeritus Attorney, Of Counsel Lacey & Jones, Birmingham, Michigan

  2. R I C O –What is it? • “Any person injured in his business OR PROPERTY by reason of a violation of …. may sue therefor in any appropriate United States district court and SHALL RECOVER THREEFOLD THE DAMAGES HE SUSTAINS AND THE COST OF THE SUIT, INCLUDING A REASONABLE ATTORNEY’S FEE …” 18 U.S.C. Section 1964(c).

  3. HOW A SUCCESSFUL RICO SUIT VIOLATES THE WORKERS’ COMPENSATION BARGAIN • Exclusive Remedy Provisions • Federalism/States’ Rights Concerns

  4. THE PLAYERS IN THE RICO CASES • The defendants • The plaintiffs • The amici curiae • Mutually Assured Destruction

  5. BROWN ET AL V CASSENS TRANSPORT CO, CRAWFORD & CO, AND DR. SAUL MARGULES • WC Statute does not foreclose RICO suit • There’s an injury to “property” • So what if the plaintiffs settled their wc cases? • Plaintiffs win (temporarily)

  6. JACKSON ET AL V SEDGWICK CLAIMS MANAGEMENT SERVICES, COCA-COLA ENTERPRISES, INC. DR. PAUL DROUILLARD • En banc decision: 10+1 vs 5 • No injury to “property,” it’s a personal injury • Defendants win • U.S. Supreme Court declines to review or reverse

  7. DANGERS TO STILL BE AWARE OF • Jackson decision did not turn on exclusive remedy or federalism • Indications are that maybe congress could allow federal courts to entertain RICO suits to ensure a fraud-free workers’ compensation scheme • But, right now ALL IS WELL!

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