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Member, Beacon International Group, Ltd.
WASHINGTON—The U.S. Supreme Court has declined to review a controversial appeals court decision that allows workers compensation claimants to sue an employer and its third-party administrator under federal racketeering law.
The Supreme Court declined to review the case Monday, letting stand an October ruling by the 6th U.S. Circuit Court of Appeals in Paul Brown et al. vs. Cassens Transport Co. et al. that several employees could pursue their lawsuit alleging mail and wire fraud violations of the federal Racketeer Influenced and Corrupt Organizations Act against their employer and its third-party administrator.
Their allegations against self-insured Cassens Transport, based in Edwardsville, Ill., stemmed from the denial of their claims. The group alleges that Cassens Transport and Crawford & Co. used unqualified doctors to give fraudulent medical opinions supporting denial of their workers compensation claims. The workers also allege the company, the TPA and doctors committed mail and wire fraud in their communications.
Attorneys and employer groups have criticized the appeals court decision, arguing among other things that it provides an avenue for federal courts to rule on workers comp claims decisions and that the ruling will raise costs.
The case now returns to a lower court for trial.