The United States Court of Appeals Appeals Issued a Decision in Michigan with Far Reaching Effects

This is a very significant case for workers’ compensation principles.

This newsletter usually only reports on cases decided in California. This case was decided in a United States Court of Appeal regarding entitlement to workers’ compensation benefits under Michigan law. This decision will apply to California law as well. The case revolved around an alleged systematic attempt by the workers’ compensation carrier to deny benefits. The appellants in this case alleged a Racketeer Influenced and Corrupt Organizations Act (RICO) suit.

They alleged fraudulent denial of worker’s compensation benefits. They alleged among other things that the carrier employed a physician to deliberately deny benefits.

The appellate court indicated that even though state law punished the improper denial of benefits the appellants could still bring a RICO suit because that is under federal law.

Here the case was allowed to proceed because the RICO claims were not preempted by state law and because plaintiffs adequately pleaded a pattern of racketeering.



Editor: Harvey Brown

Firm: Samuelsen, Gonzalez, Valenzuela and Brown

Address: 3501 Jamboree Suite 602, NB 92660

Phone: 949 252-1300

Case: Brown vs. Cassens Transport, Crawford and Company and Dr Saul Margules
This is a United States Court of Appeal case

Harvey Brown
3501 Jamboree Rd. Suite 602
Newport Beach, CA 92660

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