EROSION BY RICO OF EXCLUSIVE

REMEDY OF WORKERS’COMPENSATION

ByJerry Marcinkoski

Michigan Self Insurers’ AssocationExecutive Secretary Emeritus

Attorney, Of Counsel Lacey & Jones, Birmingham, Michigan

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).

HOW A SUCCESSFUL RICO SUIT VIOLATES THE WORKERS’

COMPENSATION BARGAIN

Exclusive Remedy Provisions Federalism/States’ Rights Concerns

THE PLAYERS IN THE RICO CASES

The defendants The plaintiffs The amici curiae Mutually Assured Destruction

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)

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

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!