Cassens Transport Co., et al., v. Brown

Case Updates

NCLC urged the Supreme Court to review a decision by the Sixth Circuit that held a claim for compensation for a workplace injury was a claim for injury to “business or property” and thus could be litigated under RICO. In this case, the plaintiffs allege fraud in their medical examinations and in other aspects of handling their worker compensation claims. They contend the alleged fraud deprived them of workers’ compensation benefits that they would have otherwise received under the state administrative process and sued the defendant company under RICO. NCLC argued in its amicus brief that RICO should not apply to workers’ compensation claims because state laws allow compensation only upon proof of a qualifying personal injury. NCLC pointed out that applying RICO to these claims would disrupt the exclusive remedy and exclusive jurisdiction provisions of state workers’ compensation laws that are critical to the statutory scheme. NCLC warned that the Sixth Circuit’s decision threatens to undermine the state workers’ compensation laws that, for almost a century, have provided an efficient means to compensate employees for workplace injuries without imposing debilitating costs on employers.