No Federal RICO Option for Failed State Worker’s Compensation Claims


Plaintiffs who failed in their state worker’s compensation claim cannot sue their employers and their medical experts under federal civil racketeering laws, the en banc 6th U.S. Circuit Court of Appeals has ruled.

The court overruled a 2012 6th Circuit panel’s decision that allowed plaintiffs to sue their employer, worker’s compensation claims administrator and their medical expert under the Racketeer and Influenced and Corrupt Organizations Act (RICO), alleging that the defendants conspired to deny their worker’s compensation claims.

The en banc court ruled that plaintiffs’ expectation of benefits isn’t a sufficient property interest under RICO, which requires an “injur[y] to his business or property.” The court said the plaintiff’s losses are no different than their personal injury claims that were denied in the state administrative proceedings. The court said Congress didn’t choose to enact RICO to supplant the state workers’ compensation system, thus, declined to do so.

>> Read the 6th Circuit's decision in Jackson v. Sedgwick Claims Management.

>> Read our news release about the Jackson decision.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Miller Canfield | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.