News Digest 8/14/2008

By: Rick Waldinger

Quote of the day

"The legislation, perhaps unintended, has created an environment that could cause group self-insurance programs to be noncompetitive going forward."

Richard S. Flaherty, president and chief executive officer for Latham, N.Y.-based First Cardinal LLC

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N.Y. Legislator Asks Governor to Spare Workers’ Comp Center
New York Assemblywoman Barbara Lifton calls on Gov. David Paterson to reconsider his recommendation to close the Ithaca Workers’ Compensation Service Center, saying it would inconvenience injured workers, perhaps cause them pain and likely force them to travel to see an attorney. Ithaca Journal
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Workers’ Comp Claim Alleges Hostile Work Environment
Coachella Valley Mosquito and Vector Control District General Manager Donald Gomsi was the victim of a hostile work environment at the public agency, according to a workers’ compensation claim that alleges injuries to his “psyche” and internal injuries such as ulcers and heart problems. By Keith Matheny, Desert Sun (Palm Springs)
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Illinois Suit Alleges Retaliation
A Belleville, Ill., woman claims her former employer wrongfully discharged her in retaliation for seeking workers’ compensation benefits. The two-count lawsuit seeks in excess of $100,000 in compensatory and punitive damages for lost income and pain, as well as for the alleged willful and wanton conduct of defendant. By Ann Knef, Madison Record
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Western New York Couple Charged with Defrauding PEOs
A federal indictment charges a Western New York couple that operated an insurance business with marketing, to professional employer organizations, unlawful and invalid workers’ compensation policies. North Country Gazette
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BP Says It Is Adhering to Post-Texas City Safety Mandates
Attorneys for BP argue in a court filing that the oil giant is complying with required safety improvements ordered by Fed-OSHA and state regulators in the aftermath of the deadly 2005 explosion at its Texas City refinery. Lawyers for blast victims say the company is blowing off requirements to improve safety at the plant. By Kristen Hays, Houston Chronicle
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Eleven New York Workers’ Comp Trusts to Dissolve
Trustees for 11 group workers’ compensation self-insurance trusts administered by First Cardinal LLC. conclude that, following recent New York legislative changes, it would be prudent to dissolve. By Roberto Ceniceros, Business Insurance
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