United States Sixth Circuit Court of Appeals; Docket No. 79-1667; Published
Judges Edwards, Kennedy and Horton; Per Curiam
Official Federal Reporter Citation: 653 F 2d 229; Link to Opinion
STATUTORY INDEXING:
Not Applicable
TOPICAL INDEXING:
Federal Workers Compensation Benefits
Legislative Purpose and Intent
CASE SUMMARY:
In this per curiam Opinion, the United States Sixth Circuit Court of Appeals affirmed the US District Court in Item No. 325 and held that under the reimbursement provisions of the Federal Workers' Compensation Act (FECA, 5 USC 8132), a federal employee who obtains an automobile tort recovery for noneconomic losses under Michigan's No-Fault Act can be validly required to pay back the federal government for economic losses which were compensated by federal compensation benefits. In reviewing the purposes of the federal statute, the court noted that under certain administrative rules which had been promulgated pursuant to the Act, an employee was entitled to retain one-fifth of the net amount of the recovery after payment of expenses and attorney fees. This is an administrative safeguard to "prevent injustice to the federal employee in an instance where recovery from a third party, by dint of attorney, fees or other costs, would have been entirely or substantially wiped out by the FECA claim."