No specific laws identified for this ruling.
The Ninth Circuit affirmed the district court's ruling that a FECA beneficiary cannot deduct litigation costs from the refund owed to the United States after recovering damages from a third-party tortfeasor. Durand must refund his FECA benefits without a second deduction for litigation costs.
Durand v. United States Department of Labor
What Happened
A worker who received benefits under the Federal Employees' Compensation Act (FECA) settled a legal case and received money. The worker then owed a refund to the Department of Labor and disagreed about how to calculate it. The worker wanted to subtract their legal costs from the refund amount, but the Department of Labor said the legal costs should only be subtracted from the original settlement payment, not the refund.
What the Court Decided
The appeals court sided with the Department of Labor. The court ruled that workers cannot reduce their refund obligations by deducting legal fees from it. Instead, legal costs can only be subtracted from the gross settlement amount first.
Why This Matters
This ruling affects workers who receive federal employee injury benefits and later win settlements. It clarifies that while legal expenses reduce the net amount they keep from a settlement, those deductions don't lower what they owe back to the government. Workers in similar situations should understand they may owe more to the Department of Labor than they initially expect.
This summary was generated to explain the ruling in plain English and is not legal advice.
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