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Tennessee restaurateurs face assessments for depleted workers’ comp fund

NASHVILLE Tenn. Restaurateurs across Tennessee could face assessments of thousands of dollars apiece to shore up a workers’ compensation fund that the state Department of Commerce and Insurance alleges was mismanaged by the head of the Tennessee Restaurant Association.

The state is suing Ronnie Hart, the TRA’s longtime president and chief executive, claiming he received excessive fees for administrating the organization’s workers’ compensation fund and for dipping into reserves without authorization. Hart, who apparently managed the fund through a private company he controls, has publicly denied any wrongdoing. He did not respond to calls seeking further comment.

Hart remains the TRA’s chief after the association’s board voted 7-4 to retain him, according to director and Nashville restaurateur Randy Rayburn.

The fund, which was formed by the TRA in 1993 as a trust to provide workers’ compensation insurance for its members, has been under state control since 2005.

In recent weeks, about 200 restaurateurs have attended meetings across the state to hear presentations from auditors to determine what their individual liabilities could be.

The Department of Commerce and Insurance said about 500 association members need to bolster the fund in order to cover a $4.8 million shortfall needed to pay injured workers.

Ahearing Wednesday in Davidson County Chancery Court in Nashville is set to determine if and how much the restaurateurs will be held accountable for the $4.8 million, as well as whether a Brentwood, Tenn.-based insurer will be allowed to oversee the trust.

The department recently announced it signed a deal to transfer the trust liabilities to Brentwood National Insurance Co., but that decision was blocked Monday by Chancery Court Chancellor Claudia Bonnyman.

Agroup of TRA members, including Rayburn and three others in current or former leadership positions, have questioned whether the unrated Brentwood concern is solvent enough to cover future liabilities. The group has hired a claims consultant to review the issue and is asking the Department of Commerce and Insurance to consider additional providers.

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