This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.
Facts
The claimant, Highlands University, began paying the respondent, a worker, total temporary disability benefits in November 1985. In May 1990, Highlands filed a claim to decrease or suspend the worker's benefits and to receive a credit for benefits already paid. The worker was found to be fifty percent permanently partially disabled as of March 1, 1990, and was awarded some medical expenses. The worker's attorney was awarded $12,000 in fees, partly based on the finding that Highlands' claim jeopardized the worker's past benefits (paras 2-3).
Procedural History
- Worker's Compensation Judge (WCJ), March 1990: Found the worker fifty percent permanently partially disabled as of March 1, 1990, granted Highlands a credit for excess benefits paid, and awarded the worker $12,000 in attorney fees (para 2).
Parties' Submissions
- Appellant (Highlands University): Argued that the attorney fee award was excessive because the worker's attorney did not contribute to the recovery of past benefits, which were voluntarily paid by Highlands. They contended that the present value of the award should exclude past benefits (paras 3-4).
- Respondent (Worker): Asserted that the past benefits should be included in the present value calculation because Highlands' claim placed those benefits in jeopardy. The worker argued that preserving past benefits was essential to securing future benefits (para 5).
Legal Issues
- Was the attorney fee award excessive in light of the present value of the award to the worker? (para 3)
- Should past benefits be included in calculating the present value of the award for determining attorney fees? (para 3)
Disposition
- The Court of Appeals reversed the attorney fee award and remanded the case for redetermination of the worker's attorney fees (para 7).
Reasons
Per Hartz J. (Bivins and Minzner JJ. concurring):
The Court held that the worker's attorney could not be credited with the recovery of past benefits because those benefits were voluntarily paid by Highlands before the attorney's involvement. The Court rejected the worker's argument that past benefits were jeopardized, finding that no action was required to preserve them. The financial benefit to the worker was limited to the medical expenses and disability benefits awarded after Highlands filed its claim. The WCJ miscalculated the present value of the worker's benefit and thus abused its discretion in determining the attorney fee award. The case was remanded for a redetermination of the attorney fees (paras 4-7).