MILLER AND MILLER CONSTR. CO. v. Madewell
MILLER AND MILLER CONSTR. CO. v. Madewell
Opinion
The saga continues. For the fifth time, we are confronted with an appeal in which it is contended that the trial court has erred in determining a claim made by Miller and Miller Construction Company, Inc. ("the employer"), to subrogation as to funds recovered by its employee, Gary Wayne Madewell ("the employee"), in a separate third-party tort action. See Miller MillerConstr. Co. v. Madewell,
The full procedural history of this case is no longer susceptible to a concise summary, and it is in large measure no longer pertinent to the few remaining issues; thus, we refer those readers desiring a fuller understanding of the case to the previous reported opinions cited above. Suffice it to say that inMiller IV our detailed mandate directed the trial court on remand to perform the following tasks:
Employer's reduced liability = X(1) calculate the employer's gross future-medical-expense credit by (a) dividing the "net third-party recovery from Kaydon" ($388,075.40) by "the proper amount of the employee's potential third-party damages," a figure equaling $922,493.78 plus the amount of any future medical expenses, which can be obtained by considering "the annual amount of the employee's medical expenses multiplied by his life expectancy" of 34.7 years, and then (b) multiplying the amount of employee's future medical expenses by that quotient (i.e., the "recovery fraction") (see Miller IV,
878 So.2d at 1180 );(2) calculate the employer's net future-medical-expense credit by subtracting from the gross future-medical-expense credit "the employer's pro rata share of the attorney fees and costs reasonably incurred in the employee's third-party action," a share that, we said, could be ascertained by determining the variable "X" in the following formula:
Third-party recovery Atty. Fees Expenses
(see Miller IV,
(3) add the $11,924.67 in past medical expenses previously repaid to the employer's insurance carrier to the net future-medical-expense credit to obtain "the proper aggregate amount of the employer's credit" as to the employee's medical expenses (see Miller IV,
878 So.2d at 1181 ).
On remand, the trial court entered a judgment on January 21, 2004, that by and large is in conformity with our mandate inMiller IV. In that judgment, the trial court determined that the employee's future medical expenses would total $128,475.01. Adding that figure to the employee's other hypothetical third-party damages of $922,493.78 indicates that the trial court has now determined the proper amount of the employee's potential third-party damages to be $1,050,968.79, which is considerably different from the $1,581,283.80 figure that we concluded to be erroneous in Miller IV. Dividing the $388,075.40 net recovery from Kaydon by the new potential third-party damages figure of $1,050,968.79 results in a "recovery fraction" that, expressed as a percentage, equals approximately 37 percent, and the trial court computed the employer's gross future-medical-expense credit to be $47,535.75.
The employer has again appealed; however, its current appeal does not challenge the trial court's determinations of the employee's potential third-party damages, the "recovery fraction," or the gross future-medical-expense credit. Although the employee asserts in his appellate brief that the trial court "inadvertently" omitted an additional $621,920, purportedly representing compensation for "future pain, suffering, and mental anguish," in determining the employee's potential third-party damages, he did not challenge that omission in the trial court, and he did not cross-appeal from the trial court's January *Page 736
21, 2004, judgment. Because the employee is attacking the trial court's judgment "`"with a view . . . to enlarging his own rights thereunder,"'" H.C. Schmieding Produce Co. v. Cagle,
The employer does attack the correctness of the trial court's determination, in its January 21, 2004, judgment, that the employer's net future-medical-expense credit amounts to $2,974.28. Specifically, the employer, in this appeal, alleges that the trial court erred in determining the employer's prorata share of the attorney fees reasonably incurred in the employee's third-party action because that court inserted $128,475.01 (the employee's anticipated future medical expenses), rather than $47,535.75 (the gross future-medical-expense credit), into the numerator position of the left fraction of the mathematical proportion used for calculating that pro rata share (i.e., the "employer's reduced liability" figure), thereby resulting in an improper reduction of the employer's net credit. We agree.
In Miller IV, restating the effect of the attorney-fee formula set forth by this court in Fitch v. Insurance Co. ofNorth America,
Now that the trial court has conclusively determined the gross future-medical-expense credit to be $47,535.75, it is clear that the employer's pro rata share of the litigation expenses is actually $16,487.50, which is the result of multiplying $47,535.75 (the gross future-medical-expense credit) by $138,737.68 (the attorney fees and costs from the third-party action) and then dividing by $400,000 (the Kaydon settlement amount). Because the trial court instead determined the employer's pro rata share of the litigation expenses to be $44,561.47, the trial court erred, and that portion of its judgment is, therefore, reversed.
The employer also contends that the trial court erred in awarding the employee an additional attorney fee of $4,966.32. The employee has offered no argument on appeal in support of that award, and we conclude that the employer's contention is well-taken. Under Alabama law, an employer entitled to reimbursement for compensation, medical expenses, and vocational expenses it has expended on behalf of an injured employee isalready allocated its proper share of its employee's attorney fees reasonably *Page 737
incurred in third-party tort actions by application of the formula set forth in Fitch and adopted in Tiffin. In contrast, the trial court's award of an additional attorney fee to the employee in this case is not authorized by Fitch,Tiffin, or the text of §
It is the usual practice for this court, upon a reversal of a trial court's judgment in a particular cause, to remand the cause for the entry of a judgment consistent with our opinion. However, this court also has the power, on reversal, to render and "enter such judgment or decree as the court below should have entered or rendered when the record enables it to do so." Ala. Code 1975, §
Under Miller IV, the actual net value of the employer's future-medical-expense credit is equal to the gross value of that credit ($47,535.75) minus the amount of the employer's pro rata
litigation costs ($16,487.50), which is $31,048.25. The employer's aggregate medical-expense credit is equal to the net future-medical-expense credit of $31,048.25 plus the cost of the employee's past medical expenses already paid by the employer ($11,924.67), which is $42,972.92. In conformity with our decision in Miller IV, it is the judgment of this court that "the employer shall be responsible for payment of the employee's reasonable and necessary medical expenses related to his work-related injury only after the total of those expenses accrues to an extent that that aggregate amount," i.e., $42,972.92, "is exceeded."
REVERSED AND JUDGMENT RENDERED.
CRAWLEY, THOMPSON, and MURDOCK, JJ., concur.
YATES, P.J., concurs in the result, without writing. *Page 738
Reference
- Full Case Name
- Miller and Miller Construction Company, Inc. v. Gary Wayne Madewell.
- Cited By
- 1 case
- Status
- Published