Webster v. Bath Iron Works
Webster v. Bath Iron Works
Opinion of the Court
[¶ 1] Bath Iron Works [“BIW”] petitions from a decision of the Workers’ Compensation Board granting Carl Webster’s motion for attorney’s fees. The issue is whether attorney’s fees awarded pursuant to 39 M.R.S.A § 110(2) (1989), repealed by P.L. 1991, ch. 885, § A-7, must be offset by the amount of attorney’s fees awarded pursuant to the federal Longshore and Harbor Workers’ Compensation Act [“LHWCA”], 33 U.S.C. §§ 901-950 (1994), for duplicative work. See Parker v. Bath Iron Works Corp., 644 A.2d 1037, 1039-10 (Me. 1994). Because we agree with BIW that Webster’s counsel is not entitled to duplicative attorney’s fees for identical work performed in the federal and state proceedings, we vacate the decision of the Board.
[¶ 2] Carl Webster suffered two work-related injuries on February 3, 1988 and June 19, 1989, respectively, while employed by BIW. Webster filed claims pursuant to the LHWCA and the Maine Act, but chose to litigate the claim pursuant to the LHWCA After considerable time and effort in the federal system, the parties agreed to a lump-sum settlement of the employee’s claim for both injuries in the amount of $95,000. Webster’s counsel sought roughly $12,000 in fees for services rendered in the federal system and provided supporting billing documentation. The federal Administrative Law Judge awarded $10,274 in fees.
[¶ 3] After the federal settlement, the Board summarily confirmed a lump sum settlement agreement of the employee’s state law claim in the same amount, to be offset against the employee’s recovery under the Harbor Workers’ Act. See Parker, 644 A.2d at 1039-10. Webster requested additional fees from the Board and offered an itemized bill for services as supporting documentation. The Board granted the motion for fees without receiving the employee’s supporting documentation, and awarded a fee in the amount of ten percent of the settlement amount ($9,500), stating:
The employer/insurers have objected to this request arguing that Mr. Webster has been paid ample attorneys fees under the Longshore and Harbor Workers’ Compensation Act. By all accounts, Mr. Webster’s attorney’s efforts under the Maine Workers’ Compensation Act have not been extensive. The employer/insurers argue, therefore, that Mr. Webster has received a reasonable sum for attorney’s fees.
Mr. Webster argues that any attorneys’ fees he received for legal work pursuant to the Longshore and Harbor Workers’ Compensation Act is irrelevant for determining appropriate fees under the Maine Workers’ Compensation Act. I agree. The applicable section of the Maine law is 39-A M.R.S.A. § 325. The fee reported by Mr. Webster falls within the statutory guidelines. Therefore, that sum is hereby awarded....
The Board denied BIWs motion for findings of fact, and we granted BIW’s petition for appellate review pursuant to 39-A M.R.S.A § 322 (Supp. 1997).
[¶ 4] Contrary to the Board’s conclusion, Webster’s entitlement to attorney’s fees is not governed by 39-A M.R.S.A. § 325. Section 325 is expressly listed in the implementing statute, section A-10, as prospective in application and does not apply retroactively to either of the employee’s dates of injury. P.L.1991, ch. 885, § A-10.
If an employee prevails on any proceeding involving a controversy under this Act, the Commission ... may assess the employer costs of a reasonable attorney’s fee....
A. For the purposes of this subsection, “prevail” means to obtain or retain more compensation or benefits under the Act than were offered to the employee by the employer in writing before the proceeding was instituted. If no such offer was made, “prevail” means to obtain or retain compensation or benefits under the Act.
39 M.R.S.A. § 110(2), repealed by P.L.1991, eh. 885, § A-7.
[¶ 5] We have previously recognized a general prohibition against double recoveries of workers’ compensation benefits in different jurisdictions. See e.g., LaPointe v. United Eng’rs & Constructors, 680 A.2d 458, 460 (Me., 1996) (Offset for duplicative state recoveries); Webber v. Bath Iron Works Corp., 656 A.2d 748, 749 (Me. 1995) (Offset for duplicative recoveries in Maine and pursuant to the LHWCA); Parker, 644 A.2d at 1039-40; Bouford v. Bath Iron Works Corp., 514 A.2d 470, 474 (Me. 1986), cert. denied, 479 U.S. 1065, 107 S.Ct. 951, 93 L.Ed.2d 1000 (1987); Stockford v. Bath Iron Works Corp., 482 A.2d 843, 845 (Me. 1984). Although we have never addressed the issue of duplicative attorney’s fees in concurrent jurisdictions, we see no reason to depart from the general rule prohibiting double recoveries.
[¶ 6] Webster’s counsel is not prohibited, however, from receiving a reasonable fee pursuant to the Maine Act for separate services related solely to the litigation of Webster’s state law claim.
The entry is:
The decision of the Workers’ Compensation Board is vacated. Remanded to the Workers’ Compensation Board for further proceedings consistent with the decision herein.
. Section A-10 provides: "So as not to alter benefits for injuries incurred before January 1, 1993, for matters in which the injury occurred prior to that date, all the provisions of this Act apply, except that ... Title 39-A, sections 211, 212, 213, 214, 215, 221, 306, and 325 do not apply.” P.L.1991, ch. 885, § A-10 (emphasis added). Because section 325 is listed as having purely prospective effect, it does not apply retroactively to pre-1993 injuries.
. Contrary to Webster’s contention, our decision in LaPointe, 680 A.2d at 461, is not controlling. In that case, we held that an employee’s compensation in one jurisdiction cannot be reduced by an award of attorney’s fees in another jurisdiction. Id. Unlike the employers in LaPointe, BIW is not seeking a setoff of attorney’s fees against compensation, but a setoff of attorney’s fees against attorney’s fees.
. In this case, Webster settled his state law claim for $95,000. The entire amount of this settlement, however, was offset by the federal award. It was therefore to the employer's benefit to settle the state law claim in the same amount. Because BIW conceded that, Webster “prevailed” pursuant to 39 M.R.S.A. § 110(2)(A), repealed by P.L.1991, ch. 885, § A-7, we do not address that issue on appeal.
Reference
- Full Case Name
- Carl WEBSTER v. BATH IRON WORKS
- Status
- Published