Smith v. City of Sauk Centre
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Smith v. City of Sauk Centre
Opinion of the Court
OPINION
This workers’ compensation matter comes before this court by certiorari on the relation
Carol J. Smith sustained a compensable low back injury on May 20, 1994, while employed by the City of Sauk Centre as a part-time emergency medical technician. She reinjured her low back on July 7, 1995, while employed at a second part-time job as a chemical dependency technician at the Central Minnesota Mental Health Center. Smith filed a claim petition against Sauk Centre and Central Minnesota Mental Health Center for wage loss benefits, permanent partial disability benefits, and medical expenses. Sauk Centre denied primary liability. Following a hearing, the compensation judge found that the July 7, 1995, injury was compensable, that Smith was entitled to wage loss benefits as a result of that injury, that all of the disputed medical care was reasonably required, and that Smith was entitled to 26 weeks of economic recovery compensation pursuant to Minn.Stat. § 176.101, subd. 3t(b) (1994).
Smith’s attorney subsequently petitioned for fees under Minn.Stat. § 176.191 (1994) or, in the alternative, Roraff fees plus partial reimbursement of the fees paid pursuant to Minn.Stat. § 176.081, subd. 7 (1994). The compensation judge denied the petition for attorney fees without making any factual findings. However, the judge concluded that contingency fees deducted from the compensation award did not result in inadequate compensation and that the dispute was not “primarily” between insurers. On appeal, the WCCA affirmed, albeit reluctantly, stating: “the compensation judge’s decision is not clearly unreasonable and it is well within the discretion granted to compensation judges in matters involving the assessment of an appropriate amount of attorney fees to be awarded in a case.” Smith’s attorney has sought review of the denial of Roraff attorney fees, contending that where the award of all of the claimed medical benefits amounted to $4,115.03 of her client’s total benefits recovery of $11,077.37, the $1,592.40 allowed as contingency fees was inadequate given the time and effort spent on the claim. The contingency fee appears to be calculated solely on the wage loss and permanent partial disability benefits award of $6,962.34 (i.e., 25% of the first $4,000 plus 20% of $2,962.34 or $1,000 plus $592.48). Although the medical benefits were fully awarded to Smith, no attorney fees were allowed by the compensation judge for those efforts or results.
Under the applicable law, in proceedings brought solely to recover medical benefits, reasonable attorney fees may be assessed against the employer/insurer. Roraff, 288 N.W.2d at 15; Minn.Stat. § 176.135, subd. 1(d) (1994). In proceedings where a medical benefits dispute is resolved simultaneously with a dispute over monetary benefits, Roraff fees are not allowable unless the disallowance would result in inadequate compensation to the attorney. Kopish v. Siverton Fisheries, 39 Minn. Workers’ Comp. Dec. 316 (WCCA 1987); Minn.Stat. § 176.081, subd. 1 (1994). The statutory scheme for approval of attorney fees assessed against the employer/insurer requires that the determination of the fee “be done with the same care as the determination of any other fact question in the matter”
Reversed and remanded.
The Relator is also awarded $400 in attorney fees on this appeal.
.- See Roraff v. Dep't of Transp., 288 N.W.2d 15 (Minn. 1980).
. Repealed, Act of May 25, 1995, ch. 231, art. 2, § 110, 1995 Minn. Laws 1977, 2072.
. Repealed, Act of May 25, 1995, ch. 231, art. 1, §§ 36(b) and 37, 1995 Minn. Laws 1977, 1998-99.
. Minn.Stat. § 176.081, subd. 5(e) (1994), repealed, see supra note 2.
.As amended, effective October 1, 1995, Minn.
Reference
- Full Case Name
- Carol J. SMITH, Relator v. CITY OF SAUK CENTRE, Self-Insured/ Berkley Administrators, Central MN Mental Health Center, and Dodson Insurance Company, and St. Michael's Hospital, MN Department of Human Services, Intervenors
- Cited By
- 1 case
- Status
- Published