Graham v. Industrial Commission
Graham v. Industrial Commission
Opinion of the Court
Plaintiff’s husband while temporarily in California and while in the course of his employment lost his life in a head-on collision. Although he lost his life in California, he was employed in Utah, and his dependents are entitled to compensation according to the law of Utah.
Prior to filing a claim with the defendant Industrial Commission, the plaintiff herein retained counsel and settled her case against the driver of the vehicle which was involved in the fatal accident for $95,000. The Industrial Commission then refused to make an award upon the-grounds that plaintiff had already received from the third-party tortfeasor a sum of. money in excess of any possible award to which she would be entitled under the Utah law. 1
Had the Commission first made an award to the plaintiff, the Travelers Insurance Company would have paid the
(1) The reasonable expense of the action, including attorneys’ fees, shall be paid and charged proportionately against the parties as their interests may appear.
(2) The person liable for compensation payments shall be reimbursed in full for all payments made.
. (3) The balance shall be paid to the injured employee or his heirs in case of death, to be applied to reduce or satisfy in full any obligation thereafter accruing against the person liable for compensation.
This court has heretofore held that subsection (1) above requires each party to bear its share of attorney’s fee and expenses before making the distribution of the funds.
, It is clear that had the Industrial Commission made the award required by the statute, the insurance carrier would have been obligated to pay its share of expenses before it could be reimbursed for the money it had paid plaintiff.
Under the rulings made by the Industrial Commission in this case, the plaintiff by her efforts caused an undeserved windfall to the insurance carrier in that it was required to pay nothing whatsoever on its obligation to the plaintiff — not even a proportionate share of the expenses incurred by the plaintiff for the carrier’s benefit.
We can see no reason why there should be any difference in the final result whether the third party pays before or after an award is made.
The matter is remanded to the Industrial Commission with directions to determine the proper award to be made to plaintiff. If the parties cannot agree that the fee charged by plaintiff’s attorney
If the interested parties can agree on the reasonableness of the fee and expenses incurred in connection with recovery from
The plaintiff is entitled to costs including a reasonable attorney’s fee pursuant to Section 35-1-87, U.C.A.1953.
. Section 35-1-54, U.C.A.1953.
. Section 35-1-45, U.C.A.1953.
. Section 35-1-62, U.C.A.1953.
. Worthen v. Shurtleff and Andrews, Inc., 19 Utah 2d 80, 426 P.2d 223. (1967).
.Contingent fee of 25 per cent.
Dissenting Opinion
(dissenting).
I dissent because I think the main opinion is based on “if” assumptions not germane to nor dispositive here. It says that “Had the Commission first made the" award, the Travelers would have paid” it. The Commission made no award because no claim was filed with it until after a third-party settlement amounting to about five times the amount provided as a maximum under the Utah Unemployment Act." The settlement was made without anyone bothering to file a claim, which fact obviously did not comply with the very statute under which they now claim attorneys’ fees, 35-1-62, which requires the filing of a claim with the Commission as a condition precedent to recovery of attorneys’ fees when it says that “If compensation is claimed
Using the same kind of reasoning employed in the main opinión, had' a claim been filed with 'the' Commission,’ th'e likeli
The main opinion suggests that because of applicants’ efforts, the order of the Commission resulted in an undeserved windfall to the carrier. The order did no such thing, since nothing had been before it that would have allowed the Commission to exercise any discretion whatever. If there was a windfall, it was because the applicants, through competent counsel made a settlement, which settlement resulted in the windfall, if any there might be, and the applicants now seek an undeserved windfall by a devious route and what I believe to be an inaccurate reasoning with respect to the construction of the act and the purpose for its existence. (All emphasis added.)
. Which compensation was not claimed.
. There was no determination that the carrier was obligated at all.
. The carrier was never a trustee of the cause of action, although it had the absolute right to choose such status before there could be any splitting of fees.
.The carrier bad no choice in the matter before the applicants procured a settlement.
Reference
- Full Case Name
- Beth Larene Winkler GRAHAM, for Herself and as Guardian of the Estates of Teri Lynn Graham, Et Al., Plaintiffs, v. the INDUSTRIAL COMMISSION of Utah and Ward Foods, Inc., American Sheep Company Division, Defendants
- Cited By
- 10 cases
- Status
- Published