Bradley v. Washington Group International

115 P.3d 746, 141 Idaho 655, 2005 Ida. LEXIS 104
Idaho Supreme Court·Decided June 17, 2005·No. No. 31268·Published·Cited by 2 cases

Opinion

SCHROEDER, Chief Justice.

Carl Bradley (Bradley) claims that he is entitled to an award of attorney fees from Defendants-Respondents Washington Group International, fka Morrison Knudsen Corporation, Employer, and Travelers Indemnity Company of Illinois, -Surety (collectively, Washington Group). The Industrial Com[657] mission ordered an award of fees but then denied a fee award. Bradley appealed.

I.

FACTUAL AND PROCEDURAL BACKGROUND

Bradley was employed as a truck driver for Washington Group. In February of 2001, while at work, he slipped and fell on ice striking both his elbows and injuring his shoulders. He was diagnosed with left shoulder impingement and was treated by Dr. Gail Fields, who provided left shoulder acromialplasty with resection of the clavicle and subacromial decompression in May of 2001. Bradley went to Dr. Fields for follow up visits.

In May of 2002 Bradley filed a Workers’ Compensation Complaint with the Industrial Commission (Commission) seeking benefits from Washington Group to compensate him for the injuries to both his left and right shoulders. The Commission determined that Bradley was not entitled to benefits for the injury to his right shoulder, but was entitled to benefits for his left shoulder. The Commission found that Washington Group unreasonably denied benefits for the left shoulder injury after November of 2001 and that Bradley was entitled to an award of attorney fees relating to the left shoulder claim. The Commission’s order requested that Bradley submit an attorney fee memorandum within twenty days of August 29, 2008. Bradley requested an extension of time to file the memorandum, and the Commission granted an extension to October 3. On September 29, Bradley submitted his attorney fee memorandum to the Commission. The memorandum was submitted prior to Bradley’s November 7, 2003 left shoulder surgery that had been determined to be compensable by the Commission.

On July 29, 2004 the Commission denied Bradley his. attorney fees, stating that Bradley failed to provide sufficient information relating to the extent of medical benefits incurred after Washington Group’s denial of further benefits in November of 2001. Bradley filed a motion for reconsideration and submitted another affidavit itemizing expenses incurred after November of 2001. On September 10, 2004, the Commission denied reconsideration, referring again to a failure to submit sufficient information to the Commission upon which it could base an award of attorney fees. Bradley appealed.

II.

STANDARD OF REVIEW

The Industrial Commission’s determination that a claimant is entitled to attorney fees under I.C. § 72-804 is factual in nature and will be upheld where it is based upon substantial and competent evidence in the record. Hoskins v. Circle A Constr., Inc., 138 Idaho 336, 341, 63 P.3d 462, 467 (2003). The Commission has discretion under I.C. § 72-804 to determine the amount of attorney fees to be awarded. Swett v. St. Alphonsus Reg’l Med. Ctr., 136 Idaho 74, 78, 29 P.3d 385, 389 (2001). The Commission held that Washington Group unreasonably denied Bradley compensation for his left shoulder injury and stated that he was entitled to his attorney fees related to that injury, but then denied him attorney fees on the grounds that he did not provide the Commission with sufficient information to support an award. This Court reviews the Commission’s denial of Bradley’s attorney fees for an abuse of discretion.

III.

THE COMMISSION ABUSED ITS DISCRETION BY REFUSING TO AWARD BRADLEY REASONABLE ATTORNEY FEES

Washington Group does not challenge the Commission’s factual finding that it unreasonably withheld compensation to Bradley for his left shoulder injury after November of 2001. Thus, the issue on appeal is whether the Commission, after determining that Bradley was entitled to his attorney fees because of Washington Group’s unreasonable withholding of compensation, could then refuse to award Bradley attorney fees because of what it perceived to be insufficient documentation filed by Bradley to support an attorney fee award. For the reasons set [658] forth below, the Commission abused its discretion when it refused to award Bradley attorney fees.

As set forth in Medrano v. Neibaur, 136 Idaho 767, 40 P.3d 125 (2002), this Court employs a three-part test to determine whether a lower tribunal has abused its discretion. The test is:

(1) Whether the trial court correctly perceived the issue as one of discretion; (2) whether the trial court acted within the outer boundaries of its discretion and consistently with the legal standards applicable to the specific choices available to it; and (3) whether the trial court reached its decision by an exercise of reason.

Medrano, 136 Idaho at 769, 40 P.3d at 127 (citations omitted).

The Commission recognized that its decision as to the amount of attorney fees to be awarded to Bradley was discretionary. However, the Commission did not act “within the outer boundaries of its discretion,” nor did it act “consistently with the legal standards applicable to the specific choices available to it” in denying any award.

Idaho Code § 72-804 states that:

If the commission or any court before whom any proceedings are brought under this law determines that the employer or his surety contested a claim for compensation made by an injured employee ... without reasonable ground, or that an employer or his surety neglected or refused within a reasonable time after receipt of a written claim for compensation to pay to the injured employee or his dependents the compensation provided by law, or without reasonable grounds discontinued payment of compensation as provided by law justly due and owing to the employee or his dependents, the employer shall pay reasonable attorney fees in addition to the compensation provided by this law. In all such eases the fees of attorneys employed by injured employees or their dependents shall be fixed by the commission.

(Emphasis added).

The plain meaning of this statute is that the Commission “shah” award attorney fees to the employee when the Commission makes the determination that the employer’s denial of compensation was unreasonable. Though the amount of the award is subject to the discretion of the Commission, refusing to award any attorney fees where the employer unreasonably denied compensation to the employee is a decision that is beyond the “outer boundaries” of the Commission’s discretion. Idaho Code § 72-804 requires a reasonable attorney fee be awarded to the employee where the employer’s actions were found to be unreasonable. The Commission’s refusal to award attorney fees to Bradley in this case is an abuse of discretion.

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Bradley v. Washington Group International, 115 P.3d 746, 141 Idaho 655, 2005 Ida. LEXIS 104 (Idaho 2005).

115 P.3d 746 (Bradley v. Washington Group International) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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