Brown v. Sappi Fine Paper

2004 ME 82, 853 A.2d 779, 2004 Me. LEXIS 89
CourtSupreme Judicial Court of Maine
DecidedJune 30, 2004
StatusPublished
Cited by2 cases

This text of 2004 ME 82 (Brown v. Sappi Fine Paper) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Sappi Fine Paper, 2004 ME 82, 853 A.2d 779, 2004 Me. LEXIS 89 (Me. 2004).

Opinion

RUDMAN, J.

[¶ 1] Sappi Fine Paper appeals from a decision of a hearing officer of the Workers’ Compensation Board (McCurry, HO), granting a motion for attorney fees and expenses brought by the law firm of McTeague, Higbee, Case, Cohen, Whitney & Toker, P.A. The fees were awarded in response to a consolidated motion for fees related to thirteen cases in which Sappi had previously paid attorney fees to James MacAdam pursuant to lump settlement agreements.1 The hearing officer concluded that the McTeague firm was entitled to additional fees beyond those already paid to MacAdam for work during a period that MacAdam had been employed by the law firm.2 Sappi contends that McTeague’s [780]*780motions for fees were barred by the lump sum settlement agreements and by a settlement of a related Superior Court action between the McTeague law firm and MacAdam. Sappi also asserts that, because Hearing Officer McCrary's term of office expired prior to his decision on the motion, McCurry lacked de jure or de facto authority to issue the decision. Although we conclude that McCurry had de facto authority to act upon the motion, we conclude that he erred in awarding additional fees against Sappi for the benefit of the McTeague law firm in this case, and vacate the decision.

I. BACKGROUND

[¶ 2] This appeal arises from a consolidated decision involving thirteen employees who settled their workers’ compensation claims against their employer, Sappi, for lump sums.3 Each of the thirteen employees retained MacAdam as counsel who, at the commencement of the litigation, was employed by the McTeague law firm. In April 2000, MacAdam withdrew from the law firm, and many of his former clients, including all those in the present appeal, continued to retain him to represent them. Shortly after MacAdam left the McTeague law firm, the thirteen employees settled their claims against Sappi for lump sums. The settlements provided for the payment of attorney fees to MacAdam for his services rendered to the employees resulting in the lump sum settlements.

[¶ 3] Meanwhile, the McTeague law firm filed a civil action in the Superior Court against MacAdam raising several claims, including conversion, breach of fiduciary responsibility and diversion of corporate opportunity, unjust enrichment, and misappropriation of trade secrets. As one of its remedies McTeague sought recovery of a portion of any prospective fee awards to MacAdam in connection with any cases on which MacAdam had worked while with McTeague.

[¶ 4] In June 2001 McTeague and MacAdam settled the Superior Court action. McTeague, Higbee et al. v. James J. MacAdam et al, CV-00-249 (Me. Super Ct., Cum. Cty., June 1.2001) (WarrenJ.). The order approving the settlement specifies that the agreement and documents would be confidential, and that the Superior Court would “retain jurisdiction for the exclusive purpose of administering and enforcing the terms of this Order, including without limitation, jurisdiction to consider and act upon requests by any person relating to the Stipulation and Confidentiality Order.”

[¶ 5] In early May 2001 McTeague sought an award of fees and disbursements in the thirteen cases that had been settled by MacAdam.4 Hearing Officer McCurry was the hearing officer assigned to the case. His term of office expired on December 31, 2002. In January 2003 the parties received a letter from the Executive Director and the Chief Hearing Offi[781]*781cer of the Board, notifying the parties of a potential issue concerning McCurry’s authority, and giving the parties an opportunity to object within 10 days. The letter explained that in the absence of a response the Board would “assume that there is no objection” and schedule the hearing before McCurry. Sappi responded within ten days, making a general objection to Hearing Officer McCurry’s authority. Notwithstanding this objection, Hearing Officer McCurry proceeded to consider the fee motions,5 and ultimately granted them.6

[¶ 6] Sappi filed a motion for further findings of fact and conclusions of law, challenging the hearing officer’s authority to decide the case, in light of the expiration of his term on December 31, 2002. The hearing officer adopted the employees’ proposed findings of fact and conclusions of law, concluding that he retained authority to decide the motion for fees. We granted Sappi’s petition for appellate review pursuant to 39-A M.R.S.A. § 322 (2001).

II. DISCUSSION

A. The Hearing Officer’s Authority

[¶ 7] As a preliminary matter, Sap-pi contends that Hearing Officer McCurry lacked de jure or de facto authority to decide McTeague’s motion for fees and costs. We disagree.

[¶ 8] In two recent opinions, we have addressed the issue of a hearing officer’s de jure and de facto authority. In D 'Ama-to, we held that former Hearing Officer Johnson had de facto authority to decide a case when all evidentiary hearings had been conducted prior to the expiration of her term. D’Amato v. S.D. Warren Co., 2003 ME 116, ¶ 18, 832 A.2d 794, 801. In Little v. Knowlton Machine Company, we held that Hearing Officer McCurry did not have de facto authority to decide a case when the hearing was held after the expiration of his term and the employer had made a timely objection. 2004 ME 3, ¶¶ 10-11, 840 A.2d 97, 99.

[¶ 9] We conclude that the issue of a hearing officer’s authority to decide an ancillary motion, such as a motion for fees and expenses, is more akin to D Amato than Little. When a hearing officer’s term has expired after a final decision on the merits of a case but prior to an award of fees, the attorney’s work has already been performed prior to the expiration of the hearing officer’s term. Even though some additional evidence may be necessary to determine a fee award in such a situation, the former hearing officer who decided the case had the best opportunity to evaluate the conduct and course of the case and is in the best position to evaluate the quality of the attorney’s work and the benefit conferred upon the employee from that representation. It would make little sense to appoint a new hearing officer who is otherwise unfamiliar with the case for the limited purpose of awarding attorney fees and expenses.

[¶ 10] In the present case, the underlying settlements had been entered long before the expiration of McCurry’s term. The only remaining issue was the motion concerning attorney fees, which had been pending nearly two years before the expiration of McCurry’s term. The only remaining work on this motion after Decem[782]*782ber 31, 2002, was a decision on Sappi’s related discovery request and a decision on the motion. We conclude that Hearing Officer McCurry had de facto authority to consider the pending motions after the expiration of his term.

B. The Fee Award

[¶ 11] For Curt Brown’s date of injury — which the parties have stipulated is representative of all thirteen cases— entitlement to employer-paid attorney fees is governed by former title 39, section 110 (1989), repealed and replaced by P.L.1991, ch. 885, §§ A-7, A-8 (codified as 39-A M.R.S.A. § 325 (2001)).

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Cite This Page — Counsel Stack

Bluebook (online)
2004 ME 82, 853 A.2d 779, 2004 Me. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-sappi-fine-paper-me-2004.