East Coast Tire Co. v. Denmark

381 So. 2d 336
CourtDistrict Court of Appeal of Florida
DecidedMarch 25, 1980
DocketPP-482
StatusPublished
Cited by18 cases

This text of 381 So. 2d 336 (East Coast Tire Co. v. Denmark) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
East Coast Tire Co. v. Denmark, 381 So. 2d 336 (Fla. Ct. App. 1980).

Opinion

381 So.2d 336 (1980)

EAST COAST TIRE COMPANY and the Home Insurance CO., Appellants,
v.
Charlie J. DENMARK, Appellee.

No. PP-482.

District Court of Appeal of Florida, First District.

March 25, 1980.

*337 Robert C. Cooper, of Cooper & Rissman, Orlando, for appellants.

Edward H. Hurt, and Bill McCabe, of Shepherd, McCabe & Cooley, Orlando, for appellee.

PER CURIAM.

The employer/carrier appeals a worker's compensation order entered October 17, 1979, approving a retainer agreement between the claimant and his attorney. Standing to appeal is based on the fact that the appellant carrier is required to control the method of payment. The appeal presents issues of first impression and requires judicial construction of § 440.34, Fla. Stat. (1979).

Claimant was injured on September 12, 1979, and consulted and retained counsel on September 28, 1979. A claim was filed for compensation at a rate higher than that at which temporary disability benefits had already been furnished, and the carrier scheduled claimant's deposition. On those facts, without other evidence, the order now appealed was entered, requiring appellant/carrier to retain and pay periodically to claimant's attorney a percentage of "all monies paid to the claimant."

Appellants contend that the order imposing that burden on them should be reversed on several grounds: (1) it is premature and void under § 440.34(1), Fla. Stat., because it approves a fee agreement "in advance of the prosecution of the claim and the obtention of benefits"; (2) the contract should not have been approved because the fee was excessive and illegal; (3) the contract violates public policy because it makes no distinction as to benefits not in controversy on which the percentage fee is based; and (4) the statute does not provide or permit the order's provision for continuing administrative duties by the appellant carrier in remitting fees to the attorney. We reverse on grounds 2 and 4, and on point 1 our construction of § 440.34(1) rejects both appellee's contention that it is inapplicable and appellants' contention that it forbids approval *338 of any fee agreement before successful prosecution of a claim. We find no necessity for treatment of the policy argument on point 3, and remand for further proceedings in compliance with our construction of the statute.

Section 440.34(2), Fla. Stat. (1979), now provides that "a claimant shall be responsible for the payment of his own attorney's fees" except in three specific instances not affecting the issue in this case. Another subsection also provides a misdemeanor penalty for any person who "receives any fees ... unless such consideration ... is approved by the deputy commissioner." § 440.34(4). The 1979 legislative act repealed the former provision of § 440.34(2) that "in awarding a reasonable attorney's fee, the judge ... shall consider only that portion of the award to the claimant that the attorney is responsible for securing." It also repealed the specific requirement for "the successful prosecution of the claim" by an attorney claiming a fee. Section 440.34(1) now states:

No fee ... shall be paid for services rendered for a claimant in connection with any proceedings arising under this chapter, unless approved as reasonable by the deputy commissioner ... Except as provided by this subsection, any attorney's fee approved by a deputy commissioner shall be equal to 25 percent of the first $5,000 of the amount of the benefits secured, 20 percent of the next $5,000 of the amount of the benefits secured, and 15 percent of the remaining amount of the benefits secured. However, the deputy commissioner shall consider the following factors in each case and may increase or decrease the attorney's fee if in his judgment the circumstances of the particular case warrant such action:
(a) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly.
(b) The likelihood, if apparent to the claimant, that the acceptance of the particular employment will preclude employment of the lawyer by others or cause antagonisms with other clients.
(c) The fee customarily charged in the locality for similar legal services.
(d) The amount involved in the controversy and the benefits resulting to the claimant.
(e) The time limitation imposed by the claimant or the circumstances.
(f) The nature and length of the professional relationship with the claimant.
(g) The experience, reputation, and ability of the lawyer or lawyers performing services.
(h) The contingency or certainty of a fee. (emphasis supplied)

Prior to 1977, § 440.34(1), Fla. Stat., provided that in certain circumstances, if the claimant "shall have employed an attorney at law in the successful prosecution of the claim, there shall, in addition to the award for compensation, be awarded reasonable attorney's fee, to be approved by the judge of industrial claims ..." and paid by employer/carrier. The statute itself did not provide any standards to aid the judge in his determination of reasonableness. However, Lee Engineering & Construction v. Fellows, 209 So.2d 454 (Fla. 1968), enunciated certain criteria to be considered; the amount of the benefits obtained constituted the foundation of the fee, but the various other Lee Engineering criteria were also relevant considerations. Leaks v. National Pulpwood Corp., 9 FCR 189 (1975), cert. denied, 325 So.2d 6 (Fla. 1975). Compare Dept. of Commerce v. Fields, IRC Order 2-3140 (April 21, 1977), with Sherrill v. McKenzie Trust, IRC Order 2-3127 (March 22, 1977). And as to the benefits considered, the percentage fee was to be predicated only on those benefits obtained through the efforts of the claimant's attorney. C.E. Domes Construction Co. v. Hilaire, IRC Order 2-3096 (Jan. 27, 1977). In 1977 the legislature amended § 440.34(1) so as to codify the various Lee Engineering criteria, followed by amendment in 1978 to visit 25% of the fee upon claimant, and amendment in 1979 as above set forth.

The claimant and attorney are now clearly free to enter into a fee agreement at *339 any time; § 440.34(1), Fla. Stat. (1979), merely requires approval of the agreement upon payment. Unlike the prior statute, § 440.34(1), Fla. Stat. (1979) relates to "any attorney's fee approved" and omits the former restriction to fees awarded upon the "successful prosecution of the claim." Such a substantive omission is presumed intended to alter the statutory meaning. See Carlile v. Game & Fresh Water Fish Commission, 354 So.2d 362 (Fla. 1977). While § 440.34(2), Fla. Stat. (1979), provides for the assessment of costs "[i]f the claimant should prevail in any proceedings," this requirement is explicitly not applicable to attorney's fees. Since a rule that fees are payable under contract only if "the claimant should prevail" would be in derogation of the common law, we must conclude that the claimant need not "prevail," and approval of a fee payable by claimant is not dependent upon "the successful prosecution of the claim."

While the order on appeal recites consideration of subsection (1) above quoted, no evidence was presented on the pertinent factors and the order makes no findings on such factors.

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381 So. 2d 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/east-coast-tire-co-v-denmark-fladistctapp-1980.