Engel & Engel, P.A. v. Ingerman

724 A.2d 645, 353 Md. 43, 1999 Md. LEXIS 54
CourtCourt of Appeals of Maryland
DecidedFebruary 19, 1999
Docket59, Sept. Term, 1998
StatusPublished
Cited by12 cases

This text of 724 A.2d 645 (Engel & Engel, P.A. v. Ingerman) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engel & Engel, P.A. v. Ingerman, 724 A.2d 645, 353 Md. 43, 1999 Md. LEXIS 54 (Md. 1999).

Opinion

CHASANOW, Judge.

The primary issue in this appeal concerns the jurisdiction of the Workers’ Compensation Commission (Commission) over *46 a dispute between attorneys for legal fees related to a worker’s claim before the Commission. We conclude that the Commission’s jurisdiction over attorney’s fees under Maryland Code (1991 Repl.Vol.), Labor and Employment Article, § 9-731 is not exclusive where the Commission rendered a decision approving the appropriate fee for legal services and the dispute involves an alleged contract about how that fee subsequently should be divided among attorneys who claim a portion of the fee.

I.

The basic facts in this case are not contested. The dispute is between two law firms over the division of $12,500 in attorney’s fees approved by the Commission in 1995. The Commission’s approval related to the $200,000 settlement of a claim filed on behalf of Vonnie Colson, an employee of Owens-Corning Fiberglass, for work-related injuries to his back.

Both Appellant and Appellee represented Colson in pursuit of his claim for workers’ compensation benefits before the Commission during the years 1989 to 1995. Appellant Engel & Engel, P.A. (Engel) represented Colson from 1989 to 1992. In 1992, Colson discharged Engel and retained Ingerman & Horwitz (Ingerman), the Appellee in this case, as new counsel. The evidence of the alleged fee-sharing contract is based on a letter sent by Engel on December 3, 1992, to Ingerman. The letter mentions Engel’s transfer of Colson’s file to Ingerman and purports to confirm an agreement between the two law firms of a 50-50 division of attorney’s fees generated as a result of Colson’s claim. In relevant part, the letter stated:

“It is my understanding that due [to] the extensive work undertaken by our office in these matters, you have agreed to split any fees recovered in these matters on a 50-50 basis. You have also agreed to reimburse our office for the expenses incurred in the appeal that was tried before the Circuit Court for Baltimore City as it relates to [Colson’s] injury. Our expenses for same total $116.00.”

*47 On January 27,1993, in apparent response to Engel’s letter, Ingerman sent Engel a check for the $116.00 in expenses. A brief letter sent with the check did not dispute the terms of Engel’s December 3 letter. Ingerman then served as Colson’s counsel until the settlement was reached in 1995. While Ingerman was retained as Colson’s counsel, Philip Sturman was responsible for most of the work on the Colson case. Sturman’s work on the case initially took place as an employee of Ingerman but later, after he left the firm to begin a solo practice, as a subcontractor to Ingerman pursuant to a written agreement under the terms of which Sturman was paid an hourly rate. Sturman submitted to Ingerman monthly bills for his work, which Ingerman paid. Sturman was the individual ultimately responsible for negotiating the settlement with Owens-Corning.

After the settlement was reached, Ingerman submitted a petition, drafted by Sturman, to the Commission for attorney’s fees totaling $12,500, which were approved. Engel then sought 50 percent, or $6,250, of the fees pursuant to the agreement stated in his December 3,1992, letter. Engel filed suit in the District Court of Maryland sitting in Baltimore City after Ingerman refused Engel’s repeated demands for $6,250. The District Court denied Ingerman’s motion for summary judgment, which contended that the court had no jurisdiction to hear a case concerning attorney’s fees arising out of a workers’ compensation claim. Based on testimony from witnesses for both parties, the District Court judge, Alan M. Resnick, concluded that the correspondence indicated that a 50-50 fee-sharing agreement had been reached and entered a judgment on the merits for Engel for $6,250 plus costs.

On Ingerman’s appeal, the circuit court reversed the District Court’s decision without reaching the merits of Engel’s claim. The circuit court found that, although no cases addressed Ingerman’s jurisdictional defense, “the language ... in the various cases appears to suggest that the legislative policy [requiring Commission approval of attorney’s fees related to claims before the Commission] is an all encompassing preemption of the field of attorney’s fees.” That court there *48 fore concluded as a matter of law that the District Court had no jurisdiction to entertain Engel’s suit and that Engel should seek recovery at the Commission. The jurisdictional issue is now before us on certiorari review from the circuit court’s decision. 1 We will provide more facts as necessary in the analysis that follows.

II.

A.

The statute conferring jurisdiction on the Commission over attorney’s fees, Md.Code (1991 RepLVoL), Labor and Employment Art., § 9-731, 2 states as follows:

“(a) In general.—(1) Unless approved by the Commission, a person may not charge or collect a fee for:
(i) legal services in connection with a claim under this title;
(ii) medical services, supplies, or treatment provided under Subtitle 6, Part IX of this title; or
(in) funeral expenses under Subtitle 6, Part XIII of this title.
(2) When the Commission approves a fee, the fee is a lien on the compensation awarded.
(3) Notwithstanding paragraph (2) of this subsection, a fee shall be paid from an award of compensation only in the manner set by the Commission.
(e) Attorney’s fees—Administrative review.—On application of a party, the Commission may:
*49 (1) hear and decide any question concerning legal services performed in connection with a claim; and
(2) order a person who received a fee for legal services to refund to the payer any part of the fee that the Commission may find to be excessive.
(d) Same—Enforcement and appeal.—An order of the Commission regulating payment or refund of payment for legal services may be enforced or appealed in the same manner as a compensation award.”

The attorney’s fee provisions were originally enacted in 1957 as § 57 of Article 101 and their recodification as § 9-731 occurred in 1991 without any substantive changes relevant here. As a result, throughout this opinion our references to Maryland Code (1957, 1964 Repl.Vol., 1977 Cum.Supp.), Article 101, § 57 should be viewed as synonymous with § 9-731.

In the typical workers’ compensation case, the Commission will approve the legal fee for the attorney’s work upon approving an award to a worker-claimant. For guidance as to the appropriate fee, the Commission has promulgated a schedule of fees. Code of Maryland Regulations (COMAR) 14.09.01.25. The schedule establishes maximum amounts for attorney’s fees based on the extent of the disability and the amount of the award. Id.

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Bluebook (online)
724 A.2d 645, 353 Md. 43, 1999 Md. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/engel-engel-pa-v-ingerman-md-1999.