Fitch v. Sam Tanksley Trucking Co.

623 P.2d 991, 95 N.M. 477
CourtNew Mexico Court of Appeals
DecidedOctober 16, 1980
Docket4515
StatusPublished
Cited by13 cases

This text of 623 P.2d 991 (Fitch v. Sam Tanksley Trucking Co.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fitch v. Sam Tanksley Trucking Co., 623 P.2d 991, 95 N.M. 477 (N.M. Ct. App. 1980).

Opinions

OPINION

WALTERS, Judge.

Although defendant has not followed precisely the format of Rule 9(m)(2) R.Civ.App.P., N.M.S.A. 1978, the Brief-in-chief clearly defines the matters appealed. Therefore, we review on the merits the workman’s compensation award granting plaintiff escalated permanent partial disability benefits and $13,000 in attorney’s fees, and reverse.

Prior to the date scheduled for oral argument, both parties requested summary reversal on the issue of escalated compensation benefits awarded by the trial court. We grant that request, agreeing with the parties that the issue of escalating benefits was resolved adversely to the position taken by claimant at trial below, in Casis v. Zia Co., 94 N.M. 723, 616 P.2d 436 (Ct.App. 1980).

The remaining issue contested by defendant is the amount of the attorney’s fee. That question was most recently addressed in Johnson v. Fryar, (Ct.App.) No. 4477, decided October 2, 1980 (Fryar #2). All that was said in that ease applies equally here.

The parties submitted to us a Supplemental Transcript of Proceedings which shows that a separate hearing was held two months after trial when the judgment was presented for the court’s signature. At the hearing, reference was made to the Supreme Court decision in the first Fryar appeal (93 N.M. 485, 601 P.2d 718 (1979), Fryar #1), and plaintiff’s counsel noted for the record that there had been “a hearing on attorney’s fees at the end of the trial and I did reflect that in the findings of fact.” We interpret the comment to mean that counsel and the trial court recognized the Supreme Court’s insistence upon entry of findings and conclusions relevant to the factors which must be considered by the court in determining the amount of attorney’s fees in workman’s compensation cases. Fryar #1, supra, 93 N.M. at 488, 601 P.2d 718.

As in Fryar #2, supra, the trial court’s final findings and conclusions were virtually a verbatim adoption of plaintiff’s requested findings and conclusions. There is an indication, however, that some independent judgment was exercised, Mora v. Martinez, 80 N.M. 88, 451 P.2d 992 (1969), in that the trial court filed a document entitled “Amended Court’s Finding [sic] of Fact and Conclusions of Law” which deleted an alternate finding and alternate conclusion requested by plaintiff regarding the degree of disability. The alternatives had been included in the court’s first adoption of the plaintiff’s requests. Wholesale adoption of requested findings and conclusions is once again disapproved. Mora, supra.

Nevertheless, the only finding and conclusion relating to the issue of attorney’s fees are Finding No. 20 and Conclusion No. 7:

20. Counsel for Plaintiff has moved for attorneys fees in this case, and the Court has heard said motion and considered the arguments of both counsel, and has determined that fees in the amount of 15% of the present value of the award made to Plaintiff are reasonable, and notes that this case involved the depositions of three witnesses taken in Oklahoma City, Oklahoma.
7. Compensation to which Plaintiff is entitled has been refused and these court proceedings having resulted in the collection of compensation having a present value of approximately $89,313.26, the attorney for Plaintiff is entitled to fees in the amount of 15% for the above award or $13,396.99.

Unfortunately, neither the Transcript of Proceedings nor the Supplemental Transcript contain any record of the motion, the evidence produced, or the arguments made concerning the propriety of the fees awarded. Instead, the finding and conclusion which we have quoted above indicate that the amount of the attorney’s fees was reached solely by applying the same percentage figure to the total anticipated benefits as was found improper in Fryar #2, supra, and the additional observation that three depositions were taken out of state.

Plaintiff was obliged to request a record of the hearing on attorneys’ fees, Fryar #1, if the award is to be sustained. The finding plaintiff relies on is insufficient, by itself, to satisfy Fryar #l’s, admonition that there is “need for evidentiary support for fees awarded by a trial court,” (93 N.M. at 488, 601 P.2d 718), and Fryar #2’s, explicit directions regarding the factors to be considered and the type of evidence to be produced to prove adequate consideration of all of those factors. Both Fryar decisions clearly establish that it is an abuse of discretion to award attorneys’ fees if the record lacks an evidentiary basis to sustain the award. We are bound by the most recent Supreme Court decision on that question. See Fryar #1. “Evidentiary support of the fee is essential.” Clymo v. United Nuclear Corp., 94 N.M. 214, 608 P.2d 526 (Ct.App.1980).

Correlating the factors with the evidence, as was done in Fryar #2, supra, the instant record discloses the following:

1. Offers of settlement: The record does not show that any offer was made, and the trial court made no finding on that matter.

2. Present value of the award: The court’s conclusion of present value appears to be based on the total escalated and anticipated benefits for the entire period of plaintiff’s statutory entitlement, without regard of the possibility of diminution or termination provided by § 52-1-56 A, N.M. S.A. 1978. The impropriety of escalated benefits had been discussed; we also believe it improper in considering that factor as it bears on the amount of fees, to establish the present value of the workman’s award as including amounts over a figure due or to become due within six months beyond the date the award is granted, in the absence of evidence directed to the benefits continuing beyond the six-month period.

3. The chilling effect of miserly fees upon a workman’s ability to obtain representation: As Fryar #2 noted, this is a policy matter rather than an evidentiary issue. We do not read Fryar #1 to indicate that in the case it cited, Herndon v. Albuquerque Pub. Schools, 92 N.M. 287, 587 P.2d 434 (1978), $3,800 awarded as attorney’s fees for recovery in the trial court of a compensation award increased from $37,-500 to $54,000 on appeal, was miserly; rather, it held that an additional $2,500 should have been granted for the work of claimant’s attorney on the successful appeal. We infer from Herndon and Fryar #1 that an attorney’s fee of $3,800 for successful prosecution of a workman’s compensation case is not “miserly.”

4. Time and effort expended by the attorney. The only evidence of the attorney’s effort appearing in the record is a IV2 page complaint, a request for hearing, notice to take two depositions, seven pages of requested findings and conclusions, and the transcript of a trial commencing at 10:00 a. m. in which one witness was called and two medical depositions (taken by associate Oklahoma counsel and totalling 31 pages of the transcript) were read. There is nothing in the record supporting the finding that three witnesses were deposed. There is little in Finding No.

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Fitch v. Sam Tanksley Trucking Co.
623 P.2d 991 (New Mexico Court of Appeals, 1980)

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623 P.2d 991, 95 N.M. 477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fitch-v-sam-tanksley-trucking-co-nmctapp-1980.