Helmerich & Payne, Inc. v. State Industrial Commission

1940 OK 198, 102 P.2d 586, 187 Okla. 335, 1940 Okla. LEXIS 236
CourtSupreme Court of Oklahoma
DecidedApril 16, 1940
DocketNo. 29161.
StatusPublished
Cited by7 cases

This text of 1940 OK 198 (Helmerich & Payne, Inc. v. State Industrial Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Helmerich & Payne, Inc. v. State Industrial Commission, 1940 OK 198, 102 P.2d 586, 187 Okla. 335, 1940 Okla. LEXIS 236 (Okla. 1940).

Opinion

HURST, J.

This is an original proceeding to review an order of the State Industrial Commission fixing an attorney’s fee under the provisions of section 13364, O. S. 1931. The facts out of which the present controversy arose are set out at length in Conrad v. State Industrial Commission, 181 Okla. 324, 73 P. 2d 858, and need not be restated herein. After the decision in that case the commission, *336 upon evidence taken at a hearing after due notice, fixed and approved an attorney’s fee of $450 to Conrad, making it a lien upon the award, and this proceeding is brought by the employer to review the award. Petitioner makes six contentions, which may be disposed of under three heads.

1. The first contention is that the order allowing the attorney fee was not made in accordance with section 2, art. 2, ch. 7,2, S. L. 1939, in that it was not made by the commissioner who heard the evidence. No authority is cited supporting this contention, but the construction of this act contended for by petitioner, if correct, would in effect preclude the commission from acting in any matter before it until it had adopted the rules of procedure prescribed in the act. Examination of the act in question discloses no such intent on the part of the Legislature. The order appealed from was made one day after the effective date of the act. Evidence had previously been taken, and while the order was not made by the commissioner who conducted the hearing, the order recites that all the evidence taken was considered by the commission before making it. We do not think that by said act the commission was required to refrain from acting in such case until rules of procedure could be formulated, and new hearings held in conformity thereto, but it was at liberty to proceed in accordance with the rules of practice under which the hearing had been held until the new rules were promulgated. This is indicated by the language of section 4 of the act, which provides that the then members of the commission, “in addition to the powers and duties conferred upon said State Industrial Commission under the laws of this state at the time of the effective date of this act, shall exercise and perform all the powers and duties herein conferred upon the State Industrial Commission during such period as they shall serve as members of the State Industrial Commission.” We therefore conclude that the making of the order by the full commission was not a violation of the above act.

2. It is next contended that the order is contrary to our decision in Conrad v. State Industrial Commission, supra, and that in making the order the commission acted arbitrarily, contrary to the law and the evidence, in direct violation of the mandate of this court, and beyond and in excess of the jurisdiction of the commission. The argument seems predicated upon the theory that in the former decision this court held that under section 13364, O. S. 1931, the claim of Conrad was not a lien until it had been approved by the commission, and that it therefore attached only to the compensation remaining unpaid on the date of such approval. Carr v. State Industrial Commission, 157 Okla. 140, 11 P. 2d 134, is also cited in support of the assertion that no lien attached. But we think that the statements in those cases do not render the order of the commission attacked in this proceeding contrary to law. In the Carr Case the attorney made no claim to the commission for a fee. The award was paid to him, and he withheld payment thereof to his client in an effort to force payment of the fee he demanded. The court held that the State Industrial Commission in such case obtained jurisdiction to fix the attorney’s fee, where it was to be paid from the proceeds of the award, upon the request of claimant, and that prior to the fixing of the fee the attorney had no lien upon the award. The facts in that case are so unlike the facts in the present case as to render it of little value in solving the problem presented here. In the present case the employer, with notice of the claim of Conrad that he was to be paid a reasonable fee out of the proceeds of the award, settled with the claimant without notice to Conrad, and prevailed upon the commission to fix Conrad’s fee without giving him notice or an opportunity to be heard. It then paid the claimant the remainder of the award. Under the law an award does not become final until 30 days after the transmission of copies thereof to the parties affected thereby. When petitioner paid the claimant prior to the expiration of that period, with knowledge of the claim asserted by Conrad, and before a fair determination of that claim, it did *337 so at its peril. As to Conrad, the award was voidable, and he sought to and did vacate it. Petitioner, as to Conrad, may not take refuge in its own disregard of Conrad’s rights. As to Conrad, it will be conclusively presumed that petitioner retained such part of the award as was necessary to pay his fee. Sargent v. McLeod, 209 N. Y. 360, 103 N. E. 164, 52 L. R. A. (N. S.) 380. In such situation, while the claim of Conrad did not ripen into a lien under the statute until the amount thereof had been fixed and approved by the commission, still it was an asserted claim against the fund out of which Conrad was entitled to be paid. It was an inchoate lien, a charge in an amount not fixed, against the particular fund, recognized as such by petitioner when it requested the commission to fix and allow the fee at the time it presented to the commission the settlement agreement, and when it withheld the amount so fixed from the sum paid to the claimant under the settlement agreement. 6 C. J. 790, note 55; 7 C. J. S. 1184, note 98.

Under the attorney’s lien law, the lien is not effective, as against a party settling with the attorney’s client, unless and until such party has notice, actual or constructive, of the lien claimed. Smith v. Westgate Oil Co., 175 Okla. 573, 53 P. 2d 1090. But if notice is given, the party so settling with notice is not by such settlement absolved from liability for the attorney’s fee. Boulding v. Slick, 161 Okla. 189, 17 P. 2d 391. The situation of the petitioner in the present case, while not identical with that of a party settling an ordinary action with notice that lien on his adversary’s cause of action and recovery was claimed by the attorney, is in some respects analogous. Petitioner knew that Conrad claimed a fee from the compensation of his client, which would ripen into a statutory lien when fixed by the commission. It was thereby charged with knowledge of this claim against this particular fund, and where with such knowledge it paid the award, it did so at its own risk.

In Clark v. Armstrong & Murphy, 180 Okla. 514, 72 P. 2d 362, this court held that an agreement to pay an attorney’s fee' out-of-a particular fund, as against one who took the fund with notice of the agreement, created an equitable lien on the fund. While the present case is not of equitable cognizance, yet this court has held that the Workmen’s Compensation Act is to be construed liberally in favor of those entitled to its benefits, in order to effectuate the purposes for which it was enacted. Thompson v. State Industrial Commission, 138 Okla. 166, 280 P. 597; Stasmas v. State Industrial Commission, 80 Okla. 221, 195 P. 762.

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Bluebook (online)
1940 OK 198, 102 P.2d 586, 187 Okla. 335, 1940 Okla. LEXIS 236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/helmerich-payne-inc-v-state-industrial-commission-okla-1940.