Hinerman v. Daily Gazette Co., Inc.

423 S.E.2d 560, 188 W. Va. 157, 20 Media L. Rep. (BNA) 2169, 1992 W. Va. LEXIS 144
CourtWest Virginia Supreme Court
DecidedJuly 15, 1992
Docket20489
StatusPublished
Cited by33 cases

This text of 423 S.E.2d 560 (Hinerman v. Daily Gazette Co., Inc.) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hinerman v. Daily Gazette Co., Inc., 423 S.E.2d 560, 188 W. Va. 157, 20 Media L. Rep. (BNA) 2169, 1992 W. Va. LEXIS 144 (W. Va. 1992).

Opinions

NEELY, Justice:

This is a libel case against The Charleston Gazette in which the plaintiff, Raymond Hinerman, recovered $75,000 in actual damages and $300,000 in punitive damages. We affirm.

BACKGROUND

Sam Levin is a Russian immigrant who came to the United States in 1975 and moved to Wheeling in 1977. Mr. Levin was trained as a mining engineer in Russia and he found work in West Virginia as a miner. While working, Mr. Levin suffered a heart attack. Mr. Levin filed a Workers’ Compensation claim and was represented by legal counsel for District 6 of The United Mine Workers (UMW) free of charge. At that time, the UMW’s lawyer was Raymond Hinerman, the appellee in the case before us.

Mr. Levin’s Workers’ Compensation claim was contested on several grounds. There was some question concerning whether: (1) Mr. Levin had a preexisting heart condition; (2) the heart condition arose from and in the course of Mr. Levin’s employment; and (3) the condition produced permanent total disability. The initial determination was that a 20 percent award would fully compensate Mr. Levin for his work-related injury.

Mr. Levin protested the initial 20 percent award, and while his appeal was being processed, District 6 of the UMW replaced Raymond Hinerman with Craig Broadwa-ter as their lawyer. Mr. Broadwater suggested to Mr. Levin that he retain Mr.

Hinerman privately because of Mr. Hiner-man’s experience with complex Workers’ Compensation cases.

Mr. Broadwater made clear to Mr. Levin that private representation by Mr. Hiner-man would not be free, and in fact, Mr. Broadwater showed Mr. Levin a copy of the West Virginia statute on lawyers’ fees in Workers’ Compensation cases. Mr. Lev-in then requested the services of Mr. Hiner-man as his private lawyer. There followed conversations and a signed, written contract setting forth the terms under which Mr. Hinerman agreed to act as Mr. Levin’s lawyer. The contract into which the two parties entered was a standard contingent fee contract that called for Mr. Hinerman to receive 20 percent of all compensation awarded Mr. Levin for a period of 208 weeks. This was the maximum fee allowed by statute.

While the appeal of Mr. Levin’s case to the Workers’ Compensation Appeal Board was being prepared, Mr. Levin moved to Florida. Mr. Levin remained in constant communication with Mr. Hinerman through collect telephone calls to him. After Mr. Hinerman had presented his oral argument before the Workers’ Compensation Appeal Board, the appeal board increased Mr. Lev-in’s award to total permanent disability. Mr. Levin’s employer did not appeal. On 8 June 1982, the commissioner directed payment to Mr. Levin of $19,782.38 in back benefits and a monthly stipend of $1,162.38.

Without informing Mr. Hinerman, Mr. Levin telephoned and sent a telegram to the Workers’ Compensation commissioner revoking the commissioner’s authority to honor Mr. Hinerman’s demand for attorneys’ fees. When Mr. Hinerman learned of this, he sent a letter demanding 20 percent of the award to date. After six weeks of repeated demands for payment pursuant to his contract, Mr. Hinerman sued Mr. Levin.

When Mr. Levin failed to answer, Mr. Hinerman moved for a default judgment, with notice to Mr. Levin that a hearing would be held on that motion on 14 October 1982. On 8 October 1982, the circuit court [163]*163received a letter from David Gold, Esq., requesting a continuance and stating that he had just been contacted by Mr. Levin but had not yet agreed to act as counsel. At the 14 October 1982 hearing, Mr. Hiner-man’s motion was granted, but Mr. Levin was given an additional ten days to assert bona fide defenses. When Mr. Levin did not avail himself of that opportunity, a default judgment as to liability was entered on 27 October 1982. On 29 October 1982, Mr. Gold, who agreed finally to represent Mr. Levin, sent a letter to the Circuit Court of Hancock County seeking another continuance while he conferred with Mr. Levin’s Florida counsel.' Meanwhile, Mr. Hinerman gave notice to all the parties of a hearing set for 16 November 1982 for an attachment. On 4 November 1982, the clerk of the circuit court received a letter of general denial from Mr. Levin but neither the circuit judge nor Mr. Hinerman saw a copy of that letter. On 8 November 1982, Mr. Lev-in’s counsel, Mr. Gold, advised the court by letter that he had not yet concluded arrangements with Mr. Levin concerning his employment. At the 16 November 1982 hearing, Mr. Levin’s written motion to set aside the default judgment was delivered by another lawyer, Arch Riley, Jr., Esq., and the motion was denied by the circuit court. Finally, on 3 December 1982, Mr. Gold filed another motion to vacate the default judgment giving notice of a hearing to be held on 16 December 1982. On that date, the trial court conducted a full hearing and issued findings of fact and conclusions of law in a memorandum of opinion, and entered an order denying the motion.

Mr. Levin, through his lawyer Mr. Gold, then filed a petition in this Court appealing the 17 May 1983 circuit court order. The libelous editorial in The Charleston Gazette that is the subject of this appeal arose from the allegations in the petition filed by Mr. Gold. We granted Mr. Levin’s appeal, and on 13 December 1983 entered an order affirming the circuit court in all matters except that we allowed Mr. Levin a $600 credit against his fee with Mr. Hinerman, based upon monies paid to Mr. Hinerman while Mr. Hinerman was employed by District 6 of the United Mine Workers. See, Hinerman v. Levin, 172 W.Va. 777, 310 S.E.2d 843 (1983).

On 20 May 1983, The Charleston Gazette published the following editorial:

LAWYER ETHICS
The State Bar ethics committee which guards against lawyer misconduct — and also the Judicial Inquiry Commission which watches over judges — should keep an eye on a current state Supreme Court case.
It involves a sick immigrant miner who won disability payments, but his lawyer took every penny, getting $12,000 for one day’s work. (The lawyer said the old man was lucky because $1,000 of the miner’s legal expense was billed to a different client). A judge allowed it to happen because a letter from the immigrant didn’t meet proper legal form.
Allegations before the high court:
Sam Levin, a Russia native, moved to Wheeling and worked for Consolidation Coal Co. until he suffered a heart attack. UMW attorney Ray Hinerman, paid by the union, represented Levin free before the Workers’ Compensation Fund. The miner was granted 20 percent disability.
Hinerman quit the UMW and represented Levin privately in an appeal. After a one-day hearing, Levin was granted 100 percent disability. Hinerman sent the ex-miner a bill for $4,202. Levin didn’t pay. The lawyer sued in Hancock County Circuit Court, demanding $12,-088.
Levin wrote a letter to Judge Callie Tsapis saying he couldn’t afford to hire another lawyer to answer the suit, but felt he owed Hinerman nothing. “I am convinced that Mr. Hinerman used my ignorance and lack of skill in language and law to his advantage.” Ms. Tsapis ruled that the letter didn’t constitute a legal reply. She gave Hinerman a default judgment and allowed him to seize 100 percent of Levin’s Workers’ Compensation benefits.
A different lawyer came to Levin’s aid and appealed to the Supreme Court. The

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Bluebook (online)
423 S.E.2d 560, 188 W. Va. 157, 20 Media L. Rep. (BNA) 2169, 1992 W. Va. LEXIS 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hinerman-v-daily-gazette-co-inc-wva-1992.