Hogaboom v. Economy Mattress

684 P.2d 990, 107 Idaho 13, 1984 Ida. LEXIS 516
CourtIdaho Supreme Court
DecidedJuly 16, 1984
Docket14963
StatusPublished
Cited by11 cases

This text of 684 P.2d 990 (Hogaboom v. Economy Mattress) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hogaboom v. Economy Mattress, 684 P.2d 990, 107 Idaho 13, 1984 Ida. LEXIS 516 (Idaho 1984).

Opinions

BISTLINE, Justice.

The facts of this case are not in dispute. Claimant, Betty Hogaboom, was employed as a seamstress by defendant, Economy Mattress. On June 11,1981, while at work, Claimant took a break to go to the restroom. Her access to the restroom was blocked by a pile of foam. Claimant got up on a chair and attempted to jump over the foam. In the process, Claimant injured her back. As a result of the injury, Claimant lost four weeks and two days from work, and incurred approximately $950 in medical bills. The employer’s surety, Maryland Casualty Company, denied that the injury was compensable under worker’s compensation and refused to pay any benefits.

A hearing on the matter was held before the Industrial Commission on July 2, 1982. In an order dated September 16, 1982, the Commission concluded that the injury was compensable and that defendant surety unreasonably denied the claim. The Commission found that “[t]he Claimant has not received any compensation benefits from the Employer and would not receive any benefits but for having engaged counsel.” R., pp. 8-9. The order further provided "... that the Defendants are liable for Claimant’s reasonable attorney fees in this matter. Claimant’s counsel is ordered to submit an affidavit of services rendered so the Commission can set the appropriate amount of attorney fees.” R., p. 9 (emphasis added). Neither party has appealed that ruling.

Subsequently, Claimant’s attorney submitted an affidavit itemizing 46.75 hours of work on the case which, when billed at the reasonable rate of $70 per hour, totaled the sum of $3,272.50. R., pp. 11-15. An affidavit and brief in response were filed by defendants and Claimant filed a reply. The Commission then requested further information regarding the attorney/client fee agreement. Claimant filed an affidavit and copy of the fee agreement with the relevant portion of the agreement PROVIDING as follows:

“If a law suit is instituted, %Zlh% of any amount recovered through his efforts or attorney fees awarded by the Court, whichever is greater.” (Emphasis added.)

Thereafter, on February 2, 1983, the Commission entered its order awarding Claimant attorney’s fees in the amount of 33x/3% of the benefits due the Claimant. Those benefits totaled $540 for temporary total disability benefits and approximately $950 for medical benefits. The Commission indicated that the contingency fee agreement between Claimant and her attorney, Clark v. Sage, 102 Idaho 261, 629 P.2d 657 (1981), placed the Commission under the duty of determining a reasonable fee solely on a contingency basis. It is from the Commission’s order of February 2, 1983, regarding the proper award of attorney’s fees to claimant, that the present appeal has been brought.

[15]*15Respondents argue, and the Commission apparently decided, that the present case is controlled by this Court’s opinion in Clark, supra. Clark involved a contingent fee agreement in effect between the claimant and his attorney. After the Industrial Commission found that the employer contested the employee’s claim without reasonable grounds, the issue on appeal narrowed solely to whether attorney’s fees should be awarded on the basis of the contingency fee agreement itself or, as the Industrial Commission had decided, on customary considerations of the time and effort involved.

The Clark Court reversed the award of the Industrial Commission “in order to effectuate the intent of the claimant and his attorney concerning the question of compensation.” Id. at 265, 629 P.2d 657. After noting that such awards of attorney’s fees are “said to be compensatory,” id. at 263, 629 P.2d 657, and that “a contingent fee is like any other fee and is subject to the same standards of reasonableness as any other fee,” id., at 265, 629 P.2d 657, the Court stated the following:

“In determining a reasonable attorney fee on a contingency basis, the Industrial Commission must therefore engage in a balancing process. By no means exhaustive, the following factors have been held to be relevant for consideration by the courts and/or administrative agencies in determining a reasonable fee on a contingency basis: (1) the anticipated time and labor required to perform the legal services properly; (2) the novelty and difficulty of the legal issues involved in the matter; (3) the fees customarily charged for similar legal services; (4) the possible total recovery if successful; (5) the time limitations imposed by the client or circumstances of the case; (6) the nature and length of the attorney-client relationship; (7) the experience, skill and reputation of the attorney; (8) the ability of the client to pay for the legal services to be rendered; and (9) the risk of no recovery. [Citations omitted.] Obviously, there is no precise way to quantify many of these factors, particularly since the Industrial Commission will be examining the matter at the conclusion of the claimant s prosecution of his claim and assessing the award of attorney fees from the vantage point of when the parties agreed to compensation on a contingency basis. And although the background and experience of the Commission in awarding attorney fees under I.C. § 72-804 should not be disregarded, the Commission should have the benefit of appropriate evidence where the amount to be awarded, as in this case, is in dispute.”
Id. at 265-66, 629 P.2d 657.

Respondent now argues that because the Industrial Commission considered the contract and expressly found that “the 33V3 percent contingent fee agreement entered into by the parties was a reasonable fee,” R., p. 37, appellant is limited thereto under Clark, and may not legitimately seek an award of attorney’s fees exceeding that amount.

It is the view of this Court, however, that a careful reading of our opinion in Clark clearly reveals that the Court’s reasoning was inextricably linked to the fact that claimant and his attorney had agreed to payment solely on a contingency basis:

“Given that the claimant and his former attorney entered into a contingent fee agreement, the Commission is under a duty to determine what would be a reasonable attorney fee on a contingency basis. This obligation necessarily arises from the fact that the intent of the claimant and his former attorney was for the attorney to be paid on a contingent fee basis.”
Clark, supra, at 264, 629 P.2d 657 (emphasis added).

In the present case, however, it is apparent that the parties contemplated a different type of fee agreement than that utilized in Clark, supra. The agreement in effect between the claimant and his attorney expressly provided that the contingency fee agreement would govern only if the Industrial Commission were not itself to award an attorney’s fee greater than one-third of the award made to the claimant. In Clark, [16]

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Hogaboom v. Economy Mattress
684 P.2d 990 (Idaho Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
684 P.2d 990, 107 Idaho 13, 1984 Ida. LEXIS 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogaboom-v-economy-mattress-idaho-1984.