Mancilla v. Greg

963 P.2d 368, 131 Idaho 685, 1998 Ida. LEXIS 85
CourtIdaho Supreme Court
DecidedJune 30, 1998
Docket23651
StatusPublished
Cited by9 cases

This text of 963 P.2d 368 (Mancilla v. Greg) 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
Mancilla v. Greg, 963 P.2d 368, 131 Idaho 685, 1998 Ida. LEXIS 85 (Idaho 1998).

Opinion

SILAK, Justice.

This is an appeal by appellant David G. Pena (Pena), an attorney, from an order of the Industrial Commission (Commission) denying Pena’s motion to reconsider a previous order which partially denied attorney fees requested by Pena in a workers’ compensation case. We affirm.

I.

FACTS AND PROCEDURAL BACKGROUND

On October 12, 1993, Leovigildo Mancilla (Mancilla) suffered a work related accident while employed at Pahl Farms. Pahl Farms provided workers’ compensation insurance coverage through surety State Insurance Fund (SIF). Mancilla’s injury involved his right thumb being severed. At the University of Utah he underwent a successful reimplantation of the severed thumb, although Mancilla continued to experience certain physical limitations due to the injury.

In December 1993, Mancilla was released by his physician, Dr. Rockwell, to return to work at his pre-injury status. Although Mancilla was unable to perform the functions involved in his pre-injury job and was terminated by his employer, the SIF, based upon the release to return to work, terminated Maneilla’s temporary total disability (TTD) benefits. Without sufficient funds to continue with medical treatment, Mancilla decided to return to Mexico. At this point, a friend of Mancilla’s urged him to retain counsel.

On February 24, 1994, Pena and Mancilla entered into a contingency fee workers’ compensation claim agreement. Subsequently, Pena expressed his concern to Dr. Rockwell in Utah that Mancilla was not ready to return to work. Dr. Rockwell examined Mancilla again and reversed his previous decision to release Mancilla back to work. On April 5,1994, Dr. Rockwell found that Mancilla had sustained a 21% permanent partial impairment (PPI) rating of the hand as a result of the injury, 19% of the upper extremity, and 11% of the whole person. Following the impairment determination and payment of $11,632.00 for that impairment, Pena negotiated a lump sum settlement in the additional amount of $12,125.00. A review of the benefits received by Mancilla is as follows: he received $18,310.14 in medical and related benefits; TTD benefits in the amount of $5,448.95; PPI benefits in the amount of $11, 632.00; and an additional $12,125.00 as a lump sum settlement, for a total of $47,-516.09. Pena requested the Commission’s approval of $6,334.48 as attorney fees. He concedes that $21,289.44 of the total benefits were obtained prior to attorney involvement. Pena claims that the remaining $26,226.65 represents the benefits received after attorney involvement and obtained primarily and substantially as a result of Pena’s efforts. Twenty-five percent of that figure equals $6,556.66, but Pena requests $222.18 less than that. In addition to submitting the proposed Lump Sum Agreement to the Commission, Pena submitted an Addendum Reporting Attorney Involvement, which itemized his attorney fee request.

The Commission approved the Lump Sum Agreement except for the provisions contained in it relating to attorney fees. The Commission questioned whether Pena primarily or substantially assisted in the recovery of Mancilla’s PPI award. After a hearing on the issue of whether counsel’s efforts primarily or substantially operated to secure the PPI award in the amount of $11,652.00, the Commission issued an order denying *687 Pena a fee from Mancilla’s PPI award of $11,632.00. The Commission did approve attorney fees of 25% of $14,594.65, which was the sum of reinstated TTD benefits, future medical benefits, PPI/PPD benefits and consideration, for a fee of $3,648.66.

Pena then filed a motion for reconsideration which the Commission denied. Pena appeals, raising the issue whether the Commission erred in its order determining the amount of attorney fees to be paid to Pena in this matter.

II.

ANALYSIS

A. Standard Of Review.

It is well established that this Court’s review of Industrial Commission decisions is limited to a determination of whether the Commission’s findings of fact are supported by substantial and competent evidence. Reedy v. M.H. King Co., 128 Idaho 896, 899, 920 P.2d 915, 918 (1996); In re Wilson, 128 Idaho 161, 164, 911 P.2d 754, 757 (1996). Substantial and competent evidence is more than a scintilla of proof, but less than a preponderance. Wilson, 128 Idaho at 164, 911 P.2d at 757. It is relevant evidence which a reasonable mind might accept to support a conclusion. Id. Where conflicting evidence is presented that is supported by substantial and competent evidence, the findings of the Commission must be sustained on appeal regardless of whether this Court may have reached a different conclusion. Reedy, 128 Idaho at 899, 920 P.2d at 918. The Court exercises free review over the Commission’s conclusions of law. Smith v. J.B. Parson Co., 127 Idaho 937, 941, 908 P.2d 1244, 1248 (1996); Langley v. State, 126 Idaho 781, 784, 890 P.2d 732, 735 (1995).

B. Substantial And Competent Evidence Supports The Commission’s Decision That Pena’s Legal Services Did Not Operate Primarily Or Substantially To Secure Mancilla’s PPI Award.

Idaho Code section 72-803 empowers the Industrial Commission to approve all claims for attorney fees. Pursuant to its rulemaking authority under I.C. § 72-508, and this Court’s decision in Rhodes v. Indus. Comm., 125 Idaho 139, 868 P.2d 467 (1993), the Commission adopted a set of criteria for the approval of attorney fees in workers’ compensation cases. IDAPA 17.02.08.033. In Rhodes, the Court held that the Commission has the authority to administer I.C. § 72-803, and to issue regulations necessary to secure relief for injured workers and their families. 125 Idaho at 141, 868 P.2d at 469. In upholding the constitutionality of the regulation at issue in Rhodes, the Court concluded that “[t]he language of I.C. § 72-803 contemplates that the Commission will monitor the appropriateness of fees on behalf of claimants, and therefore the regulation provides a reasonable interpretation of the power vested by I.C. § 72-803.” Id.

Under the present rule governing attorney fees under the Administrative Procedures Act, “reasonable” attorney fees are defined as fees which are “consistent with the fee agreement and are to be satisfied from available funds, subject to the element of reasonableness contained in IRPC 1.5.” IDAPA 17.02.08.033.01.e. “Available funds” is defined as “a sum of money to which a charging lien may attach. It shall not include any compensation paid or not disputed to be owed prior to claimant’s agreement to retain the attorney.” IDAPA 17.02.08.033.01.a. Under section Ol.e, a “charging lien” may be asserted by an attorney who is able to demonstrate that:

i. There are compensation benefits available for distribution on equitable principles;
ii.

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Bluebook (online)
963 P.2d 368, 131 Idaho 685, 1998 Ida. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mancilla-v-greg-idaho-1998.