May v. Charles Hoertz & Son

170 N.W. 305, 204 Mich. 432, 1919 Mich. LEXIS 718
CourtMichigan Supreme Court
DecidedJanuary 15, 1919
DocketDocket No. 86
StatusPublished
Cited by10 cases

This text of 170 N.W. 305 (May v. Charles Hoertz & Son) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
May v. Charles Hoertz & Son, 170 N.W. 305, 204 Mich. 432, 1919 Mich. LEXIS 718 (Mich. 1919).

Opinion

Stone, J.

This is a controversy between the claimant and her attorneys, Thompson & Temple, relating to the amount of attorney fees due to the latter for their services and expenses in the litigation of claimant’s claim for compensation in Opitz v. Hoertz, 194 Mich. 626. In that case this court held that the owner of the premises, Brown & Sehler Co., was liable under the workmen’s compensation law. After that case was remanded to the industrial accident board for further proceedings, such further proceedings were had which resulted in the allowance to claimant, as the dependent of her deceased husband, Fred May, of the sum of $5.54 per week for 300 weeks to be paid by Brown & Sehler Co.

The industrial accident board found that on April 25, 1917, there was due to , claimant $642.64 accrued compensation, and on April 30, 1917, Brown & Sehler Co. paid said $642.64 to claimant and she signed a [434]*434receipt for that sum. The compensation due and to become due for the entire period of 300 weeks aggregates $1,662. Thompson & Temple, claiming that they had a contract with claimant in and by the terms of which they were to receive from her 25 per cent, of the amount recovered or awarded, for their services and expenses and having said check indorsed by claimant in their possession, caused the same to be cashed, and deducted and kept from the amount 25 per. cent, of the entire compensation awarded, or $415.50, as their attorney fees.

Claimant denied that there was any such agreement, or any agreement as to the amount of compensation; and presented to the industrial accident board her petition wherein she prayed, among other things, that said board should hear the petition and consider all the facts and testimony that might be produced, and fix the compensation that Thompson & Temple ought to have for their work and expenses, and that an order might be made specifying how much of said $415.50 said attorneys had the right to retain, and how much of it they should pay back to petitioner.

Thompson & Temple answered the petition setting forth their claim as above stated, alleging that the amount of their fees as agreed upon had been settled according to the terms of the agreement, and paid, and that the transaction was closed. Testimony was taken and the matter was submitted to the board. The record shows that by stipulation of counsel for the respective parties, “it was agreed that any of the records and files in the case, including the printed record, could be used by either party on the argument in this case or in their briefs.”

The industrial accident board in a written finding reviewed the facts in the case, and said in part:

“It seems to us that the only question in this case is, What was the value of "the services performed for [435]*435Mrs. Frances May by Thompson & Temple as her attorneys? Section 10 of part 3 of the workmen’s compensation law provides in part as follows:
“ ‘The fees and the payment thereof, of all attorneys * * * for services under this act shall he subject to the approval of the industrial accident board.’ [2 Comp. Laws 1915, § 5463.]
“The board understands this provision to mean that the board has jurisdiction to fix the fees of attorneys as between themselves and the injured employees, or the dependents of injured employees under the-workmen’s compensation law. The attorneys, Thompson & Temple, deny this power of the board and claim in their brief that they had a right to make a 25 per cent, contract with Mrs. Frances May, and that the parties had a right to settle on that basis, and that they did so, and that there is nothing more to the matter.
“If this were an ordinary contract in an ordinary business transaction between the parties, that view might be correct, but it seems to us that it was the clear intent of the workmen’s compensation law to provide that the amount of-attorney fees for injured employees, and their dependents, should be subject to the control of the industrial accident board.”

After reviewing the evidence and the files and records before it, the board concluded as follows:

“From all the files, records, proceedings and testimony in this case, the board finds:
“ (a) That a reasonable allowance to Thompson & Temple, attorneys for Frances May in this case, to cover and pay for all their services, and to pay back any expenses they may have paid out, is the sum of $125.
“(b) That on or about April 30, 1917, said Thompson & Temple retained $415.50 of the money paid to Mrs. Frances May when they should have retained only $125, so that they have retained $290.50 more than they should have retained.
“(c) That said Thompson & Temple, a copartnership composed of George W. Thompson and Fred C. [436]*436Temple, should forthwith pay to Frances May the said sum of $290.50.
“(d) That it is the duty of .the industrial accident board to pass upon the question of attorneys’ fees in this case.
“An order will be entered in conformity with the terms of these findings.”

A formal order was subsequently entered, and Thompson & Temple have brought the matter here for review, by certiorari.

There are many assignments of error; but in their brief, and upon the hearing before us, appellants relied upon the points that there was a contract between the parties, and a settlement, and for that reason the industrial accident board has no jurisdiction in the matter. And it was further contended that, if such power is given to the board by the statute above referred to, the same is unconstitutional and void.

1. An examination of the record satisfies us that there was evidence to sustain the findings of fact by the board, above referred to. The industrial accident board did not distinctly find whether or not the contract as claimed by Thompson & Temple with the claimant had been made. Conceding, but not deciding, that said contract was made as claimed by Thompson & Temple, it is not claimed that it was ever approved by the industrial accident board, as is required by section 10 of part 3 of the act. The provision of the statute above referred to is plain and unequivocal, and provides in terms that the fees and the payment thereof of all attorneys for services under the act shall be subject to the approval of the industrial accident board. We agree with the conclusion reached by the board, that under this provision it has jurisdiction to fix the fees of attorneys as between themselves and injured employees, or, the dependents of injured employees,. under the workmen’s compensation law. This view is not an anomaly; it is in accord with other [437]*437provisions of the same statute. Section 5 of part 3 of the act (2 Comp. Laws 1915, § 5458) is as follows:

“If the employer, or the insurance company carrying such risk, or commissioner of insurance, as the case may be, and the injured employee reach an agreement in regard to compensation under this act, a memorandum of such agreement shall be filed with the industrial accident board, and, if approved by it, shall be deemed final and binding upon the parties thereto.

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Cite This Page — Counsel Stack

Bluebook (online)
170 N.W. 305, 204 Mich. 432, 1919 Mich. LEXIS 718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/may-v-charles-hoertz-son-mich-1919.