Metropolitan Transit Authority v. Plessner

682 S.W.2d 650, 1984 Tex. App. LEXIS 6724
CourtCourt of Appeals of Texas
DecidedNovember 21, 1984
Docket01-84-0415-CV
StatusPublished
Cited by24 cases

This text of 682 S.W.2d 650 (Metropolitan Transit Authority v. Plessner) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan Transit Authority v. Plessner, 682 S.W.2d 650, 1984 Tex. App. LEXIS 6724 (Tex. Ct. App. 1984).

Opinion

OPINION

BULLOCK, Justice.

This is an appeal from the granting of the appellees’ motions for summary judgment.

Metropolitan Transit Authority, “MTA,” filed a declaratory judgment action against Richard Plessner, Thomas B. Schlotzhauer, Samuel J. Miller, and William L. Lane. MTA sought a determination of its right to the entire subrogation interest in settlement proceeds from third-party claims made by its employees after the employees had recovered workers’ compensation claims from MTA.

The facts are undisputed. MTA, a political subdivision of the State of Texas, is self-insured and provides workers’ compensation benefits to its employees pursuant to Tex.Rev.Civ.Stat.Ann. art. 8306 (Vernon Supp.1984). Therefore, it is an “insurance association” as that term is used in article 8307.

MTA paid workers’ compensation claims to employees Sylvester Johnson, David Gray, Limuel Sharp, and Thelma Hodge. Therefore, it was entitled to any subrogation interest in settlement proceeds from third-party claims that those employees may have received. Each employee hired an attorney through which each settled a third-party claim. Johnson was represented by Plessner, Gray by Miller, Sharp by Schlotzhauer, and Hodge by Lane. Each attorney withheld attorney’s fees from MTA’s subrogation interest, claiming that he was entitled to reasonable fees from MTA’s subrogated interests. MTA never hired any attorneys to represent it or protect its subrogation interest in the third-party claims.

MTA filed suit pursuant to the Uniform Declaratory Judgment Act, Tex.Rev.Civ. Stat.Ann. art. 2524-1 (Vernon 1965) for construction of Tex.Rev.Civ.Stat.Ann. art. 8307, sec. 6a (Vernon Supp.1984) and a declaration that the appellees were not entitled to attorneys’ fees under article 8307, section 6a.

Each appellee filed a general denial. In addition, Schlozhauer and Plessner filed cross-actions under the Uniform Declaratory Judgments Act for construction of article 8307, sec. 6a and a declaration that they were entitled to attorneys’ fees.

MTA filed a motion for summary judgment alleging that there was no question of fact involved and that it was entitled to judgment as a matter of law. Thereafter, Miller, Plessner, and Schlotzhauer filed motions for summary judgment asserting that there was no genuine issue of material fact necessary to recover attorneys’ fees under article 8307, section 6a; therefore, they should be granted a judgment for attorneys’ fees.

On May 8, 1984, the trial court ordered that the cause of action between MTA and Lane be severed from the original suit.

On May 11, the court denied MTA’s motion for summary judgment and granted appellees’ motions for summary judgment.

MTA appeals on two points of error. In its first point, MTA asserts that the trial court erred in granting appellees’ motions for summary judgment because appellees are not, as a matter of law, entitled to any portion of the subrogation interest. In point of error two, MTA alleges that the trial court erred in denying its motion for summary judgment, since the summary *652 judgment evidence demonstrated as a matter of law that the appellees are not entitled to any portion of the subrogation interest. Both points will be discussed together.

Article 8307, sec. 6a provides that an injured employee may proceed against a third person to recover damages when the injury was caused under circumstances creating liability in some person other than the subscriber. It further provides:

However, when the claimant is represented by an attorney, and the association’s interest is not actively represented by an attorney, the association shall pay such fee to the claimant’s attorney not to exceed one-third (⅛) of said subrogation recovery or as may have been agreed upon between the claimant’s attorney and the association or in the absence of such agreement, the court shall allow a reasonable attorney’s fee to the claimant’s attorney for recovery of the association’s interest which in no case shall exceed thirty-three and one-third percent (33V3) payable out of the association’s part of the recovery.

The appellant argues that the statute describes only three situations in which a claimant’s attorney is entitled to fees from the insurance carrier: (1) when there is an agreement between the parties; (2) when the claimant has agreed in writing to allow his attorney to represent the carrier; (3) when a lawsuit has been filed and the association is not actively represented by an attorney. Although the appellant admits that this issue has never been directly addressed by the courts, it relies on the following cases to support its assumption that these three examples are the only situations in which a fee may be recovered and that sec. 6a is incapable of operating in the absence of a lawsuit: Hartford Insurance Co. v. Branton & Mendelsohn, Inc., 670 S.W.2d 699 (Tex.App.-San Antonio 1984, no writ); Union Carbide Corp. v. Burton, 618 S.W.2d 410 (Tex.App.-Houston [14th Dist.] 1981, writ ref’d n.r.e.); International Insurance Co. v. Burnett & Ahders, Associated, 601 S.W.2d 199 (Tex.Civ.App.— El Paso 1980, writ ref’d n.r.e.); Insurance Company of North America v. Stuebing, 594 S.W.2d 565 (Tex.Civ.App.-Fort Worth 1980, writ ref d n.r.e.); and Lee v. Westchester Fire Insurance Co., 534 S.W.2d 392 (Tex.Civ.App.-Amarillo 1976, no writ).

We do not interpret those cases as standing for the proposition suggested by the appellant. First, the cases never stated or held that the three situations, cited by the appellant, were the only ones in which a claimant’s attorney could recover a fee. Second, in each case cited by the appellant, the court’s awarding of attorney’s fees to the claimant’s attorney was not contingent upon whether the attorneys actually filed lawsuits. Each filing of a lawsuit was merely incidental to the recovery of the third-party claim. In each case, the issue was whether attorney’s fees should be paid to the claimant’s attorney. A major factor in the determination was the amount of work the claimant’s attorney had expended inpreparing for trial or settlement. Hartford Insurance, 670 S.W.2d at 704; Union Carbide Corp., 618 S.W.2d at 416; International Insurance Co., 601 S.W.2d at 202; Insurance Company of North America, 594 S.W.2d at 568.

In Lee, 534 S.W.2d 392, the issue was whether the carrier’s attorney had actively participated in trial; however, that issue was important only in determining whether the claimant’s attorney’s fees were recoverable out of the carrier’s subrogation re-coupment. Id. at 395.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gloria Garcia v. Genesis Crude Oil L.P.
Court of Appeals of Texas, 2015
Russell v. METRO. TR. AUTH. OF HARRIS CTY.
343 S.W.3d 825 (Court of Appeals of Texas, 2011)
City of Houston v. Daniels
66 S.W.3d 420 (Court of Appeals of Texas, 2002)
Chavero, Jr., Gilberto v. State
Court of Appeals of Texas, 2001
Texas Department of Transportation v. Able
35 S.W.3d 608 (Texas Supreme Court, 2000)
Howard Earl West, Jr. v. State
Court of Appeals of Texas, 2000
Ford, Doug Lee v. State
Court of Appeals of Texas, 2000
Rossano v. Townsend
9 S.W.3d 357 (Court of Appeals of Texas, 1999)
Parker v. State
985 S.W.2d 460 (Court of Criminal Appeals of Texas, 1999)
Klevenhagen v. International Fidelity Insurance Co.
861 S.W.2d 13 (Court of Appeals of Texas, 1993)
Wilkomirski v. Texas Criminal Information Center
845 S.W.2d 424 (Court of Appeals of Texas, 1992)
City of Carrollton v. Popescu
806 S.W.2d 268 (Court of Appeals of Texas, 1991)
Irving Fireman's Relief & Retirement Fund v. Sears
803 S.W.2d 747 (Court of Appeals of Texas, 1990)
Opinion No.
Texas Attorney General Reports, 1989
Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 1989
Prewitt and Sampson v. City of Dallas
713 S.W.2d 720 (Court of Appeals of Texas, 1986)
Texas Employers Insurance Corp. v. Keenom
716 S.W.2d 59 (Court of Appeals of Texas, 1986)
City of Garland v. Huston
702 S.W.2d 697 (Court of Appeals of Texas, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
682 S.W.2d 650, 1984 Tex. App. LEXIS 6724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-transit-authority-v-plessner-texapp-1984.