Morgan Ex Rel. Estate of Morgan v. Public Service Co.

652 P.2d 1226, 98 N.M. 775
CourtNew Mexico Court of Appeals
DecidedOctober 5, 1982
Docket5588
StatusPublished
Cited by12 cases

This text of 652 P.2d 1226 (Morgan Ex Rel. Estate of Morgan v. Public Service Co.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan Ex Rel. Estate of Morgan v. Public Service Co., 652 P.2d 1226, 98 N.M. 775 (N.M. Ct. App. 1982).

Opinion

OPINION

WOOD, Judge.

This appeal involves attorney fees in a worker’s compensation case. We discuss: (1) jurisdiction to award attorney fees; (2) an award of attorney fees based on unsuccessful efforts to obtain a lump-sum award; and (3) the amount of attorney fees awarded in connection with the death benefits.

Jurisdiction

Johnny Ray Morgan died from injuries received while at work on October 12, 1979; he fell into a transformer. An unexplained fall being involved, defendant was concerned with the cause of death. See Luvaul v. A. Ray Barker Motor Company, 72 N.M. 447, 384 P.2d 885 (1963). Defendant sought information as to the cause of death from the office of the medical investigator. Defendant “informed the plaintiff that we were awaiting the report of death to determine whether Mr. Morgan’s death arose out of his employment and we assured her that Public Service Company would abide by its obligations to her under the Workmen’s Compensation Act if Mr. Morgan’s death was job related.” Plaintiff’s attorney filed a compensation claim on November 26, 1979. Defendant received a report on November 28, 1979 which satisfied defendant’s concerns as to cause of death.

On December 4, 1979 defendant orally offered to pay full compensation benefits to Mr. Morgan’s dependents, and a tentative settlement was reached. Documents reflecting the tentative settlement were mailed to plaintiff’s attorney on December 5, 1979. These documents included a stipulation that: (a) Mr. Morgan’s death was compensable; (b) the widow arid her minor child were the sole dependents; (c) the widow was the proper person to receive benefits for the minor child; (d) maximum compensation benefits were to be paid, together with funeral expenses provided by the compensation statute; and (e) the benefits were to be paid until further order of the court, subject to a 600-week maximum. A proposed judgment, consistent with the stipulation, was enclosed. An order appointing a guardian ad litem for the minor child was enclosed. A check for the funeral expenses was enclosed. The proposed judgment provided that plaintiff be awarded a reasonable attorney fee; the amount was to be set by the court.

Plaintiff declined to execute the settlement papers; instead, plaintiff sought, unsuccessfully, a lump-sum compensation award. Ultimately, judgment was entered, nunc pro tunc, as of December 4, 1979 in accordance with the tentative settlement reached on that date. There is no issue as to the propriety of entering the judgment nunc pro tunc. The judgment awarded plaintiff a “reasonable” attorney fee. After two hearings concerning the amount of the attorney fee, a judgment was entered awarding $5,000.00 as a fee.

It is not disputed that the claim for compensation benefits, filed on November 26, 1979, for a death occurring on October 12, 1979, was a proper claim and was not premature. Section 52-l-30(A), N.M.S.A.1978. Defendant paid accrued compensation benefits and has continued to pay compensation benefits; however, benefits were not paid until after the compensation claim had been filed in district court. It is not disputed that plaintiff failed to collect compensation benefits greater than what defendant offered to pay on December 4, 1979, more than thirty days prior to any court hearing. Under these circumstances, defendant contends that the trial court lacked jurisdiction to award any attorney fees. Defendant uses jurisdiction in the sense of power or authority to award attorney fees. See Heckathorn v. Heckathorn, 77 N.M. 369, 423 P.2d 410 (1967).

Section 52-1-54, N.M.S.A.1978, states that it is unlawful for an attorney to receive any fees, directly or indirectly, in connection with any compensation claim, except as hereinafter provided. Paragraphs C and D are the pertinent provisions. Paragraph C states that when the court’s jurisdiction (over persons and subject matter— Heckathorn) is invoked to approve a settlement of a compensation claim “the court shall determine and fix a reasonable fee for claimant’s attorney * * *.” Paragraph D states that when compensation to which a person is entitled is “refused and the claimant shall thereafter collect compensation through court proceedings in an amount in excess of the amount offered in writing by an employer thirty days or more prior to the trial by the court of the cause, then the compensation to be paid the attorney for the claimant shall be fixed by the court trying the same * *

Defendant asserts that plaintiff collected compensation through court proceedings. See Rumpf v. Rainbo Baking Go., 96 N.M. 1, 626 P.2d 1303 (Ct.App.1981). It is undisputed that plaintiff did not collect compensation in an amount in excess of the amount offered in writing and that the written offer was more than thirty days before any court hearing concerned with the compensation benefits. Defendant relies on Lee v. United States Fidelity & Guaranty Company, 66 N.M. 351, 348 P.2d 271 (1960), which states: “Appellee offered the exact amount for which judgment was subsequently entered * * * and therefore the court had no power under the statute to grant attorney fees.”

The fallacy in defendant’s contention is its assertion that the award of attorney fees was under § 52-1—54(D). Paragraph D, by its express wording, applies to compensation cases that are tried; this paragraph refers to “prior to the trial” and “the court trying the same”. There has never been a trial in this case concerning the award of compensation benefits; defendant’s answer admitted liability for maximum benefits. The only issue tried was the claim for lump-sum compensation and, in that, plaintiff was unsuccessful.

The judgment awarding compensation benefits recites that the judgment was based on a stipulation between plaintiff’s attorney, defendant’s attorney and the guardian ad litem. The findings in the judgment concerning compensability, dependency, and payment of compensation to the dependents, accord with .the content of the stipulation drafted pursuant to the tentative settlement of December 4, 1979. The judgment was entered, nunc pro tunc, as of December 4, 1979.

The award of attorney fees to plaintiff was pursuant to a settlement of a compensation claim under § 52-l-54(C), and not after trial under § 52-l-54(D). Paragraph D is not applicable. The trial court had “power” to fix a reasonable attorney fee under Paragraph C. The trial court did not lack jurisdiction to award an attorney fee. Award of Attorney Fee for Unsuccessful Efforts to Obtain a Lump-Sum Award

The trial court awarded $1,500.00 as an attorney fee “for the services to the Plaintiff in the unsuccessful pursuit of the lump sum claim.”

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Bluebook (online)
652 P.2d 1226, 98 N.M. 775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-ex-rel-estate-of-morgan-v-public-service-co-nmctapp-1982.