Musse v. Garcia

68 P.3d 165, 31 Kan. App. 2d 574, 2003 Kan. App. LEXIS 400
CourtCourt of Appeals of Kansas
DecidedMay 9, 2003
DocketNo. 88,723
StatusPublished

This text of 68 P.3d 165 (Musse v. Garcia) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Musse v. Garcia, 68 P.3d 165, 31 Kan. App. 2d 574, 2003 Kan. App. LEXIS 400 (kanctapp 2003).

Opinion

Knudson, J.:

Allstate Indemnity Company intervened in its insured’s third-party litigation against a tortfeasor to protect its hen for personal injury protection (PIP) benefits that had been paid. Ultimately, the third-party litigation was settled, and the district court awarded the insured’s attorney 25% of the PIP subrogation recovery as attorney fees. Allstate appeals, contending the law does not provide for the apportionment of attorney fees under the uncontroverted facts of the case and, alternatively, the apportionment was grossly unfair.

We affirm.

The parties agree there was a recovery of $23,535.22 duplicative of PIP benefits and that a 35% contingent fee was reasonable. [575]*575What is at issue is the district court’s attorney fees award of 25% to the insured’s attorney with only 10% to Allstate’s attorney.

Allstate’s argument is straightforward — K.S.A. 40-3113a(e) is not applicable where the insurer retained its own attorney who intervened and was solely responsible for the recovery of PIP benefits that had been paid.

K.S.A. 40-3113a(a) provides that an injured person who has received PIP benefits has the right to sue the tortfeasor who caused the injury. The insurance company is entitled to subrogation “to the extent of duplicative [PIP] benefits provided” and a lien in that amount, as well as the right to intervene in the action to protect its lien. K.S.A. 40-3113a(b). K.S.A. 40-3113a(e) states that “the court shall fix attorney fees which shall be paid proportionately by the insurer . . . and the injured person ... in the amounts determined by the court.”

Interpretation of a statute is a question of law, and the appellate court’s review is unlimited. Babe Houser Motor Co. v. Tetreault, 270 Kan. 502, 506, 14 P.3d 1149 (2000).

Unfortunately, we do not have a bright-line case that specifically considers application of K.S.A. 40-3113a(e) under the facts in this litigation. However, a panel of our court has previously stated:

“[K.S.A. 40-3113a(e)] does give the insurer authority to intervene in its insured’s action to protect its lien and right of subrogation, and gives the trial court the right to determine the entire fee question after judgment. If it does intervene the insurer obviously will incur additional attorney fees, but will not be relieved of its obligation to the insured’s attorney. Cf. Potts v. Goss, 233 Kan. 116, [660 P.2d 555 (1983),] where, although it didn’t intervene, the company hired counsel to observe and eventually brought an independent action. Despite the obvious additional expense, the company was found liable for its share of fees and its contention to the contrary was found to be frivolous.” (Emphasis added.) American Family Mut. Ins. Co. v. Griffin, 9 Kan. App. 2d 482, 486, 681 P.2d 683 (1984).

The dicta in Griffin is the only time a Kansas court has addressed this precise issue. However, the Supreme Court of Kentucky has applied a similar statute in the way suggested by Griffin. In Woodall v. Grange Mut. Cas. Co., 648 S.W.2d 871 (Ky. 1983), the insured plaintiffs attorney, Woodall, filed a supplementary complaint against the plaintiffs insurance company, Grange, seeking [576]*576attorney fees. Woodall had filed suit on behalf of the plaintiffs, and the jury awarded them a $10,000 judgment.. $3,724.91 went to Grange to cover “basic reparation benefits” paid to the plaintiffs.

Woodall argued that even though Grange had intervened in the injured plaintiff s lawsuit and obtained independent counsel, he was still entitled to attorney fees under the applicable Kentucky statute, which read as follows:

“ ‘An attorney representing a secured person in any action filed under KRS 304.39-060 shall be entitled to a reasonable attorney’s fee in the event that reparation benefits paid to said secured person by that secured person’s reparation’s obligor are reimbursed by any insurance carrier on behalf of a tort-feasor who is the defendant in any such action filed by the said secured person or in the event such potential “action” is settled by said potential tort-feasor’s insurance carrier on his behalf prior to the filing of any such suit.’ ” Woodall, 648 S.W.2d at 873.

The Woodall court construed the language of the applicable statute to mandate a reasonable attorney fee to Woodall for his work in recovering the reimbursement of benefits, despite the fact that Grange had hired independent counsel to intervene and represent its interests in the action. The court found no abuse of discretion in the trial court’s decision to award Woodall 33% of Grange’s subrogation recovery as attorney fees. 648 S.W.2d at 873.

Our own statute is similar to the one construed in Woodall. Kentucky’s “basic reparation benefits” includes net loss suffered through the operation, maintenance, or use of a motor vehicle including: medical expenses, work loss, replacement services loss, survivor’s economic loss, and survivor’s replacement services loss. Ky. Rev. Stat. Ann. § 304.39-020(2) and (5) (Michie/Bobbs-Merrill 2001). In Kansas, “[p]ersonal injury protection benefits” include: disability benefits, funeral benefits, medical benefits, rehabilitation benefits, and survivors’ benefits. K.S.A. 40-3103(q).

Applying the statutory interpretations of Griffin and Woodall to our statute, the language indicates that the fact that the insurance company has retained their own counsel does not exempt it from payment of attorney fees under K.S.A. 40-3113a(e). The statute allows for the proportionate payment of attorney fees if, as in this case, the trial court determines the plaintiffs attorney has performed work leading to the recovery of PIP benefits.

[577]*577In Ballweg v. Farmers Ins. Co., 228 Kan. 506, 618 P.2d 1171 (1980), the Kansas Supreme Court determined K.S.A. 40-3113a

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

Related

Potts v. Goss
660 P.2d 555 (Supreme Court of Kansas, 1983)
Bardwell v. Kester
815 P.2d 120 (Court of Appeals of Kansas, 1991)
Ballweg v. Farmers Insurance
618 P.2d 1171 (Supreme Court of Kansas, 1980)
American Family Mutual Insurance v. Griffin
681 P.2d 683 (Court of Appeals of Kansas, 1984)
Howard v. Edwards
689 P.2d 911 (Court of Appeals of Kansas, 1984)
Woodall v. Grange Mutual Casualty Co.
648 S.W.2d 871 (Kentucky Supreme Court, 1983)
Babe Houser Motor Co. v. Tetreault
14 P.3d 1149 (Supreme Court of Kansas, 2000)
Davis v. Miller
7 P.3d 1223 (Supreme Court of Kansas, 2000)
Dalmasso v. Dalmasso
9 P.3d 551 (Supreme Court of Kansas, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
68 P.3d 165, 31 Kan. App. 2d 574, 2003 Kan. App. LEXIS 400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/musse-v-garcia-kanctapp-2003.