Physicians & Surgeons Hospital v. Young

750 So. 2d 1177, 2000 La. App. LEXIS 50, 2000 WL 61281
CourtLouisiana Court of Appeal
DecidedJanuary 26, 2000
DocketNo. 32,641-WCA
StatusPublished
Cited by1 cases

This text of 750 So. 2d 1177 (Physicians & Surgeons Hospital v. Young) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Physicians & Surgeons Hospital v. Young, 750 So. 2d 1177, 2000 La. App. LEXIS 50, 2000 WL 61281 (La. Ct. App. 2000).

Opinions

L GASKINS, J.

The defendant, Physicians and Surgeons Hospital (P & S), appeals from a judgment of the Office of Workers’ Compensation (OWC), awarding attorney fees to James D. Caldwell in connection with his representation of the claimant, Kathy D. Young. For the following reasons, we reverse.

FACTS

Kathy D. Young was employed at P & S Hospital. On October 16, 1992, she suffered a herniated disc while attempting to lift a patient. She retained James D. Caldwell as her attorney and sought to recover workers’ compensation benefits. Ms. Young entered into a contingency fee agreement with Mr. Caldwell whereby she agreed to pay 34% of any recovery if the case was not litigated, 40% of any recovery if the case was litigated, or “as provided by law.” In fact, La. R.S. 23:1141 provides a ceiling on attorney fees in workers’ compensation matters at a rate much lower than that agreed to by Ms. Young in her contract with Mr. Caldwell.

On May 4, 1994, the OWC found that Ms. Young’s injury was work-related and ordered that P & S reinstate her temporary total disability benefits from the time terminated until further order of the OWC. The OWC also ordered that P & S pay Ms. Young’s related medical bills. No penalties and attorney fees were assessed against P & S.

Following a judgment in favor of Ms. Young, Mr. Caldwell sought to secure payment of his attorney fees and obtained an order of approval from the OWC, in accordance with La. R.S. 23:1141(B), as it read [1179]*1179at that time, specifying that 20% of the first $10,000 recovered and 10% of any award in excess of $10,000 be awarded to him. The court then calculated that this amount was $2,319.76. This figure was based upon the past due temporary total disability 12benefits payable to Ms. Young, $13,197.90. P & S issued a check for this amount to Ms. Young and Mr. Caldwell. Ms. Young then changed attorneys.

Later, in accordance with the May 4, 1994 judgment in favor of Ms. Young, P & S made payment on her medical expenses proved at trial in the amount of $58,103.87. The medical expenses were paid directly to the health care providers, although it is not clear from the record when these payments were made.

On July 21, 1998, P & S filed a disputed claim for compensation with the OWC, contending that Mr. Caldwell was claiming entitlement to a portion of the medical benefits paid on behalf of Ms, Young. Mr. Caldwell urged that the OWC judgment of May 4, 1994 specifically provided that he was entitled to recover attorney fees on all amounts he recovered on behalf of Ms. Young, including the medical expenses. He claimed that the judgment was final and was not appealed. Therefore, he argued that P & S was attempting to reliti-gate the judgment by denying that he is entitled to a statutory lien on the medical expenses.

On January 25, 1999, a new workers’ compensation judge assigned to the case issued a judgment finding that Mr. Caldwell was entitled to recover against P & S Hospital for 10% of all sums paid by P & S to medical providers in satisfaction of the May 4,1994 judgment. In written reasons for judgment, the workers’ compensation judge found that La. R.S. 23:1141 gave Mr. Caldwell a privilege upon the compensation awarded his former client. Also, La. R.S. 9:5001 provided a special privilege to Mr. Caldwell for the amount of his professional services in the May 4, 1994 judgment obtained by him. The court then found that the May 4, 1994 judgment was in favor of Ms. Young and not in favor of her medical providers. Therefore, the court concluded that Mr. Caldwell was entitled to a portion of the May 4, 1994 judgment, including medical expenses, equal to 10% of any sum paid in satisfaction of said judgment. P & S suspensively appealed the judgment, arguing that the workers’ compensation judge erred in finding that P & S l.gHospital owes additional attorney fees equal to 10% of the medical payments made on behalf of Ms. Young.

P & S contends that, according to Mr. Caldwell, payment may not be made directly to the medical providers in a workers' compensation case pursuant to judgment without including the claimant and the claimant’s attorney on the check issued to the health care provider. P & S asserts that apparently the workers’ compensation judge agreed with this reasoning, in ruling that Mr. Caldwell is entitled to 10% of the medical payments in satisfaction of his attorney fees. P & S argues that a check was issued to Mr. Caldwell and Ms. Young in the amount of $13,917.90, representing the temporary total disability benefits owed to her, and that any attorney fees owed Mr. Caldwell should have been satisfied from those funds when the attorney had them in his possession. P & S maintains that it was Mr. Caldwell’s obligation to disburse the funds so as to protect his lien. The hospital urges that an employer not assessed with attorney fees is not obligated to pay those fees separately, unless punitively cast with fees.

DISCUSSION

The issue in this case is whether, under the facts presented here, Mr. Caldwell is entitled to recover as attorney fees a portion of the medical expenses paid by P & S on behalf of Ms. Young. At the outset, it is important to note that Mr. Caldwell is claiming entitlement only to a portion of the medical expenses proved at trial and awarded to the plaintiff in the May 4, 1994 judgment. Mr. Caldwell specifically stated that he is not asserting a lien regarding future medical expenses and he acknowledges that he is not entitled to attorney fees based on future medical expenses. It [1180]*1180is also noteworthy that this case concerns the statutory privilege on a judgment allowed to attorneys in workers’ compensation cases to secure payment of the fees owed to them by their clients. It does not address the | ¿imposition of penalties and attorney fees upon an employer who arbitrarily and capriciously withholds or terminates benefits under La. R.S. 23:1201.2.

La. R.S. 37:2181 provides that an attorney may enter into an agreement with his client on the question of the amount of fees due to the attorney. La. R.S. 9:50012 provides for a privilege for an attorney for fees on all judgments obtained by the attorney. The fee contract between Ms. Young and Mr. Caldwell was subject to the special limitations and conditions of the workers’ compensation law. At the time of the 1994 award, La. R.S. 23:1141 provided as follows:

A. Claims of attorneys for legal services arising under this Chapter shall not be enforceable unless reviewed and approved by a workers’ compensation judge. If so approved, such claims shall have a privilege upon the compensation payable or awarded, but shall be paid therefrom only in the manner fixed by the workers’ compensation judge. No privilege shall exist or be approved by a | sworkers’ compensation judge on injury benefits as provided in R.S. 23:1221(4)(s).
B. In no case shall the fees of an attorney who renders service for an employee coming under this Chapter exceed twenty percent of the first ten thousand dollars and ten percent of the part of any award in excess of ten thousand dollars.3

Therefore, although an attorney may obtain a privilege on compensation awarded, the claim for attorney fees must be reviewed and approved by a workers’ compensation judge. Further, a limit on the amount of the fee recoverable is imposed by the statute.

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Bluebook (online)
750 So. 2d 1177, 2000 La. App. LEXIS 50, 2000 WL 61281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/physicians-surgeons-hospital-v-young-lactapp-2000.