Powers v. City of North Royalton

659 N.E.2d 338, 103 Ohio App. 3d 269, 1995 Ohio App. LEXIS 1425, 1995 WL 686475
CourtOhio Court of Appeals
DecidedMay 4, 1995
DocketNo. 68138.
StatusPublished
Cited by2 cases

This text of 659 N.E.2d 338 (Powers v. City of North Royalton) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powers v. City of North Royalton, 659 N.E.2d 338, 103 Ohio App. 3d 269, 1995 Ohio App. LEXIS 1425, 1995 WL 686475 (Ohio Ct. App. 1995).

Opinion

Per Curiam.

Defendants-appellants, the Administrator of the Ohio Bureau of Workers’ Compensation and the Industrial Commission of Ohio, appeal the order of the trial court that the Ohio Bureau of Workers’ Compensation pay attorney fees and costs after a claimant was successful upon an appeal by the employer of an order of the Industrial Commission.

Appellants assign the following errors for review:

“I. The trial court erred in ordering that fees and costs be paid by the Ohio Bureau of Workers’ Compensation.

“II. The trial court erred in awarding the sum of $2,5000.00 [sic] as attorney fees.”

As the appeal has merit, the judgment of the trial court is reversed.

*272 I

The city of North Royalton appealed the allowance of Arlen Powers’s claim for Workers’ Compensation for injuries received while in the employ of North Royalton. Appellants did not contest Powers’s right to receive the benefits. On July 18, 1994, a jury trial was held in Cuyahoga County Common” Pleas Court, which returned a verdict in favor of Powers. The trial court ordered North Royalton to pay $2,500 for Powers’s attorney fees and deposition costs. The trial court later changed its journal entry pursuant to Civ.R. 60(A) to order the Ohio Bureau of Workers’ Compensation to pay the fees and costs. The amount of attorney fees was listed as “$2,5000.00” in the second journal entry.

II

In their first assignment of error, appellants contend the trial court erred by assessing fees and costs against the Bureau of Workers’ Compensation. Appellants argue that pursuant to R.C. 4123.512(F), such fees and costs are to be paid by the party contesting the claimant’s right to participate in the fund. Appellants maintain that because North Royalton disputed Powers’s claim, it, and not the Bureau of Workers’ Compensation, is responsible for Powers’s attorneys fees and costs.

North Royalton counters by arguing that the attorney fees are to be taxed against either the state fund or a self-insured employer. North Royalton asserts that the proper source to be taxed is the risk account of the Bureau of Workers’ Compensation when the employer is not self-insured but is insured by the state fund.

R.C. 4123.512(F) provides:

“The cost of any legal proceedings authorized by this section, including an attorney’s fee to the claimant’s attorney to be fixed by the trial judge, based upon the effort expended, in the event the claimant’s right to participate or to continue to participate in the fund is established upon the final determination of an appeal, shall be taxed against the employer or the commission if the commission or the administrator rather than the employer contested the right of the claimant to participate in the fund. The attorney’s fee shall not exceed twenty-five hundred dollars.”

In Alford v. Republic Steel Corp. (1983), 12 Ohio App.3d 145, 12 OBR 468, 467 N.E.2d 567, this court interpreted the language of R.C. 4123.519, predecessor to R.C. 4123.512(F), to mean:

“[W]here the claimant is victorious, costs shall be taxed against the employer if the employer contested the claimant’s right to benefits, but costs will be taxed *273 against the Industrial Commission if the Industrial Commission or administrator contested the claimant’s right to benefits.” Id. at 146, 12 OBR at 468-469, 467 N.E.2d at 567. Accord Sorci v. Gen. Motors Corp. (1983), 13 Ohio App.3d 223, 13 OBR 274, 468 N.E.2d 916.

The award of attorney fees is mandatory under the statute. This affords the claimant relief from litigation expenses if he ultimately prevails either by winning his own appeal or by successfully defending against an appeal by his employer. Wickline v. Ohio Bell Tel. Co. (1983), 9 Ohio App.3d 32, 35, 9 OBR 34, 36, 457 N.E.2d 1192, 1195.

“The state has a legitimate interest in seeing employees compensated for work-related injuries. Taxing costs to employers who contest claims ultimately determined to be valid is a procedure rationally related to the state’s interest in seeing those injured employees compensated.” Sorci, supra, at 225, 13 OBR at 276, 468 N.E.2d at 918.

The statute serves this public policy in assessing attorney fees as an incident of a successful claimant’s recovery. Painter v. Midland Steel Products Co. (1989), 65 Ohio App.3d 273, 583 N.E.2d 1018. Further, an employer may be taxed for the costs of depositions as a cost of any legal proceeding authorized by the statute. Moore v. Gen. Motors Corp. (1985), 18 Ohio St.3d 259, 18 OBR 314, 480 N.E.2d 1101, syllabus.

North Royalton relies on language in R.C. 4123.512(D), which states in pertinent part:

“The bureau of workers’ compensation shall pay the cost of the deposition filed in court and of copies of the deposition for each party from the surplus fund and charge the costs thereof against the unsuccessful party if the claimant’s right to participate or continue to participate is finally sustained or established in the appeal.”

North Royalton argues that Akers v. Serv-A-Portion, Inc. (1987), 31 Ohio St.3d 78, 31 OBR 190, 508 N.E.2d 964, supports its position. In Akers, the court held that deposition costs are to be paid from the surplus fund, whether or not the claimant successfully establishes a right to participate under the Workers’ Compensation Act. If the claimant’s right to participate is finally sustained or established, the fund is to be reimbursed as the costs are charged against the unsuccessful party (that is, the self-insured employer or the Industrial Commission).

R.C. 4123.512(F) states that the cost of any legal proceedings authorized by this section is to be taxed against the employer if it disputes the right of the ultimately successful claimant to participate in the fund. It makes no distinction between self-insured employers and those insured by the state fund. *274 Courts may not delete words used in a statute or insert words not used. Cline v. Ohio Bur. of Motor Vehicles (1991), 61 Ohio St.3d 93, 97, 573 N.E.2d 77, 80. R.C. 4123.01(B) defines “employer” as:

“(1) The state, including state hospitals, each county, municipal corporation, township, school district, and hospital owned by a political subdivision or subdivisions other than the state;

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Bluebook (online)
659 N.E.2d 338, 103 Ohio App. 3d 269, 1995 Ohio App. LEXIS 1425, 1995 WL 686475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powers-v-city-of-north-royalton-ohioctapp-1995.