Saunders v. ADP TotalSource Fi Xi, Inc.

791 S.E.2d 466, 249 N.C. App. 361, 2016 WL 4598564
CourtCourt of Appeals of North Carolina
DecidedSeptember 6, 2016
Docket15-1390
StatusPublished
Cited by2 cases

This text of 791 S.E.2d 466 (Saunders v. ADP TotalSource Fi Xi, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saunders v. ADP TotalSource Fi Xi, Inc., 791 S.E.2d 466, 249 N.C. App. 361, 2016 WL 4598564 (N.C. Ct. App. 2016).

Opinion

TYSON, Judge.

*362 The superior court's order awarded Plaintiff's attorneys a 25% contingent attorney's fee, payable from retroactive third party attendant care medical compensation awarded by the Industrial Commission. The Industrial Commission had denied a deduction of attorney's fees from the medical compensation award. We vacate the superior court's order for lack of subject matter jurisdiction, and remand.

I. Background

Plaintiff sustained two compensable injuries to his lower back on 6 March 2010 and 7 July 2010. He underwent back surgery in October 2010, but his condition failed to improve. Plaintiff developed left foot drop and reflex sympathetic dystrophy, or complex regional pain syndrome. Defendants did not dispute the payment of disability benefits and have compensated Plaintiff.

Plaintiff retained Henry E. Teich, Esq. to represent him before the Industrial Commission, and on 3 November 2010 he entered into a contingency fee agreement ("the fee agreement") with Mr. Teich. The fee agreement provided Mr. Teich's law firm a contingency fee of "25% of any recovery as Ordered by the North Carolina Industrial Commission." Plaintiff's claim or condition presented no issues of attendant care medical compensation or home modification when the fee agreement was executed.

Plaintiff's condition continued to decline. He and Mr. Teich subsequently amended the fee agreement to provide for a contingency attorney's fee of 25% of any award for ongoing temporary total disability benefits. By order of the Industrial Commission filed 23 April 2012, Mr. Teich began receiving additional compensation of 25% of Plaintiff's temporary total disability compensation, every fourth weekly check, in accordance with the amended fee agreement.

Plaintiff's physical condition further deteriorated to the point where his treating physician concluded he was unable to perform activities of daily living or otherwise live independently. Plaintiff's medical providers prescribed attendant care medical services for him. Defendants received notice of Plaintiff's request for attendant care services in January 2012. A month later, Defendants agreed to provide the recommended attendant care to Plaintiff for a three-month period upon the condition that Defendants be permitted to take the pre-hearing depositions of two of Plaintiff's providers without an order by the Commission. Plaintiff's partner, Glenn Holappa, who is not medically certified or trained, assumed the role as Plaintiff's primary attendant caregiver. Defendants discontinued payment for attendant care medical services after the initial three-month period because Plaintiff failed to allow the promised depositions, *363 and because Plaintiff's physician had ordered attendant care subject to a re-evaluation of Plaintiff's condition after three months.

With the knowledge and approval of Plaintiff and Mr. Holappa, and to assist Mr. Teich, Mark T. Sumwalt, Esq. and his law firm were associated to litigate Defendants' discontinuance of attendant care services to Plaintiff. Attorneys Teich and Sumwalt extensively *470 litigated issues pertaining to attendant care medical compensation, home modifications, equipment needs, prescription medications, psychological treatment, and other medical services before the Industrial Commission.

On 23 December 2013, the Deputy Commissioner issued an Opinion and Award, which awarded retroactive attendant care medical compensation for the time period from 8 May 2012 to 23 December 2013, payable to Plaintiff or Mr. Holappa. The Deputy Commissioner also approved an attorney's fee of 25% of the award of the retroactive attendant care medical services provided. Defendants appealed to the Full Commission.

On 23 February 2015, the Full Commission issued an Opinion and Award, which awarded retroactive medical care compensation to Mr. Holappa, for six hours per day, seven days per week, at a rate of $10.00 per hour from 8 May 2012 until the date of the award. The Full Commission awarded ongoing attendant care medical compensation provided through a home healthcare agency for eight hours per day, seven days per week, until further order of the Commission. The Commission also awarded Plaintiff for his "out of pocket expenses for prescription medications prescribed for treatment of his depression and anxiety" and ordered "Defendants shall pay for all treatment related to Plaintiff's psychological condition with a provider or providers to be agreed upon by the parties."

Plaintiff's counsel did not seek an attorney fee for this additional medical care, treatments, and compensation the Commission awarded. The Commission further determined there is no evidence before the Commission of a fee agreement between Plaintiff's counsel and any of Plaintiff's medical providers, including Mr. Holappa.

The Commission concluded, "to the extent plaintiff's counsel's fee agreement with plaintiff, and specifically the phrase 'any recovery,' could be interpreted to include medical compensation, it is unreasonable under the facts of this case." The Commission ordered no additional attorney's fee for Plaintiff's counsel to be paid from the past attendant care or other medical compensation Defendants were ordered to pay to Mr. Holappa, but ordered Plaintiff's attorney would continue to receive every fourth check from Plaintiff's disability award as a result of their efforts.

*364 After the Industrial Commission declined to award further fees to Attorneys Teich and Sumwalt for medical compensation, Plaintiff and Mr. Holappa indicated to the attorneys their intention to pay them 25% of the medical compensation recovered, without involving the Commission or the courts. Mr. Teich and Mr. Sumwalt acknowledged and informed them it would be unlawful for an attorney to accept the voluntary or further payment of attorney's fees without approval by the Industrial Commission. See N.C. Gen. Stat. § 97-90 (b) (2015).

On 9 March 2015, Plaintiff purported to appeal the Industrial Commission's decision to the Buncombe County Superior Court by petition for judicial review pursuant to N.C. Gen. Stat. § 97-90 (c). Defendants moved to intervene in the superior court proceeding, which was granted. The superior court reversed the decision of the Industrial Commission, and awarded attorney's fees to be paid from the medical compensation award for retroactive attendant care. The court ordered 25% of the amount ordered by the Commission for attendant care medical care compensation to be paid directly to Plaintiff's counsel. Both parties appeal from the superior court's order.

II. Issues

Defendants argue the superior court did not have subject matter jurisdiction under N.C. Gen. Stat. § 97-90

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Related

Saunders v. ADP TotalSource Fi Xi, Inc.
Supreme Court of North Carolina, 2019
Reed v. Carolina Holdings
796 S.E.2d 102 (Court of Appeals of North Carolina, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
791 S.E.2d 466, 249 N.C. App. 361, 2016 WL 4598564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saunders-v-adp-totalsource-fi-xi-inc-ncctapp-2016.