Seward v. Bud Avants Co.

985 S.W.2d 332, 65 Ark. App. 88, 1999 Ark. App. LEXIS 48
CourtCourt of Appeals of Arkansas
DecidedFebruary 10, 1999
DocketCA 98-906
StatusPublished
Cited by3 cases

This text of 985 S.W.2d 332 (Seward v. Bud Avants Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seward v. Bud Avants Co., 985 S.W.2d 332, 65 Ark. App. 88, 1999 Ark. App. LEXIS 48 (Ark. Ct. App. 1999).

Opinion

Sam Bird, Judge. The

claimant in this workers’ compensation case was injured in 1988, and, in an opinion issued by the administrative law judge on March 12, 1993, found to be permanently and totally disabled under the odd-lot doctrine. Maximum attorney fees were ordered, “to be paid in accordance with A.C.A. §11-9-715, § 11-9-716, § 11-9-801, and WCC Rule 10,” with respondents (the employer and its workers’ compensation carrier) to pay “their proportionate share.” That opinion was not appealed to the Commission within thirty days, and, therefore, became a final order. However, the respondent employer’s workers’ compensation insurance carrier (Rockwood Insurance Company) had apparently become insolvent, and the Arkansas Property and Casualty Insurance Guaranty Fund (Fund), which assumed the carrier’s obligations1, requested a hearing to determine the amount of the attorney’s fee awarded and whether the claimant’s share of the fee should be deducted from his weekly disability benefit that the Fund was obligated to pay. Although appellant argued to the administrative law judge that the March 12, 1993, opinion was not appealed, and was, therefore, res judi-cata, the administrative law judge entered an order on September 26, 1995, directing payment of an attorney’s fee of $7,873, “with one-half of said fee to be paid by the claimant out of the benefits which he is receiving from the [Fund] and one-half to be paid by the respondent employer, The Bud Avants Company.”2

Appellant appealed the decision of the law judge, arguing that the wrong figures were used to calculate the lump-sum attorney’s fee and that the law judge erred in requiring the claimant to pay his one-half of the fees out of his weekly benefits. On March 13, 1997, the Commission affirmed the law judge’s order, as modified. Appellant appealed to this court and, on January 14, 1998, we remanded for the Commission to address appellant’s argument that the Commission did not have jurisdiction because the March 1993 order was not appealed and was, therefore, res judicata.

In its opinion on remand, the Commission found that the March 1993 order became final after thirty days when it was not appealed, and, therefore, the issues decided by that order were res judicata. However, it also held that the doctrine of res judicata “does not bar issues which were not previously decided and could not have been decided.” The Commission then held that the “September 26, 1995, order was an attempt to settle and clarify the award of [attorney] fees awarded in the March 12, 1993, opinion.” The Commission said that because the March 1993 opinion ordered that attorney’s fees be paid in a lump sum but did not calculate the amount, the subsequent order determining the amount of the fee and the way it was to be paid was a collateral matter, which was not litigated and settled in the previous order and was not, therefore, res judicata. It stated: “While claimant’s attorney contended entitlement to a fee based upon controversion, the amount of the actual fee was never litigated until respondent’s motion.”

Appellant has once again appealed to this court and makes three arguments:

I. Chief Administrative Law Judge Shelton and the full Commission lacked jurisdiction to enter any order modifying the order of Administrative Law Judge Hogan which required the appellees to pay a lump-sum attorney’s fee to appellant’s attorney in accordance with A.C.A. § 11-9-715, A.C.A. § 11-9-716, A.C.A. § 11-9-801 and WCC Rule 10.
II. The decision of the full Commission that the appellant’s one-half of the attorney’s fee awarded should be deducted from any of his accrued benefits or by withholding ten percent of his bi-weekly checks until his one-half of the attorney’s fee is paid in full should be reversed.
III. The decision of the Commission as to the figures used to calculate the attorney’s fee and their calculation of that amount should be affirmed.

We affirm the Commission’s findings on points one and two, and reverse and remand on point three.

Appellant’s first argument is that the Commission did not have jurisdiction to enter the September 26, 1995, order because the March 1993 judgment was not appealed. Appellant contends the law of collateral estoppel, issue preclusion, and res judicata prevented the Commission from having jurisdiction. We disagree. The March 12, 1993, order requiring payment of maximum attorney’s fees to appellant’s attorney was not final and appealable as to the specific amount of the fee, nor could it be. The fee due an attorney for representing a claimant in a workers’ compensation case is based on a percentage of the benefits the claimant receives. See Ark. Code Ann. § 11-9-715 (Repl. 1996). As long as the claimant is receiving benefits, the attorney is entitled to a fee in an amount not to exceed a statutorily specified percentage of the amount of benefits received by the claimant. Ark. Code Ann. § ll-9-715(a)(l)(B). Therefore, until the claimant is no longer receiving benefits, the total amount of the fee due to a claimant’s attorney cannot be determined. Consequently, we agree with the Commission’s conclusion that the administrative law judge’s September 26, 1995, opinion that merely calculated the amount of appellant’s attorney’s fee and specified by whom it was to be paid, was not barred by res judicata because that issue had not been litigated or determined by the March 12, 1993, opinion.

Appellant also argues that the decision of the full Commission that the appellant’s one-half of the attorney’s fee awarded should be deducted from any of his accrued benefits or by withholding ten percent of his bi-weekly checks until his one-half of the attorney’s fee is paid in full, should be reversed. Appellant contends that since the March 1993 order stated that the attorney’s fee was to be paid in lump sum, the award is not required to be paid one-half by each party but is to be paid in full by the employer. He reasons that when the legislature amended Ark. Code Ann. § 11-9-715 to require the claimant and respondents to split the attorney’s fee in half, it did not amend the lump-sum section, and, consequently, the division of the attorney’s fee between the parties does not apply when the Commission’s order specifies that the attorney’s fee is to be paid in a lump sum pursuant to Ark. Code Ann. § 11-9-716 (Repl. 1996). Appellant cites no authority3 in support of his interpretation of § 11-9-716, and his argument overlooks the language of the order itself, which provides that appellees are to pay “their proportionate share of attorney’s fees.”

Arkansas Code Annotated section ll-9-715(a)(2)(B)(i) (Repl. 1996) provides:

In all other cases whenever the commission finds that a claim has been controverted, in whole or in part, the commission shall direct that fees for legal services be paid to the attorney for the claimant as follows: One-half (V2) by the employer or carrier in addition to compensation awarded; and one-half (V2) by the injured employee or dependents of a deceased employee out of compensation payable to them.

Thus, the appellant’s argument that the employer is to pay all the attorney’s fee when it is awarded as a lump sum is also contradicted by the statute.

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Related

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290 S.W.3d 37 (Court of Appeals of Arkansas, 2008)
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Meredith v. Buchman
101 F. Supp. 2d 764 (E.D. Arkansas, 2000)

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Bluebook (online)
985 S.W.2d 332, 65 Ark. App. 88, 1999 Ark. App. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seward-v-bud-avants-co-arkctapp-1999.