Spinak, Levinson & Associates v. Industrial Commission

568 N.E.2d 41, 209 Ill. App. 3d 120, 154 Ill. Dec. 41, 1990 Ill. App. LEXIS 1975
CourtAppellate Court of Illinois
DecidedDecember 28, 1990
Docket1-89-3028 WC
StatusPublished
Cited by13 cases

This text of 568 N.E.2d 41 (Spinak, Levinson & Associates v. Industrial Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spinak, Levinson & Associates v. Industrial Commission, 568 N.E.2d 41, 209 Ill. App. 3d 120, 154 Ill. Dec. 41, 1990 Ill. App. LEXIS 1975 (Ill. Ct. App. 1990).

Opinions

JUSTICE McCULLOUGH

delivered the opinion of the court:

The Industrial Commission (Commission) awarded the law firm of Spinak, Levinson & Associates a $100 nominal attorney fee award for its representation of claimant in an underlying workers’ compensation proceeding. The law firm appeals from a circuit court order confirming that award, contending (1) it is entitled to a much larger sum based on the concept of quantum meruit, (2) it is not bound by the attorney representation agreement it executed with the client, (3) additional fees are warranted because the services it performed were “extraordinary,” and (4) the fee limitation in section 16a of the Workers’ Compensation Act (Act) (Ill. Rev. Stat. 1989, ch. 48, par. 138.16a), as construed by the Commission, diminishes the possibility that injured workers will be able to obtain competent, zealous legal representation needed to secure benefits.

The underlying compensation proceeding began when claimant, pro se, filed a claim against his employer for a back injury he suffered in 1982. In November 1983, an arbitrator rejected a proposed settlement in the amount of 35/? weeks temporary total disability and 20% loss of the use of claimant’s right leg under section 8(e) of the Act (Ill. Rev. Stat. 1989, ch. 48, par. 138.8(e)) (40 weeks disability) after claimant expressed dissatisfaction with waiving his right to future medical benefits.

Claimant then retained the plaintiff law firm which, after some preliminary work, negotiated a second settlement proposal from the employer which increased the offer of benefits to 25% loss of the use of claimant’s right leg (50 weeks disability). Claimant refused this offer as well because it also required that he waive future medical benefits.

The issue was then tried before the arbitrator, who awarded 34/? weeks temporary total disability and an additional 40 weeks permanent partial disability to the extent of 8% of the man-as-a-whole provision of section 8(d)(2) of the Act (Ill. Rev. Stat. 1989, ch. 48, par. 138.8(d)(2)). Although this amount did not exceed either of the written offers previously made, it did automatically entitle claimant to future medical benefits. Both claimant and employer sought review before the Commission, which affirmed the arbitrator.

A dispute arose between claimant and the law firm over the amount of attorney fees. The law firm filed a motion for fees before the Commission requesting 20% of the total award of $6,535.64, which the employer had tendered to claimant in satisfaction of the arbitration award. After hearing, the Commission awarded the law firm $115 in attorney fees.

The law firm appealed to the circuit court, which remanded to the Commission for further findings. The court specifically stated in its order “that it is a legitimate objective to keep future medical benefits open, and that said benefits have value.” Before the Commission on remand, the law firm filed a renewed motion for attorney fees, this time for $2,500, which it represented was its reasonable fee based on quantum meruit. After further hearing, the Commission determined that the value of future medical benefits was $200 and awarded the law firm 20% of that amount ($40), making a total attorney fee award of $155.

The law firm again appealed. This time the circuit court reversed the Commission’s finding that future medical benefits had a value of $200, concluding this sum was arbitrary and conjectural. The case was again remanded to the Commission to determine if attorney fees should be granted to the law firm for the time expended, if any, in helping to keep open claimant’s right to future medical benefits.

Upon further remand, the Commission determined there was no evidence that any time was expended by the law firm in keeping claimant’s access to future medical benefits open. In the first instance, by exercising the right to a hearing before the arbitrator, the right to future medical benefits was assured by operation of law upon the finding of some permanent disability without any specific activity being undertaken by the law firm. The Commission also found that the energies the attorneys did expend were directed to the gathering of the physicians’ reports, which related only to the issue of the nature and extent of claimant’s present permanent disability, rather than to any future medical expenses. The Commission then awarded $100 as an attorney fee. After further appeal by the law firm, the Commission’s decision was affirmed and the law firm appeals.

Section 16a of the Act states in pertinent part:

“With respect to any and all proceedings in connection with any initial or original claim under this Act, no claim of any attorney for services rendered in connection with the securing of compensation for an employee or his dependents, whether secured by agreement, order, award or a judgment in any court shall exceed 20% of the amount of compensation recovered and paid, unless further fees shall be allowed to the attorney upon a hearing by the Commission fixing fees, and subject to the other provisions of this Section. ***
(C) All attorneys’ fees in connection with the initial or original claim for compensation shall be fixed pursuant to a written contract on forms prescribed by the Commission between the attorney and the employee or his dependents, and every attorney, whether the disposition of the original claim is by agreement, settlement, award, judgment or otherwise, shall file his contract with the Chairman of the Commission who shall approve the contract only if it is in accordance with all provisions of this Section.
* * *
(H) With regard to any claim where the amount to be paid for compensation does not exceed the written offer made to the claimant or claimants by the employer or his agent prior to representation by an attorney, no fees shall be paid to any such attorney.” Ill. Rev. Stat. 1989, ch. 48, pars. 138.16a(B), (C), (H).

In this case, the parties executed a standard fee agreement, which provided for fees in a sum equal to:

“1. 50% of any amount received in excess of the written offer, if any, or 20% (not to exceed 20%) of the total amount received for compensation for permanent disability caused by the accident, whichever compensation sum of money is less; provided, however, if the amount received for compensation for permanent disability does not exceed the written offer, if any, attorneys shall receive no fee for compensation for permanent disability ***.”

The law firm alleges it is entitled to fair compensation based on quantum meruit for the legal services it rendered to secure claimant’s right to have his employer pay any future medical expenses he might incur. The law firm argues claimant now enjoys benefits which were not part of the two settlement offers made by the employer before the case was tried by the arbitrator. The law firm concedes that the permanent disability award made by the arbitrator does not exceed either of the written offers which claimant rejected. Yet, it contends the right claimant now enjoys to receive future medical benefits renders him liable for an award of fees based on quantum meruit irrespective of the contract between the parties. We disagree.

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Spinak, Levinson & Associates v. Industrial Commission
568 N.E.2d 41 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
568 N.E.2d 41, 209 Ill. App. 3d 120, 154 Ill. Dec. 41, 1990 Ill. App. LEXIS 1975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spinak-levinson-associates-v-industrial-commission-illappct-1990.