St. John v. Gering Public Schools

302 Neb. 269
CourtNebraska Supreme Court
DecidedFebruary 15, 2019
DocketS-17-898
StatusPublished

This text of 302 Neb. 269 (St. John v. Gering Public Schools) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. John v. Gering Public Schools, 302 Neb. 269 (Neb. 2019).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 05/10/2019 09:08 AM CDT

- 269 - Nebraska Supreme Court A dvance Sheets 302 Nebraska R eports ST. JOHN v. GERING PUBLIC SCHOOLS Cite as 302 Neb. 269

Edward St. John, appellee, James L. Zimmerman, appellant, and Brenda L. Bartels and Monte L. Neilan, appellees, v. Gering Public Schools and NASB Workers Compensation Pool, its workers’ compensation carrier , appellees. ___ N.W.2d ___

Filed February 15, 2019. No. S-17-898.

1. Workers’ Compensation: Appeal and Error. Pursuant to Neb. Rev. Stat. § 48-185 (Cum. Supp. 2018), an appellate court may modify, reverse, or set aside a Workers’ Compensation Court decision only when (1) the compensation court acted without or in excess of its powers; (2) the judgment, order, or award was procured by fraud; (3) there is not sufficient competent evidence in the record to warrant the making of the order, judgment, or award; or (4) the findings of fact by the compensa- tion court do not support the order or award. 2. ____: ____. Determinations by a trial judge of the Workers’ Compensation Court will not be disturbed on appeal unless they are contrary to law or depend on findings of fact which are clearly wrong in light of the evidence. 3. Contracts: Attorney Fees. While a lawyer with a valid fee agreement is entitled to recover what a fee agreement allows to the extent that amount is reasonable, a lawyer is not entitled to recover more than a fee agree- ment allows. 4. Contracts: Intent. A court should avoid interpreting contract provisions in a manner that leads to unreasonable or absurd results that are obvi- ously inconsistent with the parties’ intent.

Petition for further review from the Court of Appeals, Moore, Chief Judge, and Pirtle and A rterburn, Judges, on appeal thereto from the Workers’ Compensation Court: John R. - 270 - Nebraska Supreme Court A dvance Sheets 302 Nebraska R eports ST. JOHN v. GERING PUBLIC SCHOOLS Cite as 302 Neb. 269

Hoffert, Judge. Judgment of Court of Appeals reversed, and cause remanded with directions.

James L. Zimmerman, of Zimmerman Law Firm, P.C., L.L.O., pro se.

Monte L. Neilan, pro se.

Brenda L. Bartels, of Hanes & Bartels, L.L.C., pro se.

Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke, Papik, and Freudenberg, JJ.

Papik, J. During the course of his workers’ compensation action against Gering Public Schools, Edward St. John switched lawyers. St. John eventually settled his claim, but a dispute remained as to how much St. John owed his lawyers. The Workers’ Compensation Court held a hearing regarding the attorney fee issue. After the hearing, the compensation court entered an order directing that the lawyers that St. John dis- charged, Brenda L. Bartels and Monte L. Neilan, receive $82,500 and that the lawyer who represented St. John through the settlement, James L. Zimmerman, receive $82,500. The compensation court evaluated the attorneys’ representation of St. John and found that one set of attorneys did not contribute more to the end result than the other. The compensation court did not analyze the attorneys’ entitlement to fees under their written fee agreements with St. John. Zimmerman appealed, and the Nebraska Court of Appeals affirmed. We granted Zimmerman’s petition for further review. We find that because Bartels and Neilan were entitled to less than the amount awarded by the Workers’ Compensation Court under the terms of their fee agreement with St. John, the order splitting the fee evenly was erroneous. Accordingly, we reverse, and remand with directions. - 271 - Nebraska Supreme Court A dvance Sheets 302 Nebraska R eports ST. JOHN v. GERING PUBLIC SCHOOLS Cite as 302 Neb. 269

I. BACKGROUND 1. St. John’s Workers’ Compensation Action After suffering an injury in the course of his employment, St. John retained Zimmerman in March 2013 by signing a con- tingent fee agreement. Under the terms of that agreement, St. John agreed to pay to Zimmerman one-third of any amounts collected after suit. St. John later moved to Colorado. Apparently desiring a Colorado lawyer, St. John discharged Zimmerman and retained Bartels, a Nebraska-licensed attorney based in Colorado. Bartels, in turn, hired Neilan to assist her with St. John’s claim. In January 2014, St. John executed a single contingent fee agreement with the respective law firms of Bartels and Neilan. Like his agreement with Zimmerman, St. John agreed to pay Bartels and Neilan one-third of any amounts recovered from Gering Public Schools. Paragraph 8 of the agreement, however, also included the following language: Should CLIENT choose to discharge ATTORNEYS prior to final settlement or judgment, CLIENT agrees to pay ATTORNEYS a fee equal to [one-third] of the “gross amount recovered”, OR on an hourly basis of $175.00 per hour for his/her time and, in addition, $75 per hour for paralegal time from the date of this Agreement to the date of discharge, or the above percentage of ATTORNEYS’ fee from any settlement offer made prior to discharge, whichever is greater. (Emphasis in original.) Bartels and Neilan thereafter filed a workers’ compensa- tion claim against Gering Public Schools on St. John’s behalf. They continued to represent him until later in 2014, when St. John became dissatisfied with their representation and dis- charged them and again retained Zimmerman. At that time, St. John re-signed his original contingent fee agreement with Zimmerman. In December 2014, Zimmerman entered his - 272 - Nebraska Supreme Court A dvance Sheets 302 Nebraska R eports ST. JOHN v. GERING PUBLIC SCHOOLS Cite as 302 Neb. 269

appearance and Bartels and Neilan filed a notice of attorney’s lien in the workers’ compensation case. Over 2 years later, the parties to the workers’ compensation claim, with St. John now represented by Zimmerman, filed an application for approval of a final lump-sum settlement. The parties asked that the compensation court approve a settlement whereby St. John’s claim would be settled for $500,000, with $335,000 being paid to St. John and the remaining $165,000 being held in trust for subsequent distribution to his attor- neys. The application provided that Bartels and Neilan and Zimmerman all agreed that the $165,000 satisfied any attorney liens in the case. In an order, the compensation court approved the lump-sum settlement. The court noted the existence of the dispute involv- ing claimed attorney liens and ordered that any of the attor- neys claiming entitlement to attorney fees could petition the court for a hearing to address distribution of the funds placed in trust. Zimmerman filed a motion, requesting that the court determine the amount necessary to satisfy the attorney lien of Bartels and Neilan.

2. Workers’ Compensation Court’s R esolution of Fee Dispute The compensation court convened a hearing on the dispute regarding the fees due to attorneys. The court heard testimony and received various exhibits. St. John and his ex-wife gener- ally testified that they were dissatisfied with the services of Bartels and Neilan. The exhibits included the fee agreement between St. John and Zimmerman and the fee agreement between St. John and Bartels and Neilan, along with documen- tary evidence of legal services provided. The compensation court entered an order dividing the $165,000 equally between Zimmerman, on the one hand, and Bartels and Neilan on the other. The compensation court explained that the factors for determining the reasonableness of attorney fees set forth in Neb. Ct. R. of Prof. Cond. § 3-501.5 - 273 - Nebraska Supreme Court A dvance Sheets 302 Nebraska R eports ST. JOHN v. GERING PUBLIC SCHOOLS Cite as 302 Neb. 269

guided its analysis.

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Bluebook (online)
302 Neb. 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-john-v-gering-public-schools-neb-2019.