Valdes v. GALCO CONST.

922 So. 2d 252, 2006 Fla. App. LEXIS 826, 2006 WL 176731
CourtDistrict Court of Appeal of Florida
DecidedJanuary 26, 2006
Docket1D04-4193
StatusPublished
Cited by3 cases

This text of 922 So. 2d 252 (Valdes v. GALCO CONST.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valdes v. GALCO CONST., 922 So. 2d 252, 2006 Fla. App. LEXIS 826, 2006 WL 176731 (Fla. Ct. App. 2006).

Opinion

922 So.2d 252 (2006)

Jose VALDES, Appellant,
v.
GALCO CONSTRUCTION and GAB, Appellees.

No. 1D04-4193.

District Court of Appeal of Florida, First District.

January 26, 2006.
Rehearing Denied March 3, 2006.

*253 Mark L. Zientz, Esquire and Andrea Cox, Esquire of the Law Offices of Mark L. Zientz, P.A., Miami, for Appellant.

Kimberly A. Hill, Esquire of Conroy, Simberg, Ganon, Krevans and Abel, P.A., Hollywood, for Appellees.

BENTON, J.

Jose Valdes appeals an amended order awarding an attorney's fee of $10,000, instead of a statutory guidelines fee based on the amount of benefits secured. The judge of compensation claims found benefits had been secured after Mr. Valdes's counsel filed a petition for benefits; and that he took other steps to preserve benefits, in defending modification proceedings that Galco Construction and its insurance carrier (GAB) instituted under section 440.28, Florida Statutes (1999). Mr. Valdes contends the award is inadequate. We vacate the amended order on attorney's fees, and remand for reconsideration under section 440.34, Florida Statutes (1983).

*254 I.

"The starting point in determining a fee award under section 440.34 is the amount of benefits the attorney obtained for the claimant." Trans World Tire Co. v. Hagness, 651 So.2d 124, 125 (Fla. 1st DCA 1995). "In awarding a reasonable attorney's fee, . . . only those benefits to the claimant that the attorney is responsible for securing" should be considered. § 440.34(2), Fla. Stat. (1983). The judge of compensation claims determined that claimant's counsel secured $56,009.73 for Mr. Valdes in past permanent total disability indemnity benefits, $200,737.75 in future permanent total disability indemnity benefits, and $111,463.71 in future attendant care benefits. Section 440.34(1), Florida Statutes (1983), provides that

any attorney's fee approved . . . shall be equal to 25 percent of the first $5,000 of the amount of the benefits secured, 20 percent of the next $5,000 of the amount of the benefits secured, and 15 percent of the remaining amount of the benefits secured.

The judge of compensation claims did not reduce the awards of future benefits to present value or actually calculate a fee based on the benefits he found had been secured in the present case. But, based on statutory — and other — factors, the judge of compensation claims departed downward from the (uncalculated) "presumptively fair fee." See Marsh v. Benedetto, 566 So.2d 324, 325 (Fla. 1st DCA 1990) (explaining that while "[s]ection 440.34 sets [a] percentage formula amount as the customary or presumptively fair fee for legal services rendered pursuant to a contingency fee arrangement[,] it further specifies that the judge shall consider the several factors in subparagraphs [ (1) ](a) through (h) in each case and `may increase or decrease the attorney's fee if, in his judgment, the circumstances of the particular case warrant such action . . . .'").

II.

Mr. Valdes was injured in an industrial accident while working for Galco Construction on January 15, 1985. Voluntarily accepted soon thereafter as permanently, totally disabled, he originally received indemnity and medical benefits; and was subsequently awarded benefits for attendant care by order entered on the parties' stipulation.

More than ten years after it had begun paying him indemnity benefits, GAB initiated video surveillance of Mr. Valdes, took his deposition, and furnished the results of both to the Florida Division of Insurance Fraud. Eventually, in December of 1999, Mr. Valdes was arrested and charged with insurance fraud in connection with his workers' compensation claim for the 1985 injury.

GAB suspended all indemnity payments on the day of his arrest, and filed a petition for modification under section 440.28, seeking to terminate his attendant care benefits. Later, the State Attorney for the Eleventh Judicial Circuit filed an information charging him with a criminal violation of section 440.105, Florida Statutes (1999). Mr. Valdes retained Mark Zientz, Esq., to represent him in the workers' compensation proceedings, and Stuart Markus, Esq. to represent him in the criminal proceedings.

In the criminal case, Mr. Valdes refused to admit guilt or accept any plea agreement that would render him ineligible for workers' compensation benefits. See § 440.09(4), Fla. Stat. (1999) ("An employee shall not be entitled to compensation or benefits under this chapter if any . . . court, or jury convened in this state determines that the employee has knowingly or intentionally engaged in any of the acts *255 described in s. 440.105. . . ."). Shortly before the criminal case was to have gone to trial in June of 2002-but not before Mr. Valdes had become indebted to Mr. Markus for attorney's fees in the amount of $75,000-the State Attorney nolle prossed.

For his part, Mr. Zientz filed a petition for benefits seeking the indemnity benefits GAB had stopped paying, and actively opposed the petition for modification filed to cut off attendant care benefits. As it happened, however, neither petition needed to be litigated to the point of a final hearing because, after the criminal proceedings terminated, Galco and GAB abandoned their petition for modification; resumed paying indemnity benefits prospectively; and paid all back indemnity benefits, together with penalties and interest.

III.

Galco and GAB conceded their liability for a reasonable fee for the work Mr. Zientz had performed on behalf of Mr. Valdes in the workers' compensation proceedings. The parties could not agree on the amount of such a fee, however, and the matter came on for hearing on December 2, 2003. After some delay, see Valdes v. Galco Constr., 883 So.2d 359 (Fla. 1st DCA 2004), the judge of compensation claims entered on August 31, 2004, the amended order on attorney's fees now on review, which determined that Galco and GAB were not obligated to Mr. Markus (or to Mr. Valdes on account of Mr. Markus's work) for any fees whatsoever; and that, while Mr. Zientz's work did not merit an award of the statutory guidelines fee, Galco and GAB were obligated for a $10,000 fee on account of Mr. Zientz's work; but that they did not owe "prejudgment interest" on the fee.

A.

In declining to award fees based on Mr. Markus's work in the criminal case, the judge of compensation claims was eminently correct. Mr. Markus did not file a petition for benefits in the workers' compensation proceedings, did not participate in the case (prior to the fee hearing), and did not actually secure any workers' compensation benefits for Mr. Valdes. See § 440.34(2), Fla. Stat. (1983) ("In awarding a reasonable attorney's fee, the deputy commissioner shall consider only those benefits to the claimant that the attorney is responsible for securing."). Mr. Markus's sole responsibility was the criminal matter. He was not of record in the workers' compensation case, and was not employed by or otherwise formally associated with Mr. Zientz or his law firm.

B.

The judge of compensation claims also correctly denied prejudgment interest. Where the amount of the fee is disputed, an order setting the amount is a condition precedent to lawful payment. Not unlike predecessor statutes dating back to well before 1985, section 440.34(1), Florida Statutes (2005), forbids, insofar as pertinent here, payment of any "fee . . .

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Bluebook (online)
922 So. 2d 252, 2006 Fla. App. LEXIS 826, 2006 WL 176731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/valdes-v-galco-const-fladistctapp-2006.