Willingham v. Kral Music, Inc.

505 A.2d 34, 1985 Del. Super. LEXIS 1459
CourtSuperior Court of Delaware
DecidedAugust 28, 1985
StatusPublished
Cited by7 cases

This text of 505 A.2d 34 (Willingham v. Kral Music, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willingham v. Kral Music, Inc., 505 A.2d 34, 1985 Del. Super. LEXIS 1459 (Del. Ct. App. 1985).

Opinion

O’HARA, Judge.

This is an appeal from a determination of the Industrial Accident Board (“Board”) dated July 17,1984, and a subsequent clarification dated July 25, 1984, which denied attorney’s fees pursuant to 19 Del.C. *35 § 2127(a). The Court has determined that the Board’s decision must be reversed.

Appellant Donna Willingham filed a Petition to Determine Compensation Due to Dependents of Deceased Employee, pursuant to 19 Del. C. § 2330(a)(3) and § 2331, with the Board on January 16, 1984. On that same day, Mrs. Willingham joined with appellant Charles Cecil Printz, Co-Administrator of the Estate of her deceased husband, Robert Willingham, in filing two other petitions, a Petition to Determine Additional Compensation Due to Injured Employee (seeking total disability benefits under 19 Del.C. § 2324, medical expenses under 19 DeLC. § 2322, and permanent partial disability benefits under 19 Del. C. § 2326(a)), and a Petition to Determine Disfigurement.

As the circumstances surrounding Mr. Willingham’s injuries, untimely death on June 3, 1983, and the successful resolution of a third-party action are not in dispute in this appeal concerning the denial of attorney’s fees, it will suffice to point out that Mr. Willingham, while acting in the course of his employer’s (Krai Music, Inc.) (“appel-lee”) business, was injured by a third party in an automobile accident on April 14,1980. In late January, 1982, Mr. and Mrs. Will-ingham achieved a “structured settlement” of their third-party action against the employer of the other driver. As a result of this settlement, INA, the workmen’s compensation carrier for appellee, ceased payment of medical bills and total disability benefits to Mr. Willingham on February 15, 1982.

The Board determined that INA owed appellants $61,775.42. This sum consisted of survivor’s benefits of $7,945.53, funeral expenses of $3,236.98, permanent disability benefits for the left leg of $10,023.30, total disability benefits of $9,099.84, disfigurement compensation of $9,426.90, and medical expenses of $22,042.87.

However, the Board also decided that INA was entitled to a credit of $144,096.98. This credit consisted of annuity payments of $35,000.00 to Mrs. Willingham prior to the Board’s decision, the $92,949.18 net recovery from the third-party settlement, and $16,147.80 in attorney’s fees paid by the Willinghams to defend the third-party settlement.

The Board also awarded attorney’s fees, pursuant to 19 DeLC. § 2127(a), to appellants in the amount of $2,250.00 or 30% of the award, whichever was smaller. This amount, totalling $9,150.00, was made to cover representation in connection with the issues of total disability, permanency, medical expenses, and survivor’s benefits. The standard attorney’s fee of $150.00 was granted for the issue of disfigurement.

In response to the appellee’s request for a clarification of the attorney’s fee award, the Board subsequently ruled that if the credit due INA exceeded the amount awarded appellants, Mrs. Willingham would not receive a benefit and no attorney’s fees would be owing by the carrier (INA). The effect of this ruling was to deny attorney’s fees to appellants, as the Board found that INA’s credit of $144,-096.98 exceeded the amount of $61,775.42 owed appellants. The Board’s interpretation of 19 DeLC. § 2127(a) is the focus of this appeal.

Initially, it must be noted that this Court’s function on appeal from the Board is to determine whether the Board committed an error of law or made findings of fact unsupported by substantial evidence. Taimo v. New Castle County, Del.Super., 444 A.2d 298, aff’d, 454 A.2d 758 (1982). In the instant case, which involves questions of statutory interpretation, the inquiry is directed to whether the Board committed an error of law in its construction of § 2127(a).

Under 19 DeLC. § 2127, the statutory entitlement to attorney’s fees in workmen’s compensation cases is based upon a percentage of the award. Section 2127(a) states:

[a] reasonable attorney’s fee in an amount not to exceed 30% of the award or $2,250, whichever is smaller, shall be allowed by the Board to any employee *36 awarded compensation under this Chapter and Chapter 23 of this title and taxed as costs against a party.

Appellants’ initial contention is that the Board committed an error of law in its interpretation of § 2127(a) as requiring that an award result in a direct financial benefit to a claimant before attorney’s fees would be granted. Additionally, appellants contend that even if this Court is in agreement with the Board as to the validity of the “benefit test,” Mrs. Willingham should nonetheless prevail since the result of the hearing before the Board was to establish her right to compensation in the future should INA’s credit be extinguished, and to immediately reduce INA’s credit by 43%.

The purpose of § 2127(a) was to ensure that a successful claimant would be able to recover reasonable attorney’s fees from the other party, considering the amount of services rendered as well as the accomplishments. Huff v. Industrial Acc. Bd., Del.Super., 430 A.2d 796 (1981); Ham v. Chrysler Corporation, Del.Supr., 231 A.2d 258 (1967); Ellison v. City of Wilmington, Del.Super., 301 A.2d 303 (1972).

This Court has previously held that the spirit of § 2127(a) “envisions a relationship between fees allowed the attorney and benefits conferred upon the client.” General Motors Corporation v. Morgan, Del.Super., 286 A.2d 759 (1971). The fallacy in appellee’s argument lies in its overly restrictive view of the word “benefit.” “Benefit” has been described as denoting any form of advantage or profit, including non-monetary benefits reasonably accruing to a claimant who has sought legal advice on his rights under statute. RESTATEMENT OF RESTITUTION § 1(b) (1937); East Coast Tire Co. v. Denmark, Fla.Dist.Ct. App., 381 So.2d 336, 339 (1980). Therefore, immediate pecuniary gain is not a prerequisite to finding that one received a benefit.

In Berryman v. John F. Casey Company, Del.Super., 251 A.2d 565 (1969), this expansive definition of benefit was supported when the Court ruled that a change in a claimant’s status from temporary total disability to permanent total disability as the result of a Board hearing, even without present financial gain, can be a sufficient benefit to justify awarding attorney’s fees. Berryman v. John F. Casey Company, supra. Here, Mrs.

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505 A.2d 34, 1985 Del. Super. LEXIS 1459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willingham-v-kral-music-inc-delsuperct-1985.