Zukowski v. Anne Arundel Cnty.

Court of Appeals of Maryland·Decided April 24, 2025·No. 14/24·Published

Opinion

Mark Zukowski, et al. v. Anne Arundel County, No. 14, September Term, 2024. Opinion by Eaves, J.

MD. CODE ANN., LABOR AND EMPLOYMENT § 9-610(a)(1) – STATUTORY OFFSET OF BENEFITS – SUBSEQUENT ENTITLEMENT TO ATTORNEY’S FEES The Supreme Court of Maryland held that, in calculating an award of attorney’s fees for representing an injured employee under Maryland’s Workers’ Compensation Act, an attorney is entitled to a percentage of the compensation awarded by the Maryland Workers’ Compensation Commission—after applying the statutory offset in § 9-610(a)(1) of the Labor and Employment Article of the Annotated Code of Maryland.

Circuit Court for Anne Arundel County Case No. C-02-CV-21-000697 Case No. C-02-CV-21-001642 Argued: October 1, 2024

IN THE SUPREME COURT

OF MARYLAND

No. 14

September Term, 2024

MARK ZUKOWSKI, ET AL.

v.

ANNE ARUNDEL COUNTY

Fader, C.J.,

Watts,

Booth,

Biran,

Gould,

Eaves,

Killough

JJ.

Opinion by Eaves, J.

Filed: April 24, 2025

Pursuant to the Maryland Uniform Electronic Legal Materials Act (§§ 10-1601 et seq. of the State Government Article) this document is authentic.

2025.04.24

10:48:20 -04'00'

Gregory Hilton, Clerk

I

INTRODUCTION

In this case, we are asked to decide how to determine attorney’s fees under the Maryland Workers’ Compensation Act (“the Act” or “the WCA”), which requires employers to provide compensation to employees who have sustained work-related injuries. The Act, codified as Title 9 of the Labor and Employment Article (“L&E”) (2016 Repl. Vol.), is a robust and complex statutory scheme. 1 Thus, it is no surprise that injured workers generally have better odds at securing benefits under the Act when they hire competent legal counsel. 2 And typically, excluding matters taken on a pro bono basis, lawyers expect to be compensated for their legal services.

The WCA is unique in that it places restrictions on an attorney’s ability to charge and collect fees. For instance, to collect a fee for a claim filed under the Act, an attorney is required to seek approval from the State Workers’ Compensation Commission (“the Commission”), 3 which has the authority to “hear and decide any question concerning legal

1 See Gleneagles, Inc. v. Hanks, 385 Md. 492, 506 (2005) (noting that the Act is “a complicated and detailed system[]”); Spevak v. Montgomery County, 251 Md. App. 674, 705 (2021) (“[The] legal arena of disability retirement benefits and workers’ compensation disability is exceedingly complex . . . .”).

2 See Bogdan Savych & David Neumark, Impact of Attorney Representation on Workers’ Compensation Payments, Workers Comp. Rsch. Inst. 18, 32 (2024) (discussing a seven-year survey across 31 states—including Maryland—and concluding that there is a “positive and statistically significant effect of attorney involvement on indemnity benefits[]”).

3 L&E § 9-731(a).

services performed in connection with a claim.” 4 Attorneys who represent injured workers before the Commission are paid from “an award of compensation only in the manner set by the Commission[,]” 5 and even then the Commission limits the amount that an attorney can collect. 6 As employers, governmental entities in Maryland (State and local alike) are subject to the Act’s provisions. 7 But separate and apart from WCA benefits, government employers sometimes offer their employees pension benefits. One such form of pension benefits is disability retirement benefits that are awarded because of an on-the-job injury, typically called “service-connected disability retirement benefits” or “accidental disability retirement benefits” (“ADR benefits”). 8 The Act, however, prevents an employee from receiving duplicative ADR benefits and benefits under the Act. In other words, it prevents an employee from being compensated twice for the same injury. The Act does so through its offset provision, which states, in pertinent part, that if a covered employee receives other

4 Id. § 9-731(c)(1).

5 Id. § 9-731(a)(3) (emphasis added).

6 See generally Code of Maryland Administrative Regulations (“COMAR”)

14.09.04.03(C); see also L&E § 9-701 (instructing the Commission to, among other things, “adopt reasonable and proper regulations to govern the procedures of the Commission[]”).

7 L&E § 9-201(2) (noting that the Act applies to “each governmental unit . . . that has at least 1 covered employee[]”); id. § 9-101(f) (defining covered employee to mean “an individual listed in Subtitle 2 of this title for whom a person, a governmental unit, or a quasi-public corporation is required by law to provide coverage under this title[]”).

8 See 1 Clifford B. Sobin, MD Workers’ Compensation § 16:1 (2024).

benefits, such as ADR benefits, then the “payment of th[os]e [other] benefit[s] by the employer satisfies . . . payment of similar benefits under this title.” 9 The parties in this case debate whether the use of different words—“compensation”

in L&E § 9-731 and “benefits” in L&E § 9-610—has any significance as it pertains to an award of attorney’s fees. Petitioners, Mark Zukowski and Joshua Ruggiero, two former corporals in the Anne Arundel County Police Department, were injured in the line of duty. Both were awarded ADR and WCA benefits. In both cases, the amount of ADR benefits exceeded the amount of WCA benefits, offsetting all WCA benefits except those paid during relatively brief periods before Anne Arundel County (“the County”) awarded ADR benefits. Petitioners argue that “compensation” is broader than “benefit” and encompasses amounts awarded but not paid, such that an attorney’s fee should be calculated based on the overall WCA “compensation” awarded to a claimant before calculating whether the claimant receives any actual WCA “benefits”—money paid after any offset under § 9-610 is applied. The County, on the other hand, contends that, at least here, the two terms are interchangeable, such that an attorney’s fees are calculated only if there is an award of compensation/benefits after L&E § 9-610’s offset provision has been applied, and only on the amount of the post-offset benefit.

We granted a writ of certiorari in this case 10 to resolve that dispute and answer the following question: Is an attorney’s fee under L&E § 9-731 calculated before or after

9 L&E § 9-610(a)(1) (emphasis added).

10 Zukowski v. Anne Arundel County, 487 Md. 262 (2024).

applying the statutory offset under L&E § 9-610(a)(1)? 11 Because we agree with the Commission that an attorney’s fee is calculated after applying the offset, we affirm the judgment of the Appellate Court.

II

BACKGROUND

There is little contested in this case. Neither side disputes the occurrence or severity of Petitioners’ on-the-job injuries, nor Petitioners’ entitlement to benefits under the Act or the scope of those benefits. In addition, no one disputes that the County is entitled to a statutory offset under L&E § 9-610. Rather, this case concerns only the timing of when the Act’s offset provision applies and how we calculate an attorney’s fees after a claimant successfully obtains an award from the Commission. Thus, we provide an overview of the Act’s pertinent provisions, as well as the applicable regulations, before recounting the factual background and procedural history. A. The Statutory Scheme 1. The Act’s purpose and the Commission’s authority The overarching purpose of the Act is “to protect workers and their families from hardships inflicted by work-related injuries[.]” Gang v. Montgomery County, 464 Md. 270, 278 (2019) (quoting Roberts v. Montgomery County, 436 Md. 591, 603 (2014)). It was enacted to, among other things, “provide workers with compensation for loss of earning

11 The question for which we originally granted certiorari, as framed in the petition, was: “Whether the General Assembly, when it adopted Md. Lab. & Empl. Art. § 9-610, intended to offset compensation or benefit to be paid directly to claimants.” We have exercised our prerogative to rephrase the question presented. See United Parcel Serv. v. Strothers, 482 Md. 198, 205 (2022).

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