(1)A contingent fee shall not be applied to any
medical benefits that have been previously incurred and will be paid to the claimant
or directly to the medical care provider, in a permanent disability award, either by
admission or settlement. If medical benefits are the only contested issue, the fee
agreement shall provide for reasonable fees calculated on a per-hour basis or,
subject to approval by the director, may provide for a contingent fee not to exceed
the limitations imposed by this section. On unappealed contested cases, a
contingent fee exceeding twenty-five percent of the amount of contested benefits
is presumed to be unreasonable. At the request of either an employee or the
employee's attorney, the director shall determine what portion of the benefits
awarded were co
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(1) A contingent fee shall not be applied to any
medical benefits that have been previously incurred and will be paid to the claimant
or directly to the medical care provider, in a permanent disability award, either by
admission or settlement. If medical benefits are the only contested issue, the fee
agreement shall provide for reasonable fees calculated on a per-hour basis or,
subject to approval by the director, may provide for a contingent fee not to exceed
the limitations imposed by this section. On unappealed contested cases, a
contingent fee exceeding twenty-five percent of the amount of contested benefits
is presumed to be unreasonable. At the request of either an employee or the
employee's attorney, the director shall determine what portion of the benefits
awarded were contested, or the reasonableness of the fee charged by such
attorney, or both. At the request of the employer or its insurance carrier or the
attorney for either of them, the director shall determine the reasonableness of the
fee charged by the attorney for the insurance carrier. The director shall not
consider a request for determination of the reasonableness of fees if received later
than one hundred eighty days after the issuance of the final order, judgment, or
opinion disposing of the last material issue in the case and the expiration of any
right to review or appeal the final order, judgment, or opinion. In making this
determination, the director shall consider fees normally charged by attorneys for
cases requiring the same amount of time and skill and may decrease or increase the
fee payable to such attorney. If the director finds that a review by the industrial
claim appeals office or an appeal to the court of appeals or to the supreme court
was perfected or if the director finds that such attorney reasonably devoted an
extraordinary amount of time to the case, the director may award or approve a
contingent fee or other fee in a percentage or amount that exceeds twenty-five
percent of the amount of contested benefits. In determining the reasonableness of
fees charged by an attorney for an employer or employer's insurance carrier, the
director shall compare the fees of such attorney with the fees charged by the
claimant's attorney in the same case and shall not approve an amount substantially
greater than the reasonable amount charged by the said claimant's attorney or, if
the claimant did not prevail, the reasonable amount the said claimant's attorney
would have charged had the claimant prevailed, unless the director finds, based on
a showing by the attorney for the employer or carrier, that higher fees are
objectively justifiable. Legal costs not found reasonable shall not be allowed as an
expense in fixing premium rates by the commissioner of insurance.
(2) Any attorney who represents any party in a workers' compensation case
shall provide the party with a written fee agreement which sets forth, in full, the
attorney's specific fee arrangement, including the criteria upon which the attorney
bases his hourly or set fee and the circumstances in which any modifications or
adjustments to such fee will be made, and specifying whether the client will be
charged for the attorney's expenses or advances made by the attorney on behalf of
the party, including without limitation costs of copying, research, telephone calls,
postage, and any other expenses incident to the litigation which the attorney may
be ethically bound to undertake on behalf of the party pursuant to law or pursuant
to any court rule including the code of professional responsibility as adopted by the
supreme court of Colorado. Contingent fee agreements shall be in conformity with
all applicable provisions of the said code or of rules of the supreme court, and, in
addition, such agreements shall set forth the provisions of this section in easy to
understand language in at least ten-point bold-faced type. No such fee agreement
may be enforced against any party unless it complies with the requirements of this
section and is signed by both parties. Any attempt by an attorney who intentionally
does not comply with this section and who seeks to enforce a fee agreement which
does not comply with the requirements of this section shall be presumed to be a
violation of the code of professional responsibility as adopted by the supreme court
of Colorado.
(3) Repealed.