2003
WORKERS’ COMPENSATION ATTORNEY FEE REFORMS UPHELD BY APPELLATE COURT
February 20,
2006
The First District Court
of Appeals (“First DCA”) issued an opinion on February 13 in Woods
v. Florida Rock Industries, which upheld the attorney
fee reforms of the 2003 workers’ compensation law. AIF General Counsel,
Mary Anne Stiles, led the Coalition of Business and Industry for several
years to gain the passage of much needed reforms which have given Florida
employers an average workers’ compensation rate decrease of over 25%
since its implementation.
One of the most heavily fought reforms by the trial bar and one of the
primary factors for the success of this legislation was the elimination
of hourly rate attorney fees in most workers’ compensation cases. Under
the new law, only a percentage of benefits secured on behalf of the
injured worker can be awarded as an attorney fee. One exception is a
one time hourly fee for medical only cases of up to $1500.
The First DCA upheld the validity of the new law and ruled that for
accidents after October 1, 2003, an attorney fee cannot be awarded based
upon just the claimant’s attorney’s hours. The Court stated, “All approved
fees must equal a statutorily enumerated percentage
based on the value of the benefits secured on behalf of the Claimant.
Therefore, a JCC may approve a fee as “reasonable” only when it equals
a statutorily established percentage of the value of benefits secured
on behalf of the Claimant.” (emphasis added).
The Court stated there was no question the changes to the statute were
intended by the legislature to remove a judge’s ability to grant attorney’s
fees in excess of the statutory percentage in most cases. In so stating,
the Court noted attorney fees are “no longer based on services rendered,
but instead [are] based on the value of benefits secured on behalf of
the claimant.”
The ruling is a true victory for Florida’s employers. Since the law’s
passage, the trial bar has filed several appeals attempting to overturn
the attorney fee provision or have the reforms interpreted in a manner
which would still allow them to get fees based upon their hours. Those
other cases still working their way through the appellate process and
seek to attack this important law for Florida business. At present,
there are at least five other cases challenging the attorney fee reforms
on various theories. To date, AIF has appeared as Amicus Curiae in three
of those cases urging the result reached in this case. Rayford Taylor,
partner at Stiles Taylor Grace, AIF’s general counsel firm, represents
AIF in all these cases.
AIF is proud to stand with the business leaders of this state to continue
to protect the workers’ compensation system which is a vital link to
the continued economic growth and development of this state.
Read
the Court's Opinion in its Entirety
