JAMES PILON, APPELLANT,
v.
OKEELANTA CORPORATION AND NATIONAL EMPLOYERS COMPANY, APPELLEES

Fla. 1st DCA | 1991-02-14
No. 90-3007
SHIVERS, C.J., and ERVIN and BOOTH, JJ., concur.
574 So. 2d 1200 Florida District Court of Appeal, First District (1991) Positive Treatment
Also reported at: 1991 WL 17936 · 1991 Fla. App. LEXIS 1238
Cited by 4 cases

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Synopsis

A workers' compensation claimant who won a bad faith attorney's fees award below appealed the JCC's decision to downwardly depart from the statutory fee schedule. The court held that the claimant, despite having limited assets, is the true party in interest and entitled to relief from costs based on insolvency, rejecting the argument that his attorney was the real party in interest.


Holding

The claimant is the true party in interest and entitled to relief from costs based on his insolvency. Although attorney fees will be paid by the employer/carrier rather than directly to the claimant, such payment constitutes a benefit to the claimant, and statutory policy entitles claimants to counsel in these circumstances. Allowing cost barriers to review fee decisions would chill claimants' willingness to challenge employer/carrier decisions.


Headnotes

[1] A claimant's insolvency status may be relied upon by their attorney to obtain a waiver of appellate costs, even if the attorney's fees are the primary financial interest…

[2] The payment of attorney's fees by an employer/carrier to a claimant's counsel is considered a benefit to the claimant, reflecting a public policy to ensure access to lega…

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Key Quotes

“Although any funds at issue in this appeal would not reach claimant Pilón directly, the payment of a fee to his counsel by the employer/carrier is, in effect, a benefit.”

Establishes that the claimant is the true party in interest despite not receiving fees directly

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Facts & Procedural History

James Pilón filed a workers' compensation claim for permanent total disability benefits. The employer/carrier initially contested the claim but later …

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Opinion of the Court
PER CURIAM.

[*1201] ORDER

PER CURIAM.

James Pilón filed a workers’ compensation claim, seeking permanent total disability benefits. Before the claim could be heard, the employee/carrier agreed to pay the claim. Michael Stauder, Pilon’s attorney, sought an award of attorney’s fees on grounds that the employer/carrier’s decision to at first contest the claim was made in bad faith. After a hearing the Judge of Compensation Claims (JCC) agreed that the employer/carrier had acted in bad faith and awarded a fee. He further found, however, reasons to downwardly depart from the fee schedule provided for in section 440.34(1), Florida Statutes (1989). Claimant timely took this appeal from that order.

Claimant sought to be relieved of the costs of this appeal, attaching an affidavit demonstrating that he had little or no assets except for equity in his home, furnishings, and personal vehicle. See Fla.Stat. § 440.25(4)(b). Both the employer/carrier and the Division of Workers’ Compensation (Division) opposed the request. They did not contend that claimant himself was not insolvent, but that the real party in interest in this appeal was Mr. Stauder. The JCC agreed with these arguments and denied the motion to be relieved of costs. Appellant timely moved this court for review pursuant to Rule 9.430, Florida Rules of Appellate Procedure. Having carefully considered the motion and the response of the Division, we grant the motion.

Claimant and his counsel entered into a fee agreement which basically reflects the statutory fee. schedule and which provides that the claimant shall reimburse counsel for any costs of proceedings not paid by the employer/carrier. We note initially that any attorney fee to be paid, whether by the employer/carrier or the claimant, must be determined reasonable by the JCC under the provisions of section 440.34(1). Thus, there does not appear to be any possibility in this ease that the claimant will be responsible to his counsel for attorney fees in excess of those to be paid by the employer/carrier. We also agree with the JCC that the retainer agreement cannot properly be construed to require the claimant to reimburse counsel for the costs of this appeal if appellant is not allowed to proceed without payment of costs.

We do not agree, however, with the JCC’s conclusion that the claimant is not the true party in interest in this cause and that Mr. Stauder is not entitled to rely on his client’s insolvent status to obtain a waiver of payment of costs. Although any funds at issue in this appeal would not reach claimant Pilón directly, the payment of a fee to his counsel by the employer/carrier is, in effect, a benefit. The legislative determination that a fee is payable by the employer/carrier in the circumstances enumerated in section 440.34(3)(a) through (d) reflects a public policy decision that claimants are entitled to and are in need of counsel under those conditions. As appellant argued below and in this court, a barrier to review a decision to award a fee below the statutory schedule could ultimately result in a net loss of attorneys willing to represent workers’ compensation claimants. This could ultimately result in a chilling effect on claimants’ ability to challenge employer/carrier decisions to deny claims for benefits and disrupt the equilibrium of the parties’ rights intended by the •legislature in enacting section 440.34.

Upon consideration of the foregoing, we quash the order of the JCC that denied the claimant’s petition to be relieved of costs and remand for further consistent proceedings.

MOTION GRANTED.

SHIVERS, C.J., and ERVIN and BOOTH, JJ., concur.


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Citator

Cited By

  • Murray v. Mariner Health and ACE USA, 994 So. 2d 1051 (Fla. 2008)
    …ination that a fee is payable by the employer/earrier in the circumstances enumerated in [this subsection] reflects a public policy decision that claimants are entitled to and are in need of counsel under those conditions.” Pilon v. Okeelanta Corp., 574 So. 2d 1200, 1201 (Fla. 1st DCA 1991); see Lockett v. Smith, 72 So. 2d 817, 819 (Fla.1954). Under the 1941 provision, a prevailing claimant’s compensation award was not reduced at all because the claimant hired counsel, and the employer and carrier were discour…
  • Castellanos v. Next Door Co., 192 So. 3d 431 (Fla. 2016)
    …ployer/carrier in the circumstances enumerated in [this subsection] reflects a public ■ policy decision that claimants are entitled to' and are in need of counsel under those conditions.’ Murray, 994 So. 2d at 1058 (quoting Pilon v. Okeelanta Corp., 574 So. 2d 1200, 1201 (Fla. 1st DCA 1991)). Indeed, the First District has stated that, especially in a “lengthy and expensive contest” with an E/C, a claimant proceeding “without the aid of competent counsel” would be as “helpless as a turtle on its back.” Davis v…

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