BARCO VENDING COMPANY AND AMERICAN POLICYHOLDERS, APPELLANTS,
v.
GUILLERMO VILLALONGA, APPELLEE

Fla. 1st DCA | 1992-11-10
No. 91-3994
SMITH and WIGGINTON, JJ., concur.
608 So. 2d 128 Florida District Court of Appeal, First District (1992) Positive Treatment
Cited by 6 cases

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Synopsis

In this workers' compensation fee dispute, the Florida District Court of Appeal reversed the judge of compensation claims' award of attorney's fees because the judge failed to first determine the benefits obtained by the attorney and improperly relied solely on hourly rates rather than applying the statutory fee schedule. The court held that the statutory formula based on benefits secured is the primary method for calculating fees, with hourly rates as only one factor for potential deviation in exceptional circumstances.


Holding

The court held that the judge erred by failing to determine the amount of benefits actually obtained by the attorney and by basing the fee award solely on hourly rates. The statutory fee schedule requires that benefits secured be determined first, and only then may hourly rates be considered as one factor in determining whether to deviate from the statutory guideline fee in exceptional circumstances.


Headnotes

[1] A judge of compensation claims must determine the amount of benefits secured by a claimant's attorney before awarding attorney's fees.

[2] The customary hourly rate is only one factor to be considered when determining attorney's fees, not the sole basis for the award.

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Key Quotes

“shall be equal to 25 percent of the first $5,000 of the amount of the benefits secured, 20 percent of the next $5,000 of the amount of the benefits secured, and 15 percent of the remaining amount of the benefits secured”

Establishes the statutory fee formula that must be applied based on benefits secured, not hourly rates

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Facts & Procedural History

Claimant's attorney sought attorney's fees in a workers' compensation case. The attorney testified he secured $221,172.36 in benefits and claimed an h…

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Opinion of the Court
WOLF, Judge.

WOLF, Judge.

Barco Vending Company and American Policyholders, the employer and carrier (E/C), appeal from a final order of the judge of compensation claims (JCC) which granted fees to claimant’s attorney. The E/C asserts that the JCC erred in failing to determine the amount of benefits that the attorney obtained for the claimant and in basing the award of fees solely on an hourly rate. We agree and reverse.

The E/C and the claimant agree that claimant’s attorney is entitled to an award of attorney’s fees. At the hearing to determine the amount of fees, claimant’s attorney testified that he secured $221,172.36 in benefits for his client. He also stated that he was entitled to an hourly fee of $350. Appellant contends that claimant’s attorney obtained benefits of only $41,596.90 and that a guideline fee of $6,998.82 is appropriate. In the alternative, appellants contended that an hourly fee of $100 to $125 was appropriate, and calculated on that basis, the fee should have been between $13,900 and $17,375.

At the conclusion of the hearing, the JCC issued an order which, in pertinent part, found as follows:

[A]s a starting point under F.S. 440.34, I have considered Mr. Harum’s opinion that benefits obtained were $221,172.36, and the employer/carrier’s opinion that benefits obtained were $41,596.90. While I acknowledge both positions as to benefits obtained, under the circumstances I gave more weight to the time spent by claimant’s counsel in behalf of the claimant.

The order concluded that

I again state that in my estimation the hourly rate to be charged is the most important factor in my making a determination as to attorney’s fees, and I feel that Mr. Harum is entitled to a fee of slightly less than $250.00 per hour based on the 139 hours spent in behalf of Mr. Villalonga. That fee amount is $34,-000.00.

The order never made a finding concerning the amount of benefits which were actually obtained by claimant’s attorney.

Section 440.34(1), Florida Statutes, in pertinent part, states that any fee, except as provided for in that subsection

shall be equal to 25 percent of the first $5,000 of the amount of the benefits secured, 20 percent of the next $5,000 of the amount of the benefits secured, and 15 percent of the remaining amount of the benefits secured.

Benefits secured are those obtained as a result of the claimant’s attorney’s legal services rendered in connection with the claim for benefits. After determining the benefits obtained, the JCC shall then consider all the statutory factors in determining whether to increase or decrease the guideline fee. The customary hourly rate is only one factor to be considered.

This court has stated that “[T]he statutory fee schedule embodies a legislative intent to standardize the method of assessing fees; departures from its percentage formula should be made only in exceptional circumstances.” Tri-State Motor Transit v. Judy, 566 So. 2d 537 (Fla. 1st DCA1990). In Marsh v. Benedetto, 566 So. 2d 324 (Fla. 1st DCA1990), we recognized that “while attorneys’ fees are not expected to be determined with precise exactitude, it is the function of the statutory formula to achieve this purpose in all cases except those in which consideration of the other factors demonstrates that the formula amount is manifestly unfair.” Id. at 326.

In order to comply with the statutory mandate, the JCC must make a determination of the benefits which have been obtained as a result of the efforts of the attorney. The JCC may then only utilize the customary hourly rate as one of the factors in the consideration of whether to deviate from the statutory guidelines fee based on benefits obtained. The JCC failed to follow this procedure.

The order of the JCC is, therefore, reversed and the case is remanded for further proceedings to determine the amount of benefits obtained as a result of the efforts of the attorney, and to apply the factors enumerated in the statute to determine whether a deviation from the statutory fee schedule is justified.

SMITH and WIGGINTON, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • Alderman v. Fla. Plastering & Associated Indus. Ins. Co., 805 So. 2d 1097 (Fla. 1st DCA 2002)
    …award solely on the basis of its per hour rate would be to improperly ignore the new sliding-scale provisions in the statute.” Id. at 454; see also Trans World Tire Co. v. Hagness, 651 So. 2d 124 (Fla. 1st DCA 1995); Barco Vending Co. v. Villalonga, 608 So. 2d 128 (Fla. 1st DCA 1992). A customary fee based on an hourly rate is likely to be more significant in a case in which the value of the attorney’s services greatly exceeds the financial benefit obtained on behalf of the client. For example, the work that…
  • The City OF Daytona Beach v. Ashley, 616 So. 2d 608 (Fla. 1st DCA 1993)
    …After determining the benefits obtained, the judge of compensation claims must then consider all the statutory factors in determining whether to increase or decrease the guideline fee. Sec. 440.34(1), Fla.Stat. See Barco Vending Co. v. Villalonga, 608 So. 2d 128 (Fla. 1st DCA 1992). The judge of compensation claims issued an order which, in pertinent part, provided: After reviewing the Affidavits submitted, hearing argument of counsel, reviewing the file and being otherwise fully advised in the premises,…
  • Fla. Mining & Materials v. Holley, 677 So. 2d 997 (Fla. 1st DCA 1996)
    …unt of the attorney’s fee is facially insufficient. See Metric Constructors, Inc. v. Boyles, 633 So. 2d 1167 (Fla. 1st DCA 1994). We remand for additional findings as required by section 440.34, Florida Statutes. See Barco Vending Co. v. Villalonga, 608 So. 2d 128 (Fla. 1st DCA 1992); Dobbs v. Suncoast Acoustics, 590 So. 2d 7 (Fla. 1st DCA 1991). KAHN, DAVIS and BENTON, JJ., concur.…

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