LOCKETT
v.
SMITH ET AL.
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In this case of first impression, the Florida Supreme Court held that a 20% delinquency payment under Section 440.20(6) of the Workmen's Compensation Act constitutes "compensation" eligible for attorney's fees under Section 440.34(1), rejecting the lower tribunals' characterization of it as a mere penalty ineligible for counsel fees.
The court held that the 20% delinquency payment under Section 440.20(6) is "compensation" within the meaning of Section 440.34(1), and therefore the claimant is entitled to recover reasonable attorney's fees for services rendered in obtaining such payment. Although the payment may be characterized as a penalty in some contexts, it must be included in the term "compensation" for purposes of determining attorney's fee eligibility.
“While an amount payable may be a penalty for some purposes, it must be included in the term "compensation" for others.”
Establishes the functional approach to interpreting whether payments constitute "compensation" for attorney's fee purposes, rejecting formalistic categorization.
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Join FLexlaw to unlock all legal intelligenceClaimant Lockett obtained a workmen's compensation award but the employer delayed payment beyond fourteen days. The Deputy Commissioner awarded the cl…
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HOBSON, Justice.
The claim with which we are concerned in this workmen’s compensation case was for an additional amount of twenty percent of delinquent compensation payments due the claimant as the result of an award previously entered by the Deputy Commissioner. After hearing the evidence with respect to this claim, the Deputy Commissioner awarded the claimant twenty percent of the amount of the previous award then delinquent, pursuant to Section 440.20 (6), Florida Statutes, F.S.A., but refused to' grant an attorney’s fee under Section 440.34, Florida Statutes, F.S.A., for services .rendered by claimant’s attorney at the hearing above mentioned. The full Commission ‘affirmed the Deputy’s order and claimant now petitions for certiorari to review , the' order of the Commission.
The provisions of the Workmen’s Compensation Act now before us are the following :
“(6) If any compensation, payable •under the terms of an award, is not paid within fourteen days after it becomes due, there shall be added to such unpaid compensation an amount equal to twenty per cent thereof, which shall be paid at the same time as, but in addition to such compensation, unless review of the compensation order making such award is had as provided in § 440.27.”
“440.34 Attorney’s fees; costs; penalty for violations “(1) If the employer or carrier shall file notice of controversy as provided in § 440.20 of this chapter, or shall decline to pay a claim on or before the twenty-first day after they have notice of same, or shall otherwise resist unsuccessfully the payment of compensation, and the injured" person' shall have employed an attorney at law in the successful prosecution of his claim, there shall, in addition to the award, for compensation be awarded reasonable attorneys fee, * * , (Emphasis added.)
Petitioner contends that it was error to deny him a reasonable attorney’s feé because the award of thd additional twenty percent under Section 440.20 was ah award of additional "compensation and therefore covered by Section 440.34. Respondent contends just' as vigorously that the Deputy was correct in holding this additional award to be a penalty, as to which no provision is made in Section 440.34 fpr payment of fees to counsel. ‘ ‘
This case is one of first impression in Florida and.so far as vie áre. informed the point has never been decided elsewhere. Indeed/ according to. Professor Larson,' only four, states, including Florida, ’ approach the problem of attorney fees in workmen’s compensation cases by making provision for such fees at the hearing or trial level by express statute. Larson on Workmen’s Compensation (1952) Section 83.12. Some authority is available, however, on the construction of statutory provisions pertaining to extra payment for delinquency as in Section 440.20(6) above.
Section 25 of the New York Workmen’s Compensation Act, McK.Consol.Laws, ’ c. 67," reads in part as follows : “If the employer or his insurance carrier shall-fail to make payments of compensation according to the terms of the award within fen days thereafter, except in case of an appeal, there shall be imposed a penalty eqúal to twenty percentum of the unpaid compensation * * (Emphasis added.) This “penalty” was imposed and', of course, called a “penalty” in Hart v. Perkins, 258 N.Y. 66, 179 N.E. 261, which was cited as persuasive in construing the comparable section of the Longshoremen’s and Harbor Workers’ Compensation Act, 33 U.S.C.A. § 914(f), in Twine v. Locke, 2 Cir., 68 F. 2d 712, cited by respondent. The language of the section of the federal statute last cited is substantially identical with that of 'our own statute, and in' the Twine case was said to have been based upon the’ New York Act. Subsequent federal cases, e. g., Arrow Stevedore Co. v. Pillsbury, 9 Cir., 88 F. 2d 446, and Travelers Insurance Co. v. Branham, D.C., 65 F.Supp. 512, in mentioning the 'amount of Longshoremen’s Act makes payable for delinquency have' called it a ,fpenalty”. Parts.'of our 'Workmen’s Compensation Law were taken from the New York Act and the Longshoremen’s Act; Royer v. United States Sugar Corp., 148 Fla. 537, 4 So. 2d 692. But neither of these statutes has a provision for attorney fees comparable with our own, and in none of the cases cited-above was the question now confronting us presented, nor was it of the least importance to decide whether or not the sum required to be paid was in fact in the nature of a penalty. See also 58 Am.Jur., Workmen’s Compensation, Section 549, p. 919, where the word “penalty” is used' to desc'ribe the indreased payment for delinquency, but without analysis.
Under the Florida Workmen’s Compensation Law, “compensation” is defined ás “the money allowance payable to an-employee or to his dependents as provided for in this chapter.” F.S. § 440.02(11), F.S.A. And see Royer v. United States Sugar Corp., supra; 4 So. 2d 692. A literal application of this definition would support petitioner’s contention that the twenty-percent prescribed by Section 440.20(6) is “compensation” but this would seem, without more, to be too -superficial an analysis in view of the interpretation, given by this court to Section 440.54. The latter section (which provides for payment of double the amount of compensation in case of violation of the child labor laws, of Florida, the employer alone and not the insurance .carrier being .liable for the increased, payment) was before us in Lollie v. General American Tank Storage Terminals, 160 Fla. 208, 34 So. 2d 306., We there held that although the double. payment was a penalty against the employer, it was still comprehended by Section 440.20(13) (now repealed, Laws 1951, c. 26877, § 2) which read in part: “The total compensation payable under this chapter for disability and death "shall in ho event exceed the sum of five thousand dollars * * ‡.”- (Emphasis added.) In sum, we held in the Lollie case that while an • amount payable may be a penalty for some purposes, it must be included in the term “compensation”’ for others.
It'will thus be seen that the problem before us depends upon a definition more functional than formal. It becomes advisable to-examine the nature of the delinquency payment for which the statute provides and to determine whether. or not it may-he regarded as the kind of , payment whose recovery should be attended by a ’reasonable fee for counsel necessarily employed. • .
Unlike the double compensation payment before us in the Lollie case, supra, the twenty percent delinquency payment is not restricted to the employer. One obvious purpose of Section 440.20, arid • espécially subsections (5) 'and (6) thereof, is to protect-the claimant against unnecessary delay in receiving his money. Petitioner contends, and we agree, that many if not most people receiving workmen’s compensation benefits are interested in promptness and regularity as well as in adequacy of payment, since the money is to be put to immediate use in defraying current operating expenses. If payment is delayed, money may have to be bprrowed, at. interest. Thus the primary and most useful social purpose of the twenty percent delinquency payment is to reimburse or compensate the claimant for any injury he may have suffered as a result of the delinquency. The amount recovered will generally be so small, however, being only twenty percent of the amount actually in arrears (in the present case the additional amount recovered was only $25.50) that if the claimant must make his own arrangements for counsel fees, as respondent contends that he should, the statutory purpose will be thwarted. Moreover, delinquency will ordinarily imply disinclination or reluctance to pay, or at .least to pay promptly, which might well cause the claimant to retain counsel at this stage, or to call again upon counsel already retained, to enforce his rights.. He should not be impeded bv the thought of counsel fees which may render the enterprise an empty gesture so far.as he is concerned. The salutary purpose of Section 440,34(1), which is one of the few provisions of its kind in the United States, should not be nullified by restrictive interpretation. If doubt exists, it will be resolved in favor' of the working man. Florida Game & Fresh Water Fish Commission v. Driggers, Fla., 65 So. 2d 723; Di Giorgio Fruit Corp. v. Pittman, Fla., 49 So. 2d 600.
We hold that the twenty, percent additional ’amount 'here recovered under Section 440.20(6) was “compensation” within the meaning of Section 440.34(1). It follows that it was error to deny to the claimant reasonable attorney fees.
The writ is granted, the challenged order quashed and-the cause remanded for further proceedings in conformity with this opinion.
ROBERTS, C.1 J., and TERRELL, THOMAS, MATHEWS and DREW, JJ., concur. SEBRING, J., not participating.
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Murray v. Mariner Health and ACE USA, 994 So. 2d 1051 (Fla. 2008)…umstances 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 discouraged from delaying timely payment of benefits owed. Thereafter…
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Brantley v. A D H Bldg. Contractors, Inc., 215 So. 2d 297 (Fla. 1968)…due. Rutherford v. Seven-Up Bottling Co., 83 So. 2d 269 (Fla.1955). An obvious purpose of the penalty provision is to induce prompt payment of legitimate claims and to protect claimants against unnecessary and unjustifiable delays. Lockett v. Smith, 72 So. 2d 817 (Fla.1954). Consequently, in the instant case, § 440.20(6), supra, if applicable at all, would apply after October 30, 1966. The check to cover the lump sum payment did not finally clear until November 22, 1966. The question which recurs is whether…
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Pilar N. Torres v. Eden ROC Hotel, 238 So. 2d 639 (Fla. 1970)…cessary and unjustifiable delay of more than one year in payment of a claim conceded to be due. The order of the Industrial Claims Judge is in error, and that of the Industrial Relations Commission ordering penalties is proper. See Lockett v. Smith, 72 So. 2d 817 (Fla.1954). Claimant contends the Judge of Industrial Claims erred in failing to include the value of uniforms furnished the claimant in calculating the average weekly wage for which compensation should be paid. Claimant is correct. Evidence in the…
Previewing 3 of 13 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Lollie v. Gen. Am. Tank Storage Terminals & the Travelers Ins. Co., 160 Fla. 208 (Fla. 1948)
- Royer v. United States Sugar Corp. & Cont'l Cas. Co., 148 Fla. 537 (Fla. 1941)
- Fla. Game & Fresh Water Fish Comm'n v. Driggers, 65 So. 2d 723 (Fla. 1953)
- Di Giorgio Fruit Corp. v. Pittman, 49 So.2d 600 (Fla. 1950)
- Twine v. Locke, 68 F.2d 712 (2d Cir. 1934)
- Arrow Stevedore Co. v. Pillsbury, 88 F.2d 446 (9th Cir. 1937)