{ "id": 6141971, "name": "DEATH and PERMANENT TOTAL DISABILITY TRUST FUND v. James E. BREWER, Employee; Woodruff Electric Cooperative, Employer; Federated Rural Insurance Company, Carrier", "name_abbreviation": "Death & Permanent Total Disability Trust Fund v. Brewer", "decision_date": "2002-01-23", "docket_number": "CA 01-746", "first_page": "348", "last_page": "355", "citations": [ { "type": "official", "cite": "76 Ark. App. 348" }, { "type": "parallel", "cite": "65 S.W.3d 463" } ], "court": { "name_abbreviation": "Ark. Ct. App.", "id": 13370, "name": "Arkansas Court of Appeals" }, "jurisdiction": { "id": 34, "name_long": "Arkansas", "name": "Ark." }, "cites_to": [ { "cite": "Ark. Code Ann. \u00a7 11-9-715", "category": "laws:leg_statute", "reporter": "Ark. Code Ann.", "opinion_index": 0 }, { "cite": "67 Ark. App. 372", "category": "reporters:state", "reporter": "Ark. App.", "case_ids": [ 6141470 ], "year": 1999, "opinion_index": 0, "case_paths": [ "/ark-app/67/0372-01" ] }, { "cite": "68 Ark. App. 62", "category": "reporters:state", "reporter": "Ark. App.", "case_ids": [ 6137053 ], "weight": 3, "year": 1999, "opinion_index": 0, "case_paths": [ "/ark-app/68/0062-01" ] }, { "cite": "Ark. Code Ann. \u00a7 16-22-304", "category": "laws:leg_statute", "reporter": "Ark. Code Ann.", "year": 1999, "opinion_index": 0 }, { "cite": "50 Ark. App. 13", "category": "reporters:state", "reporter": "Ark. App.", "case_ids": [ 6136288 ], "weight": 2, "year": 1995, "opinion_index": 0, "case_paths": [ "/ark-app/50/0013-01" ] }, { "cite": "333 Ark. 343", "category": "reporters:state", "reporter": "Ark.", "case_ids": [ 703806 ], "weight": 2, "year": 1998, "opinion_index": 0, "case_paths": [ "/ark/333/0343-01" ] }, { "cite": "65 Ark. App. 63", "category": "reporters:state", "reporter": "Ark. App.", "case_ids": [ 6137228 ], "weight": 2, "year": 1999, "opinion_index": 0, "case_paths": [ "/ark-app/65/0063-01" ] }, { "cite": "265 Ark. 489", "category": "reporters:state", "reporter": "Ark.", "case_ids": [ 1664891 ], "weight": 2, "year": 1979, "opinion_index": 0, "case_paths": [ "/ark/265/0489-01" ] }, { "cite": "Ark. Code Ann. \u00a7 11-9-704", "category": "laws:leg_statute", "reporter": "Ark. Code Ann.", "year": 1996, "pin_cites": [ { "page": "(c)(3)" } ], "opinion_index": 1 } ], "analysis": { "cardinality": 576, "char_count": 13362, "ocr_confidence": 0.75, "pagerank": { "raw": 1.9201238649995435e-07, "percentile": 0.7328205235131469 }, "sha256": "ae9a1eb19a1920a3231aca419cf0f55c29eba8a751fe3f7a499c9ecbfe5ee2e9", "simhash": "1:bb39b1c34c1b28d1", "word_count": 2189 }, "last_updated": "2023-07-14T22:52:25.039079+00:00", "provenance": { "date_added": "2019-08-29", "source": "Harvard", "batch": "2018" }, "casebody": { "judges": [ "Hart, Neal, Vaught, and Baker, JJ., agree.", "Robbins, J., dissents." ], "parties": [ "DEATH and PERMANENT TOTAL DISABILITY TRUST FUND v. James E. BREWER, Employee; Woodruff Electric Cooperative, Employer; Federated Rural Insurance Company, Carrier" ], "opinions": [ { "text": "Terry Crabtree, Judge.\nThe appellant, Death and Permanent Total Disability Trust Fund, appeals from the Arkansas Workers\u2019 Compensation Commission\u2019s opinions directing it to withhold the claimant\u2019s attorney fee and pay it by separate check to the claimant\u2019s attorney. We find no error, and affirm.\nOn August 27, 1990, the appellee, Mr. James Brewer, sustained a work-related injury. Mr. Brewer\u2019s healing period ended in May 1992. Mr. Brewer\u2019s employer, Woodruff Electric Cooperatiave, also an appellee in this case, initially controverted the extent of permanent disability, but later stipulated to the extent of permanent disability at a pre-hearing conference. On August 19, 1996, an Administrative Law Judge (ALJ) ordered that \u201c[t]he claimant\u2019s portion of the controverted attorney\u2019s fee is to be withheld from, and paid out of, indemnity benefits and remitted, by the respondents, directly to the claimant\u2019s attorney.\u201d WoodruffElectric and the other appellee in this case, Federated Rural Electric Insurance Company, paid appropriate indemnity benefits but did not pay the appropriate attorney\u2019s fees as ordered. The Commission found that pursuant to Ark. Code Ann. \u00a7 ll-9-502(b) (Repl. 1996), the employer/insurance carrier met its liability for indemnity benefits on October 2, 1998. Appellant advised Mr. Brewer, the employer, and the insurance company that it would assume liability for payment of benefits effective October 2, 1998. It was unclear whether appellant advised Mr. Brewer\u2019s attorney of its date of the acceptance of the claim. On April 12, 1999, Mr. Brewer\u2019s attorney filed a petition for attorney\u2019s fees, seeking the back fees ordered to be withheld by the employer pursuant to the August 19, 1996 order. On September 7, 1999, the ALJ ordered appellant to withhold from all future indemnity benefits paid to claimant, and issue by separate check, the claimant\u2019s portion of the attorney\u2019s fees to claimant\u2019s attorney. Appellant appealed this order, and the Commission on two occasions remanded the case to the ALJ on procedural issues.\nOn November 7, 2000, the ALJ issued an opinion and order, ordering the appellant to withhold claimant\u2019s one-half attorney\u2019s fees from all future indemnity benefits and issue the withheld monies by separate check to claimant\u2019s attorney. The ALJ ordered this procedure pursuant to Arkansas Workers\u2019 Compensation Commission Rule 10. Appellant appealed this ruling, and the Commission, by order dated April 4, 2001, affirmed the ALJ\u2019s findings. On May 24, 2001, upon motions for reconsideration, the Commission filed an opinion directing appellant to pay a lump sum attorney\u2019s fee to claimant\u2019s attorney equal to five percent for controversion accrued from October 2, 1998, through the date of final order, ending the attorney-fee litigation in this case. The Commission also directed appellant to withhold from the benefits payable to the claimant an amount equal to six and one-half percent of the claimant\u2019s weekly benefits (five percent to claimant\u2019s attorney and one and one-half percent for the appellant to recoup its lump sum payment). Once the lump sum fee is recouped, the appellant is then to reduce benefits to a five percent withholding. The appellant has brought a timely appeal before this court.\nWhen reviewing a Commission decision, we view the evidence and all reasonable inferences deducible therefrom in the fight most favorable to the findings of the Commission and affirm that decision if it is supported by substantial evidence. Clark v. Peabody Testing Serv., 265 Ark. 489, 579 S.W.2d 360 (1979). Substantial evidence is that which a reasonable mind might accept as adequate to support a conclusion. Crossett Sch. Dist. v. Fulton, 65 Ark. App. 63, 984 S.W.2d 833 (1999). The issue is not whether this court might have reached a different result from the Commission. Malone v. Texarkana Pub. Schs., 333 Ark. 343, 969 S.W.2d 644 (1998). If reasonable minds could reach the result found by the Commission, we must affirm the decision. Bradley v. Alumax, 50 Ark. App. 13, 899 S.W.2d 850 (1995).\nThe issue in the present case, as correctly pointed out by the Commission, is how, and by whom, checks are to be paid to claimant\u2019s attorney for the claimant\u2019s one-half of the fee due to his attorney. Arkansas Code Annotated \u00a7 ll-9-715(a)(2)(B)(i) (Supp. 2001) states:\nIn all other cases, whenever the commission finds that a claim has been controverted, in whole or in part, the commission shall direct that fees for legal services be paid to the attorney for the claimant as follows: One-half (V2) by the employer or carrier in addition to compensation awarded; and one-half (V2) by the injured employee or dependents of a deceased employee out of compensation payable to them.\nThe Commission relied on its Rule 10, along with the attorney lien statute found at Ark. Code Ann. \u00a7 16-22-304 (Repl. 1999), for its decision that it has the power to direct the manner in which the proceeds of an award are to be disbursed in order to protect the ability of the claimant\u2019s attorney to receive his fee. When reviewing the Commission\u2019s interpretation and application of its rules, we give the Commission\u2019s interpretation great weight; however, if an administrative agency\u2019s interpretation of its own rules is irreconcilably contrary to the plain meaning of the regulation itself, it may be rejected by the courts. Cyphers v. United Parcel Serv., 68 Ark. App. 62, 3 S.W.3d 698 (1999). While not conclusive, the interpretation of a statute by an administrative agency is highly persuasive. Clark v. Sbarro, 67 Ark. App. 372 (1999). An administrative agency\u2019s interpretation of a statute or its own rules will not be overturned unless it is clearly wrong. Cyphers, supra.\nArkansas Code Annotated \u00a7 16-22-301 (Repl. 1999) provides that \u201cit is the intent of \u00a7\u00a7 16-22-302 to -304 to allow an attorney to obtain a lien for services based on his or her agreement with his or her client and to provide for compensation in case of a settlement or compromise without the consent of the attorney.\u201d In this case, Mr. Brewer has never ended his contractual relationship with his attorney. There has not been any setdement or compromise of this case with or without the consent of Mr. Brewer\u2019s attorney. As such, we find that the attorney Hen statute is inapplicable to this case, and the Commission erred in relying on the statute for its decision.\nHowever, we cannot say that the Commission\u2019s interpretation of its Rule 10 was clearly wrong. Therefore, we hold that Rule 10 gives the Commission the authority to direct appellant to withhold claimant\u2019s one-half attorney\u2019s fee and pay that amount by separate check to claimant\u2019s attorney.\nArkansas Code Annotated \u00a7 ll-9-205(a)(l)(A) (Repl. 1996) provides that for purposes of administering the provisions of this chapter, the Commission is authorized \u201cto make such rules and regulations as may be found necessary.\u201d Under this authority, the Commission promulgated Rule 10, which provides that: \u201cin all cases where the petition for a fee is presented by attorneys or representatives of a claimant and a fee is granted the fee shall be paid by separate check.\u201d\nWe agree with the Commission that the threshold issue in this case does not involve the issue as to who owes an attorney\u2019s fee or by what formula a fee is calculated. Rather, this case involves the issue as to the administrative means of how checks are exchanged. We agree with the Commission that Rule 10 gives it authority to direct that separate checks be remitted directly to a claimant\u2019s attorney.\nAppellant argues that at the time Rule 10 was promulgated, a different version of Ark. Code Ann. \u00a7 11-9-715 was in effect. The requirement that a claimant pay one-half of his attorney\u2019s fee was not enacted until 1987. Before 1987, the employer or insurance carrier was required to pay all of the fee. As such, appellant submits that the fee was paid by separate check by the employer or insurance carrier because it could not be taken out of the proceeds of a claimant who owed no fee at all. Appellant argues that therefore the Commission\u2019s rebanee on Rule 10 was misplaced.\nIn addressing appellant\u2019s argument, we conclude that the Commission could have changed Rule 10 when section 11-9-715 was amended, but it did not. Instead, the Commission chose not to alter Rule 10. We will not speculate as to why the Commission decided not to change Rule 10. It is immaterial when Rule 10 was initially promulgated. The fact remains that Rule 10 is still in effect, and that this Rule gives the Commission the power for its orders in this case.\nSecond, appellant asks this court to hold that it was not under any legal obligation to begin withholding appellee\u2019s part of the attorney fee commencing with the ALJ\u2019s September 7, 1999, award. The Commission addressed this issue in its May 24, 2001 order, stating that appellant is directed to \u201cimmediately begin withholding from the benefits payable to claimant an amount equal to 6'/2% of the claimant\u2019s weekly benefits for future disbursement depending on the outcome of the Trust Fund\u2019s appeal to the Court of Appeals.\u201d (Emphasis in original). In fact, appellant states in its brief that it appears that the Commission \u201chas conceded that the Trust Fund was not under a legal obligation to withhold monies pursuant to the September 7, 1999 Order of the law judge.\u201d We agree.\nWe hold that the Commission did not err in requiring appehant to withhold appellant\u2019s one-half attorney\u2019s fee from his indemnity benefits, and issue by separate check the withheld monies to appellee\u2019s attorney.\nAffirmed.\nHart, Neal, Vaught, and Baker, JJ., agree.\nRobbins, J., dissents.\nWe note that appellant brought another point on appeal arguing that the Commission erred when in its May 24, 2001 opinion it ordered that appellant should begin immediately to withhold the claimant\u2019s one-half fee despite the fact that appellant appealed that order in its April 25, 2001 notice of appeal. However, we need not address this point, as appellant states in its brief that it \u201cnow abandons that part of its appeal.\u201d", "type": "majority", "author": "Terry Crabtree, Judge." }, { "text": "John B. ROBBINS, Judge,\ndissenting. I agree with the majority\u2019s holding that the attorney\u2019s lien statute is inapplicable to this case. However, I do not agree with its holding that Rule 10 authorized the Commission to direct the appellant Death and Permanent Disability Trust Fund to withhold the appellee-claimant\u2019s share of his attorney\u2019s fee from each compensation check and to remit the amount withheld by separate check directly to the appel-lee-claimant\u2019s attorney. Thus, I would reverse the Commission\u2019s decision.\nThe new Workers\u2019 Compensation Act provides that, \u201cAdministrative Law Judges, the Commission, and any reviewing courts shall construe the provisions of the chapter strictly.\u201d Ark. Code Ann. \u00a7 11-9-704(c)(3) (Repl. 1996). The claimant\u2019s attorney in the instant case is entitled to attorney\u2019s fees under Ark. Code Ann. \u00a7 ll-9-715(a)(2)(B)(i) (Repl. 1996), which provides that fees are paid \u201cOne-half (V2) by the employer or carrier in addition to compensation awarded; and one-half (V2) by the injured employee . . . out of compensation payable to them.\u201d Construing this statute strictly, as we must, it is the claimant that must pay attorney\u2019s fees out of compensation paid to him. The attorney\u2019s fee statute at issue does not even mention the Death and Permanent Disability Fund, and the Commission lacks the authority to broaden the statute and order the Fund to write separate checks to the claimant\u2019s attorney as payment of fees owed by claimant to his attorney.\nIn reaching its decision, the Commission relied on Rule 10, which provides, \u201cIn all cases where the petition for a fee is presented by attorneys or representatives of a claimant and a fee is granted, the fee shall be paid by separate check.\u201d However, when promulgated, Rule 10 could not have contemplated payment of the claimant\u2019s part of his attorney\u2019s fees. This is so because Rule 10 became effective in 1982, and the statute requiring the claimant to pay half of the attorney\u2019s fees was not enacted until 1987. Before 1987 only the employer, and not the claimant, could be ordered to pay attorney\u2019s fees. See Ark. Stat. Ann. \u00a7 81-1332 (Supp. 1985). The only logical interpretation of Rule 10 is that if an employer is ordered to pay compensation and fees, it writes separate checks to the claimant and claimant\u2019s attorney. But Rule 10 does not stand for the proposition that a claimant\u2019s portion of the attorney\u2019s fees shall be withheld, and paid on claimant\u2019s behalf, by the entity paying the compensation.\nIt is my view that strict construction of the workers\u2019 compensation law mandates that the claimant is responsible for his own attorney\u2019s fees, and that the Commission erred in ordering appellant to pay the fees on claimant\u2019s behalf. If the method of paying attorney\u2019s fees in workers\u2019 compensation cases is to be changed, I submit that effecting such change is a matter for the legislature and not the appellate courts. I respectfully dissent.", "type": "dissent", "author": "John B. ROBBINS, Judge," } ], "attorneys": [ "David L. Pake, for appellant.", "Guy Brinkley, for appellee." ], "corrections": "", "head_matter": "DEATH and PERMANENT TOTAL DISABILITY TRUST FUND v. James E. BREWER, Employee; Woodruff Electric Cooperative, Employer; Federated Rural Insurance Company, Carrier\nCA 01-746\n65 S.W.3d 463\nCourt of Appeals of Arkansas Divisions III and IV\nOpinion delivered January 23, 2002\nDavid L. Pake, for appellant.\nGuy Brinkley, for appellee." }, "file_name": "0348-01", "first_page_order": 390, "last_page_order": 397 }