Fla. Gov. Signs Bill Capping Comp Attorney Fees

NU Online News Service, June 1, 2:55 p.m. EDT

Florida Gov. Charlie Crist has signed into law a bill reinstating a ban on capping hourly attorneys' fees in workers' compensation cases that was overturned by the State Supreme Court.

The governor on Friday put his signature on HB 903, sponsored by Rep. Anitere Flores, R-Miami, in response to the October 2008 Emma Murray v. Mariners Health decision.

Under the high court's ruling, hourly attorneys' fees in workers' compensation cases, capped under 2003 legislation, were reinstated because the court found the cap schedule conflicted with other language authorizing reasonable fees.

The court's opinion noted that in the case before them the attorney fees of $684.84 that were awarded equaled an hourly rate of $8.11.

"It is obvious, as demonstrated by the present case, that applying the formula in all cases will not result in the determination of reasonable attorney fees in all cases. In some circumstances, applying the formula will result in inadequate fees, and in some circumstances, applying the formula will result in excessive fees," the court found.

The bill, signed by the governor, states a judge "may approve an alternative attorney's fee not to exceed $1,500 only once per accident, based on a maximum hourly rate of $150 per hour, if the judge of compensation claims expressly finds that the attorney's fee amount provided for [by the bill's formula], based on benefits secured, fails to fairly compensate the attorney for disputed medical-only claims…and the circumstances of the particular case warrant such action."

The American Insurance Association after approval by the legislature noted that passage came despite trial bar opposition. Without the measure, according to AIA, workers' comp rates would have increased by 6.4 percent effective April 1.

The bill states, "Any attorney's fee approved by a judge of compensation claims for benefits secured on behalf of a claimant must be equal to 20 percent of the first $5,000 of the amount of the benefits secured, 15 percent of the next $5,000 of the amount of the benefits secured, 10 percent of the remaining amount of the benefits secured, to be provided during the first 10 years after the date the claim is filed, and 5 percent of the benefits secured after 10 years."

William Stander, assistant vice president and regional manager for the Property Casualty Insurers Association of America (PCI), said, "We commend Gov. Crist for delivering promised savings to Florida employers.

"Hourly attorneys' fees were the biggest cost drivers in the workers' compensation system. This legislation was critical for restoring Florida's economy," he added.

He said the legislation "will play an integral role in strengthening the state's business community by allowing insurers to continue delivering low workers' compensation rates that directly benefit Florida employers."