EMMA MUNOZ, Employee/Respondent,
v.
JBS USA, LLC, and SEDGWICK CLAIMS, Employer-Insurer/Respondents,
and
LAW OFFICES OF DONALD F. NOACK, Attorney/Appellant.
No. WC19-6253
Minnesota Workers Compensation
Workers' Compensation Court of Appeals
May 15, 2019
ATTORNEY
FEES. The compensation judge appropriately applied the
Irwin factors in determining how to divide
reasonable attorney fees from a settlement between an
employee’s current and former attorneys, and
substantial evidence supports the compensation judge’s
finding that both attorneys provided valuable legal services
to the employee and her division of the attorney fee.
Mark
J. Thalberg, Schneider & Madsen, Willmar, Minnesota, for
the Employee/Respondent.
William G. Laak, McCollum, Crowley, Moschet, Miller &
Laak, Ltd., Bloomington, Minnesota, for the
Employer-Insurer/Respondents. Vincent A. Peterson, Law Office
of Donald F. Noack, Mound, Minnesota, for the Appellant.
Determined by: Sean M. Quinn, Judge, Patricia J. Mlun, Chief
Judge, Deborah K. Sundquist, Judge
Compensation Judge: Catherine A. Dallner
Affirmed.
OPINION
SEAN
M. QUINN, Judge.
This
case involves an attorney fee dispute. The employee’s
current attorney and her former attorney both claimed 100
percent of attorney fees withheld from a stipulation for
settlement. Following a hearing, a compensation judge awarded
approximately two-thirds of the fee to the current attorney
and approximately one-third of the fee to the former
attorney. The former attorney appeals. Because the
compensation judge’s findings and order are supported
by substantial evidence and the law, we affirm.
BACKGROUND
The
employee, Emma Munoz, suffered injuries while employed by the
employer, JBS USA, LLC, on February 4 and November 7, 2016.
Although the employer and its insurer admitted the injuries,
the nature and extent of the employee’s injuries were
subject to dispute.
In
August 2017, the employee stopped working due to the effects
of her injuries and the employer and insurer began to
voluntarily pay temporary total disability (TTD) benefits to
the employee. Also in August 2017, the employee hired the Law
Offices of Donald F. Noack to represent her in her
workers’ compensation claim. She signed a standard
workers’ compensation retainer agreement with attorney
Noack. Other than her initial meeting with attorney Noack,
which the employee described as hurried, lasting 20 minutes,
the employee had no further direct contact with him, by phone
or in person.
The
Noack law firm, through attorney Noack, attorney Vincent
Peterson, and paralegal staff, prepared and reviewed various
correspondence with the employee, the employee’s
qualified rehabilitation consultants, the defense attorney,
the Department of Labor and Industry, and the Office of
Administrative Hearings (OAH). They reviewed medical records,
prepared and filed a claim petition, made discovery demands,
and responded to the employer and insurer’s discovery
demands. They also engaged in email correspondence and
reviewed intervention pleadings.
In
December 2017, a mediation took place between defense counsel
and attorney Peterson regarding the employee’s claims.
Before the date of the mediation, there is no evidence in the
record that anyone from the Noack law firm contacted the
employee to discuss evaluation of her claim or to advise her
that a mediation was to take place. There is no evidence in
the record that the Noack law firm made a settlement demand
on behalf of their client. At some point during the
mediation, attorney Peterson called the employee and
presented the defense offer, which he recommended she accept.
After attorney Peterson told her to decide as quickly as
possible, she asked for 15 minutes to think about the offer
and he agreed. Approximately 15 minutes later, she called him
back and accepted the offer. The next day, she withdrew her
acceptance of the offer. She testified at the hearing that
she was uncomfortable accepting the offer, having felt
pressured and having no understanding of the settlement
agreement.
Shortly
after rejecting the settlement proposal, the employee
contacted attorney Mark Thalberg. A few weeks later she hired
attorney...
