Opinion ID: 2633375
Heading Depth: 1
Heading Rank: 6

Heading: Did the Industrial Commission err in awarding attorney's fees based upon a percentage of the benefits awarded rather than upon the time spent by Claimant's counsel?

Text: In its initial order awarding attorney fees, the Industrial Commission relied upon IDAPA 17.02.08 as governing the awarding of attorney fees in this case. The Commission stated as follows: The Commission has adopted rules governing attorneys fees for workers' compensation cases. See, IDAPA 17.02.08. These Rules define reasonable fees as thirty percent of the available funds in the case in which a hearing has been held and briefs submitted, as was the case here. Claimant is therefore entitled the sum of thirty percent of the benefits awarded as reasonable attorney fees. That rule, by its terms, [2] applies to the approval of attorney fees under Idaho Code § 72-803, not to the awarding of attorney fees under Idaho Code § 72-804. In its order denying Seiniger's request for reconsideration of the attorney fee award and for a formal hearing on the issue, however, the Industrial Commission reevaluated the attorney fee award, stating as follows: Claimant contends the August 6, 1999, Order Awarding Attorney Fees is not reasonable under the circumstances of the case, and the Commission failed to complete the proper analysis required under Idaho Code § 72-804 and the applicable case law. The Commission fully considered Hogaboom v. Economy Mattress, 107 Idaho 13 [684 P.2d 990] (1971)[ (1984) ], in addition to all facts and circumstances available. Claimant's affidavit in support of attorney's fees is a list of all the work performed by Claimant's counsel. It failed to offer a final sum, which would represent the attorney's efforts toward attaining the TTDs. Furthermore, the Commission found that the fees agreed to by the Claimant and her counsel were based on a contingency fee agreement. Although this agreement is not determinative regarding Idaho Code § 72-804, the Commission finds the information to be very relevant. The record fully supports the 30% attorney's fees awarded by the Commission. Thus, in its final order, the Commission did not rely upon IDAPA 17.02.08. Rather, it relied upon this Court's decision in Hogaboom v. Economy Mattress, 107 Idaho 13, 684 P.2d 990 (1984), and upon the facts and circumstances shown by the record, including the fact that Seiniger and the Claimant had entered into a contingent fee agreement. The Commission's final decision on the issue of the amount of attorney fees was not based upon IDAPA 17.02.08. Idaho Code § 72-804 grants to the Industrial Commission the discretion to fix the amount of a reasonable attorney fee awarded under that statute. There is nothing in either that statute or our decisions that prevents the Commission from concluding, in the exercise of its discretion, that a reasonable attorney fee in a particular case is a percentage of the benefits awarded. Therefore, the Commission did not err in deciding to award attorney fees based upon a percentage of the benefits awarded rather than upon the time spent by Seiniger in representing the Claimant.