Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Controlling statute.
Fees for legal services are governed by Minnesota Statutes,
sections
176.081
and
176.191.
Subp. 2.
Withholding of
attorney fees.
Upon receipt of the notice of representation, the employer and
insurer may withhold attorney fees on genuinely disputed portions of claims
under Minnesota Statutes, section
176.081.
Attorney fees must be withheld on genuinely disputed portions of claims if the
employee's attorney so requests.
Subp.
3.
Statement of fees.
A. An attorney claiming attorney fees must
serve on the employee and the insurer, and file with the division, a statement
of attorney's fees on a form prescribed by the commissioner, including:
(1) a list of benefits which were genuinely
in dispute and which would not have been recovered without the attorney's
involvement and any certification or noncertification of a dispute issued under
Minnesota Statutes, section
176.081,
subdivision 1, paragraph (c);
(2)
the amount of attorney fees previously paid for the same injury;
(3) the amount the employer and insurer are
currently withholding as attorney's fees, if known;
(4) the amount claimed for attorney's
fees;
(5) a statement that the
attorney is licensed to practice law in the state;
(6) a statement of whether or not an
application is being made for attorney fees under Minnesota Statutes, sections
176.081,
subdivision 7, and 176.191;
(7) a
notice that the employee or insurer has ten calendar days to object to the
attorney fees requested;
(8) the
date the statement was served on the employee, employer, and insurer;
(9) the full address and phone number of the
employee's attorney;
(10) the
number of hours spent in representation of the employee and the attorney's
hourly fee; and
(11) an itemization
of costs incurred and by whom paid.
The statement must be accompanied by the retainer agreement, if
not previously filed. Any party may object to the statement of fees in writing
within ten days of the date the statement was served. If, at the hearing or in
a stipulation for settlement or mediation agreement, all parties state on the
record or include in the stipulation or mediation agreement that they have no
objection to the statement of attorney's fees, the judge or commissioner may
issue an appropriate order without waiting ten days. Except where excess fees
are requested in item B, an oral statement of attorney fees may be presented at
the hearing on the record if the case has been tried to a conclusion, no
objection is made at the hearing, and a retainer agreement is filed. An oral
statement of attorney fees must contain the information in this item.
B. If a party claims
fees in excess of the amounts listed in Minnesota Statutes, section
176.081,
subdivision 1, paragraph (a) or (b), the party shall attach the following
additional information to the statement of attorney fees prescribed in item A:
(1) an exhibit showing specific legal
services performed, the date performed, and the number of hours spent for each
service in representation of the employee;
(2) a statement of expertise and experience
in workers' compensation matters;
(3) a brief description of the factual,
medical, and legal issues in dispute;
(4) the nature of proof required in the case
and the responsibility assumed by counsel; and
(5) whether or not a hearing on attorney fees
is requested.
Subp.
4. [Repealed, 29 SR 1448]
Subp.
5. [Repealed, 29 SR 1448]
Subp.
6. [Repealed, 29 SR 1448]
Subp.
7.
Genuinely disputed portions of claims.
This subpart provides the applicable principles for the
commissioner, compensation judge, or Workers' Compensation Court of Appeals to
determine whether the benefit paid or payable was genuinely disputed for the
purpose of calculation of a contingent fee under Minnesota Statutes, section
176.081,
subdivision 1.
The statement of attorney fees or petition for excess attorney
fees must include, for each benefit paid or awarded for which an attorney fee
is sought, sufficient information to allow the fee determiner to apply the
principles contained in this subpart.
The principles applicable to determine whether a benefit was
genuinely disputed are as follows:
A.
If primary liability had been denied for the claim, all compensation paid or
awarded to the employee or dependent other than payment of medical and
rehabilitation expenses, is used to compute the attorney's fee.
B. If there was no dispute concerning the
rate, amount, duration, or eligibility for a benefit and the benefit was timely
paid, the benefit may not be used to compute the fee.
C. The fee may not be computed on the entire
amount of a benefit where only a portion of the benefit is disputed. Only the
disputed portion of the benefit may be used to compute the fee.
D. If eligibility for the benefit is
disputed, the entire benefit during the period for which eligibility was
disputed is used to compute the fee.
E. If the rate of the benefit is disputed,
only the amount paid or awarded above the rate admitted and timely paid is used
to compute the fee.
F. If the
duration of the benefit is disputed, only the portion of the benefit not
conceded and not timely paid is used to compute the fee.
G. Benefits allegedly admitted but not timely
paid may be used to compute the fee.
H. Benefits timely paid may not be used to
compute the fee except where primary liability for the entire claim or
eligibility for the benefit had been generally denied.
I. The difference between the compensation
eventually paid or awarded and the amount admitted and timely paid is used to
compute the fee.
J. The following
benefits may be used to compute the fee:
(1)
remodeling compensation pursuant to Minnesota Statutes, section
176.137,
which was in dispute under this subpart;
(2) a penalty sum awarded to the employee or
dependent for a benefit which was in dispute under this subpart;
(3) interest on a benefit which was in
dispute under this subpart; and
(4)
a benefit which was in dispute under this subpart although reimbursable to an
intervenor.
K.
Generally, each benefit is evaluated separately, however, if the rate,
duration, or eligibility for permanent partial disability is disputed, the
difference between the permanent partial disability which was conceded and
timely paid and the amount of disputed permanent partial disability eventually
paid or awarded is used to compute the fee.
L. The principles of this subpart apply to
settlement sums. Attorney fees for a portion of a lump sum award allocated to
medical or rehabilitation expenses must comply with Minnesota Statutes, section
176.081,
subdivision 1.
Subp. 8.
Determinations without a hearing.
The office shall assign an attorney fee statement to a judge
when action by a judge is needed. The judge shall take action on the attorney
fee statement within 30 days of the filing of the statement by issuing an order
advising the parties of how the attorney fee statement will be addressed or
scheduling a conference or hearing on attorney fees.
If an objection to the requested fee has been filed and the
interested parties waive their right to a hearing, the fees may be determined
under Minnesota Statutes, section
176.305
or
176.322,
without a hearing. A hearing must be scheduled and heard on the record if an
objection has been filed and all interested parties have not waived their right
to a hearing. Where no objection to the requested fee has been filed, the judge
or court before whom the matter is pending shall issue a summary decision under
Minnesota Statutes, section
176.305,
regarding the amount of attorney fees owing under this part and Minnesota
Statutes, section
176.081
or
176.191.
Statutory Authority: MS s
14.51;
175.17;
175.171;
176.081;
176.155;
176.231;
176.285;
176.312;
176.361;
176.83
