SLF LABOR AND EMPLOYMENT ALERT October 2008

Employers Impacted by the Florida Supreme Court’s Decision in
Murray v. Mariner Health/ACE USA

On October 23, 2008, the Florida Supreme Court issued its opinion in Murray v. Mariner Health/ACE USA. The final decision has the potential to impact employers throughout Florida. In particular, the decision could, among other things, cause an increase in workers’ compensation insurance rates.

In Murray, the Court addressed attorney fee awards in workers’ compensation cases. The parties in Murray disputed how to calculate the attorney fee award in workers’ compensation cases. The dispute was whether an attorney fee award should be awarded on a contingency basis or on a reasonable fee basis. In resolving the dispute, the Court analyzed Section 440.34, Florida Statutes (2003), the statute in Florida that governs attorney fees in workers’ compensation cases. In the opinion, the Court acknowledged that Section 440.34(3), Florida Statutes, lacked a definition of the term “reasonable attorney’s fees” and further found that ambiguity existed when various sections of the statute were read together. The Court further noted, “[t]he Legislature did not indicate why it made the changes in respect to the determination of the amount of a claimant’s attorney fees in the history of the statute we have traced or in the 2003 revisions to subsections.”

Ultimately, the Florida Supreme Court concluded that attorney fee awards for claimants are to be considered on a reasonable fee basis; the Court further stated that “when not otherwise defined in the workers’ compensation statute, [reasonable attorney’s fees] are to be determined using the factors of rule 4-1.5(b) of the Rules Regulating the Florida Bar.” The Court expressly noted that the factors are to be applied “so as to award attorney fees for necessary legal services rendered in the processing of claims.” The Court also explained that “[i]nadequate fees and excessive fees are not reasonable fees.”

Notably, the Court acknowledged the Respondents’ concern that “hourly fees had been abused by tactics to delay the resolution of claims and build attorney fees.” To resolve this, the Court noted that “judges who hear these claims and determine the amount of the attorney fees under subsection (3) must be vigilant to award only reasonable and necessary fees.”

A full copy of the Florida Supreme Court’s opinion in Murray is available at the following link: http://www.floridasupremecourt.org/decisions/2008/sc07-244.pdf

Rule 4-1.5(b) of the Rules Regulating the Florida Bar can be accessed at the following link: http://www.floridabar.org/divexe/rrtfb.nsf/FV/A8644F2
15162F9DE85257164004C0429

Past Issues of SLF Labor and Employment Alert Posted on Website

You may view past issues of the SLF Labor and Employment Alert on the Firm’s website: www.sniffenlaw.com. After entering the Firm’s website, click on the “Publications” page.

211 East Call Street
Tallahassee, FL 32301
850.205.1996
850.205.3004 FAX