110 A.3d 713
Md. Ct. Spec. App.2015Background
- Brunson injured her back at work and sought workers’ compensation; the Maryland Workers’ Compensation Commission (Commission) initially awarded temporary total disability (TTD) benefits and authorized medical treatment, and approved attorney’s fees totaling $1,598.40, which were escrowed pending appeal.
- The employer, University of Maryland Medical System Corporation (UMMSC), appealed; a jury in circuit court found Brunson was not TTD after Dec. 20, 2010, and vacated the Commission’s prior orders, leading the Commission to rescind and annul the May and November 2011 awards.
- UMMSC had paid $30,554.74 in TTD benefits pursuant to the initial orders; it sought a credit for that overpayment against any future award.
- On remand, the Commission awarded Brunson $7,100 for permanent partial disability but offset that award entirely by the $30,554.74 credit, leaving no net payment to Brunson; it denied payment of the previously approved attorney’s fees and denied additional fees, penalties, or expense/doctor reimbursements.
- Brunson sought judicial review in circuit court, which affirmed the Commission. Brunson appealed to the Court of Special Appeals; the court affirmed the Commission’s denial of fees and penalties and its refusal to award fees on the offset permanency award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission must pay previously approved attorney’s fees after the underlying compensation orders were rescinded | Brunson: the approved fee created a charging lien that survives rescission and can be extinguished only by payment | UMMSC/Commission: rescission/annulment voided the underlying awards so no compensable fund exists for a lien to attach | Held: Lien extinguished when awards were rescinded; no final award existed for fees to attach |
| Whether penalties/fines for nonpayment of attorney’s fees were warranted | Brunson: penalties available because escrowed fees were never paid | UMMSC/Commission: no final enforceable fee order existed, so no penalty exposure | Held: No penalties; without a payable fee award there is nothing to penalize |
| Whether attorney’s fees and expense/doctor reimbursement may be awarded on the permanency award that was offset to zero | Brunson: fees and reimbursements should be paid despite the employer’s credit for earlier overpayment | UMMSC/Commission: COMAR and statute permit fees only on amount actually due; offset left no amount due | Held: No fees or reimbursements — offset left no fund from which fees could be paid |
| Whether any exceptional-circumstances relief required awarding fees despite no amount due | Brunson: (implicitly) relief should protect counsel/experts who assisted claimant | Commission: no exceptional-circumstances claim was made at hearing; COMAR bars fees where claimant entitled to no compensation absent exceptional circumstances | Held: No exceptional-circumstances finding; fees not allowed |
Key Cases Cited
- Engel & Engel, P.A. v. Ingerman, 353 Md. 43 (1999) (describes workers’ compensation policy and Commission authority to regulate attorney fees)
- Feissner v. Prince George’s County, 282 Md. 413 (1978) (offsets that eliminate an award leave no fund for attorney’s lien to attach)
- Rhoads v. Sommer, 401 Md. 131 (2007) (describes operation of common-law charging lien on recovery)
- Staley v. Board of Education, 308 Md. 42 (1986) (escrow and fee adjustments when awards are reduced on appeal)
- Hoffman v. Liberty Mutual, 232 Md. 51 (1963) (limitations on withholding fees when awards are modified)
- Consol. Const. Servs., Inc. v. Simpson, 372 Md. 434 (2002) (charging liens secure attorney interest in final awards)