Loyd v. Family Dollar Stores of Neb.
304 Neb. 883
Neb.2020Background
- Cheryl Loyd filed a workers’ compensation claim for a work-related hernia; Family Dollar later agreed to a lump-sum settlement ($150,000) plus an interest-bearing medical account.
- Because Loyd is a Medicare beneficiary, the lump-sum settlement required approval by the Workers’ Compensation Court under Neb. Rev. Stat. § 48-139.
- The compensation court requested revisions, an itemized list of medical expenses, and disclosure of the amount of attorney fees to be paid from the settlement.
- Loyd’s counsel objected to disclosing fee amounts on attorney-client privilege grounds; the joint stipulation supplied everything except the fee amount.
- The compensation court issued an Order of Disapproval of the lump-sum application, finding it could not determine whether the settlement was in Loyd’s best interests without fee disclosure; the court neither dismissed the application nor continued the hearing.
- The parties appealed; the Nebraska Supreme Court first addressed whether the disapproval order was a final, appealable order and whether the Rules of Professional Conduct comment conferred appellate jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the compensation court’s order disapproving the lump-sum settlement is a final, appealable order | Loyd argued the order is appealable (appeal filed within 30 days) and that Rule 3-501.6 comment permits appeal when privilege is implicated | Family Dollar argued the disapproval harmed settlement expectations and should be reviewable on appeal (but failed to file a proper cross-appeal form) | The order of disapproval, standing alone (without dismissal), is not a final, appealable order; appellate jurisdiction lacking, appeal dismissed |
| Whether the Nebraska Rules of Professional Conduct (comment to § 3-501.6) or a claim of privilege creates an independent right to immediate appellate review | Loyd argued Comment 11 to § 3-501.6 contemplates appeal after an adverse ruling and requires consultation about appeal | Family Dollar did not advance a conflicting statutory basis for immediate appellate review | The court held the Rules’ comment does not confer appellate jurisdiction; appeal rights are purely statutory and interlocutory privilege disputes are not appealable (other remedies like mandamus or contempt appeals may be appropriate) |
Key Cases Cited
- State v. Uhing, 301 Neb. 768, 919 N.W.2d 909 (Neb. 2018) (appellate jurisdiction requires a final order)
- Heckman v. Marchio, 296 Neb. 458, 894 N.W.2d 296 (Neb. 2017) (standards for appellate jurisdiction questions of law)
- Deines v. Essex Corp., 293 Neb. 577, 879 N.W.2d 30 (Neb. 2016) (an order in a special proceeding is appealable if it affects a substantial right)
- Becerra v. United Parcel Service, 284 Neb. 414, 822 N.W.2d 327 (Neb. 2012) (appellate jurisdiction absent for nonfinal orders)
- Hallie Mgmt. Co. v. Perry, 272 Neb. 81, 718 N.W.2d 531 (Neb. 2006) (orders compelling privileged discovery are not appealable as final orders)
- Mohawk Indus. v. Carpenter, 558 U.S. 100 (U.S. 2009) (mandamus and other remedies act as safety valves for promptly correcting serious errors involving privileged information)
