S. Kry-Puy v. WCAB (C&A Labor, Inc.)
2525 C.D. 2015
| Pa. Commw. Ct. | Oct 11, 2016Background
- Claimant Samedy Kry-Puy filed a workers’ compensation claim for right forearm/hand/finger injuries sustained at work on Nov. 20, 2012; Employer initially denied, then issued a Notice of Compensation Payable (NCP) on Aug. 16, 2013.
- Claimant alleged Employer unreasonably contested the claim from filing (Mar. 14, 2013) until the NCP (Aug. 16, 2013).
- Claimant’s counsel sought a 20% attorney fee of both indemnity benefits and medical bill payments ($234,902 in medical bills).
- WCJ found Employer’s contest was unreasonable only for the period Mar. 14–Aug. 15, 2013; awarded 20% of indemnity benefits for that period but denied 20% of medical benefits as unreasonable based on limited attorney time (≈1.5 hours) and average difficulty.
- The Board affirmed; claimant’s counsel appealed to this Court, arguing she was automatically entitled to 20% of medical benefits and/or a larger fee. The Commonwealth Court affirmed the Board and WCJ.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether counsel is entitled to 20% of medical benefits as part of an unreasonable-contest fee under §440 | Counsel: 20% of medical benefits is appropriate (relying on precedent) | Employer/WCJ: 20% of medical benefits would be unreasonable given limited work and partial contest | Held: Fee may include medical benefits only if reasonable; here 20% of medical bills was unreasonable and denied |
| Whether the contingency fee agreement’s 20% charge on medical bill payments must be approved under §442 | Counsel: Contingency agreement should be approved in full (including 20% of medical) | WCJ/Board: §442 requires separate reasonableness analysis for medical fees; approval can be limited | Held: WCJ properly approved 20% of indemnity (per se reasonable) but declined 20% of medical benefits after quantum meruit analysis |
| Whether WCJ abused discretion in relying on documented attorney time and difficulty to deny 20% of medical fees | Counsel: Should receive higher fee based on work performed | WCJ/Board: Counsel documented ~1.5 hours of standard/average work; $46,980.40 for minimal work is unreasonable | Held: No abuse of discretion; record supports WCJ’s findings and denial of medical-fee portion |
Key Cases Cited
- Koszowski v. Workmen’s Compensation Appeal Board, 595 A.2d 697 (Pa. Cmwlth.) (discussing contingent fees and medical-bill percentage awards)
- Raulston v. Workmen’s Compensation Appeal Board, 606 A.2d 668 (Pa. Cmwlth.) (addressing contingent fee awards including medical expenses)
- Wommer v. Workmen’s Compensation Appeal Board, 479 A.2d 661 (Pa. Cmwlth.) (holding percentage-of-compensation fees including medical expenses may be appropriate but must be reasonable)
- Piergalski v. Workmen’s Compensation Appeal Board, 621 A.2d 1069 (Pa. Cmwlth.) (clarifying that 20% of indemnity is per se reasonable but medical-fee percentage requires separate inquiry)
- Elite Carpentry Contractors v. Workmen’s Compensation Appeal Board, 636 A.2d 250 (Pa. Cmwlth.) (deference to WCJ when fee is reasonably related to amount and difficulty of work)
- Righter v. Workers’ Compensation Appeal Board, 141 A.3d 628 (Pa. Cmwlth.) (recently articulating that WCJ must assess intent and reasonableness for medical-fee percentages and perform a quantum meruit analysis)
