C & P Telephone Co. v. District of Columbia Department of Employment ServicesC & P Telephone Co. v. District of Columbia Department of Employment Services
Petitioner, C & P Telephone Company, seeks review of a decision of the District of Columbia Department of Employment Services that petitioner must pay intervenor Pa-trida Robertson’s attorney’s fees under the District of Columbia Workers’ Compensation Act,
I.
On November 7, 1982, intervenor Patricia Robertson injured her left knee in the course of her employment with petitioner C & P Telephone Company. After intervenor timely filed a claim under the District of Columbia Workers’ Compensation Act,
see
On May 2, 1985, intervenor, through counsel, requested that the agency schedule an informal conference based on the March 27, 1985, medical report of Dr. Neil Green, who concluded that intervenor had suffered a ten percent permanent partial disability in her left leg. Petitioner received the doctor’s report on May 15, 1985. An informal conference was held on June 11,1985.
1
Thereafter, on July 16, 1985, the claims examiner issued a memorandum of informal conference. The memorandum stated that the claims examiner had concluded that intervenor was entitled
On July 25, 1985, intervenor’s attorney requested that the agency approve attorney’s fees, attaching a listing of legal services provided from April 28, 1983 through July 11, 1985, showing a total of 22.50 hours at $100 an hour, and the cost of the medical services of Dr. Green. The agency ultimately assessed against petitioner the total amount sought “subject to [a maximum of] 20 percent of actual benefits secured by counsel.”
Petitioner maintained, however, that it was not liable for attorney’s fees under either
The Hearing Examiner issued a compensation order on February 12, 1988, finding that prior to the informal conference petitioner stated that it accepted responsibility for the injury but not the disability rating, and that petitioner made payment to intervenor on July 22, 1985, pursuant to the informal conference recommendation.
3
Significantly, the Examiner rejected petitioner’s argument that attorney’s fees were not due because its payment of medical expenses was the payment of compensation, making § 36 — 330(b) applicable. The Hearing Examiner appeared to reject this argument because petitioner had failed to demonstrate why it did not obtain an examination by an independent doctor between May 15, 1985, when it received the disability rating, and June 11, 1985, the date of the informal conference. Apparently, for this reason, the Examiner did not accept petitioner’s position that it did not refute liability, but instead had exercised its right to an independent medical examination. Finally, the Examiner determined that
Petitioner appealed, and the Director affirmed. The Director noted that petitioner had not paid any compensation for interve-nor’s permanent partial disability prior to the informal conference or at the conference, and that although petitioner did not file a Notice of Controversion, “the record indicates that petitioner did not acknowledge liability for compensation, until the claims examiner issued the recommended decision.” In the Director’s view, “[t]he fact that employer never filed a notice [of controversion] is not controlling, as under
II.
Petitioner contends that the agency erred as a matter of law in ruling that
Under the D.C. Workers’ Compensation Act, a person claiming compensation may be entitled to recover attorney’s fees in only two situations: first, if the employer refuses to pay “any compensation” for a work-related injury within thirty days of receiving written notice from the Mayor of “a claim for compensation,” and the claimant consequently uses the services of an attorney to prosecute successfully his or her claim,
In
Savannah Mach. & Shipyard Co. v. Director, Office of Workers’ Compensation Programs,
In an earlier decision by the Fifth Circuit, where the employer had also commenced paying compensation benefits immediately after the employee had filed a claim for statutory benefits but at a hearing had contested the employee’s right to receive medical expenses, the court observed that:
Section 928(a) provides an incentive for employers to pay claims rather than contest them. That incentive consists of assessing attorney’s fees against the employer when the employer denies a legitimate claim and the employee uses the services of an attorney to obtain his [or her] statutory benefits. This incentive also applies equally to monetary compensation and medical benefits. It is best promoted by considering medical services to be a component of the term “compensation” inSection 928(a) .
Oilfield Safety & Mach. Specialties, Inc. v. Harmon Unlimited, Inc.,
The D.C. Workers’ Compensation Act defines “compensation” to mean “the money allowance payable to an employee or to his dependents as provided for in this chapter, and includes funeral benefits provided herein.”
Of course, because the decisions of the Fifth Circuit on which petitioner relies were decided after the Council of the District of Columbia enacted the local statute, the Council cannot be deemed to have adopted the interpretation that “compensation” includes medical treatment.
See McReady v. Dep’t of Consumer & Regulatory Affairs,
The agency’s interpretation that
By its plain terms, moreover,
In addition, the agency erred as a matter of law in ruling that
As explained by the Ninth Circuit in
National Steel & Shipbuilding Co. v. United States Dep’t of Labor, Office of Workers’ Compensation Programs, supra
note 7,
The purpose of the statute [33 U.S.C. § 928(b) ] is to authorize the assessment of legal fees against employers in cases where the existence or extent of liability is controverted and the employee-claimant succeeds in establishing liability or obtaining increased compensation in formal proceedings in which he or she is presented by counsel, [citations omitted] The statute provides methods by which the employer can limit its liability for fees through agreeing to [an] independent medical evaluation of the employee or by tendering the amounts it believes are due. [citations omitted]
See Todd Shipyards v. Director, Office of Workers’ Compensation Programs,
Accordingly, we reverse the decision of the Director affirming the assessment of interve-nor’s attorney’s fees pursuant to
Notes
. The agency sent petitioner a notice of informal conference, referencing the medical report, on May 8, 1985. A second notice was sent on May 14, 1985, scheduling the informal conference for June 11, 1985.
. Ms. Hunter was a staff supervisor in petitioner's legal office that handles workers’ compensation cases. She testified that she had received the claims examiner's recommendation on July 18, 1985, and that although she had not yet received an evaluation from the independent medical examiner, she decided to pay the compensation recommended by the claims examiner and sent a check on July 23, 1985, fewer than fourteen days after she had received the recommendation. On cross-examination, Ms. Hunter acknowledged that it was common for a claimant and an employer to engage the services of an independent examiner for disability ratings. The significance of Ms. Hunter’s testimony is limited, however, because the Hearing Examiner did not find Ms. Hunter’s testimony "credible.”
. The compensation order incorrectly stated that the informal conference recommendation was issued on July 18, 1985. The record indicates that the recommendation was issued on July 16, 1985, and received by petitioner on July 18, 1985.
.
If the employer or carrier declines to pay any compensation on or before the 30th day after receiving written notice from the Mayor that a claim for compensation has been filed, on the grounds that there is no liability for compensation within the provisions of this chapter, and the person seeking benefits thereafter utilizes the services of an attomey-at-law in the successful prosecution of his claim, there shall be awarded, in addition to the award of compensation, in a compensation order, a reasonable attorney’s fee against the employer or carrier in an amount approved by the Mayor ... which shall be paid ... in a lump sum after the compensation order becomes final.
.
If the employer or carrier pays or tenders ' payment of compensation without an award pursuant to this chapter, and thereafter a controversy develops over the amount of additional compensation, if any, to which the employee may be entitled, the Mayor shall recommend in writing a disposition of the controversy. If the employer or carrier refuse to accept such written recommendation, within 14 days after its receipt by them, they shall pay or tender to the employee in writing the additional compensation, if any, to which they believe the employee is entitled. If the employee refuses to accept such payment or tender of compensation and thereafter utilizes the services of any attomey-at-law, and if the compensation thereafter awarded is greater than the amount paid or tendered by the employer or carrier, a reasonable attorney’s fee based solely on the difference between the amount awarded and the amount tendered or paid shall be awarded in addition to the amount of compensation. Theforegoing sentence shall not apply if the controversy relates to degree or length of disability, and if the employer or carrier offers to submit the case for evaluation by physicians employed or selected by the Mayor, as authorized in § 36-307(e) , and offers to tender an amount of compensation based upon the degree or length of disability found by the independent medical report at such time as an evaluation of disability can be made. If the claimant is successful in review proceedings before the Mayor or court in any such case, an award may be made in favor of the claimant and against the employer or carrier for a reasonable attorney’s fee for claimant’s counsel in accordance with the above provisions. In all other cases any claim for legal services shall not be assessed against the employer or carrier.
. In another context, however, the court has recognized that for some purposes there is a distinction between an employer’s liability for monetary compensation and for medical treatment.
See Santos v. District of Columbia Dep’t of Employment Servs.,
. The two cases
cited
—National
Steel & Shipbuilding Co. v. United States Dep’t of Labor, Office of Workers’ Compensation Programs,
. Petitioner maintains that
Baker
has been implicitly overruled in
Savannah Mach. & Shipyard Co. v. Director, Office of Workers’ Compensation Programs, supra,
. The federal statute,
Notwithstanding the provisions of subsection (a) of this section, a claim for compensation for death or disability due to an occupational disease which does not immediately result in such death or disability shall be timely if filed within two years after the employee or claimant becomes aware, or in the exercise of reasonable diligence or by reason of medical advice should have been aware, of the relationship between the employment, the disease, and the death or disability, or within one year of the date of the last payment of compensation, whichever is later.
. See
7 DCMR § 210.2 (1986) (‘‘[i]f the right to compensation is disputed, an employer shall file [a] Notice of Controversion ... on or before the fourteenth (14th) working day after the employer has knowledge of the injury and its relationship to the employment";
. During closing argument at the hearing, counsel for intervenor stated that "at the informal conference on June 11, 1985, [petitioner] disputed their liability. They refused to pay unless a third doctor was brought into the case.” We do not view this to be inconsistent with petitioner's position that it would pay according to the disability found by the independent doctor appointed by the Mayor.
. The regulations are silent on the subject.
See also
.We need not and do not decide whether petitioner’s request for an independent medical examination tolled the time within which petitioner had to pay or tender compensation to intervenor in order to avoid being assessed for her attorney’s fees.