JEROME KINSEY v. WORLD PAC ET AL.
(AC 36159)
Lavine, Keller and Sullivan, Js.
Argued April 21—officially released August 12, 2014
(Appeal from workers’ compensation review board.)
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Alan Scott Pickel, for the appellant (petitioner).
Colette S. Griffin, for the appellees (respondents).
Opinion
SULLIVAN, J. The petitioner, Jerome Kinsey, appeals from a decision rendered by the Workers’ Compensation Review Board (board) affirming the decision of the Workers’ Compensation Commissioner (commissioner) ordering the respondents, World PAC and ACE USA, to pay past due benefits and attorney’s feеs. On appeal, the petitioner claims that the board erred in affirming the commissioner’s conclusions that (1) attorney’s fees awarded pursuant to General Statutes
An examination of the board’s record reveals the following relevant facts. In 2000, the petitioner was injured during the course of his employment with World PAC. Since then, the petitioner has been receiving temporary total disability payments. Since 2005, the petitioner has been entitled to cost of living adjustment (COLA) payments.
On December 5, 2011, the petitioner requested an informal hearing before the commissioner for benefits, sanctions, interest, and attorney’s fees, as a result of the respondent’s discontinuance of payments without warning and failure to provide a series of COLA adjustments. This request was triggered by the respondents’ failure to adjust his weekly benefit checks to include the necessary COLA of $7.26 since October, 2011. Also, on November 6, 2011, the petitioner had received his weekly benefit check, and then the payments had stopped for approximately four weeks. The respondents had not filed a form 36 advising the petitioner that they were discontinuing payments or that COLA would not be provided. On December 8, 2011—a date after the petitioner’s request for an informal hearing before the commissioner
Evidence submitted before the commissioner indicated that these stoppages were not the first time that the respondents had failed to timely provide the petitioner with his benefits. For example, on June 22, 2007, the petitioner received a check for $6000 as compensation for benefits owed for the time period of October 1, 2006 through June 5, 2007. On April 2, 2008, the petitioner received a check for $1448.60 as compensation for benefits owed for the time period of February 27, 2008 through April 1, 2008.
Although all past due benefits were paid by Deсember 13, 2011, an informal hearing before the commissioner was held on December 27, 2011, at which the respondents’ counsel offered the petitioner $1000 to settle his claim for attorney’s fees and sanctions. Counsel for the petitioner declined the offer and pressed for $1500. On January 5, 2012, the petitioner requested a preformal hearing for benefits, sanctions, improper discontinuance of benefits, interest, and attorney’s fees. On January 18, 2012, counsel for the petitioner received a check dated January 10, 2012, in the amount of $1500. The check for $1500 did not dissuade the petitioner from his pursuit of sanctions, and on February 17, 2012, the petitioner requested a formal hearing for an ‘‘award of sanctions, interest and attorney’s fees for undue delay.’’
A formal hearing was held before the commissioner for sanctions, interest and attorney’s fees pursuant to
The commissioner made the following factual findings in regard to attorney’s fees that are relevant to this appeal. The commissioner determined $350 an hour to be a reasonable rate due to the ‘‘facile nature of the matter . . . .’’ The commissioner found that the respondents failed to provide requisite notice as to their discontinuance of COLA benefits, and failеd to make this adjustment for a seventy-three day period, but that the petitioner’s counsel had expended no time in the pursuit of these arrearages; rather, all work performed in pursuit of the petitioner’s benefits was performed by counsel’s paralegal. The commissioner determined that ‘‘[t]here is no statutory authority for an award of paralegal fees or charges’’ and that the facts did not support compensating attorney’s fees accrued subsequent to the informal hearing. The petitioner’s counsel, specifically, had expended only 1.5 hours of time in preparation for the informal hearing. The commissioner determined that, accordingly, the respondents’ offer at the informal hearing of $1000 to resolve the issue was reasonable to compensate counsel for his efforts, and that the demand of the petitioner’s counsel of $1500 was unreasonable.
The petitioner appealed to the board from the com-missioner’s decision, pursuant to
We set forth the relevant standards of review before turning to the specific claims raised by the petitioner. ‘‘A party aggrieved by a commissioner’s decision to grant or deny an award may appeal to the board . . . . The board is obliged to hear the аppeal on the record and not retry the facts. . . . [T]he power and duty of determining the facts rests on the commissioner, the trier of facts. . . . The conclusions drawn by him from the facts found must stand unless they result from an incorrect application of the law to the subordinate facts or from an inference illegally or unreasonably drawn from them. . . . Our scope of review of the actions of the board is similarly limited. . . . The role of this court is to determine whether the . . . [board’s] decision results from an incorrect application of the law to the subordinate facts or from an inference illegally or unreasonably drawn from them.’’ (Internal quotation marks omitted.) McFarland v. Dept. of Developmental Services, 115 Conn. App. 306, 310–11, 971 A.2d 853, cert. denied, 293 Conn. 919, 979 A.2d 490 (2009).
I
The petitioner first claims that the board erred in affirming the commissioner’s determination that she lacked the statutory authority to award paralegal fees. Specifically, the petitioner asserts that the commissioner may award paralegal fees pursuant to her authority to award ‘‘reasonable attorney’s fees’’ at her discretion under
The following additional facts are relevant to this claim. The board concluded that the commissioner’s determination that ‘‘[t]here is no statutory authority for an award of paralegal fees or charges’’ was reasonable, and that her decision not to award paralegal fees was a proper exercise of her discretion. In reaching this decision, the board stated: ‘‘We find that the provisions of
The issue presented requires us to determine whether paralegal fees can be awarded under
Our analysis of this claim is guided by our well established principles of statutory construction. ‘‘When construing a statute, [o]ur fundamental objective is to ascertain and give effect to the apparent intent of the legislature. . . . In other words, we seek to determine, in a reasoned manner, the meaning of the statutory language as applied to the facts of [the] case . . . . In seeking to determine that meaning,
‘‘Moreover, [i]n applying these general principles, we are mindful that the [act] indisputably is a remedial statute that should be construed generously to accomplish its purpose. . . . The humanitarian and remedial purposes of the act counsel against an overly narrow construction that unduly limits eligibility for workers’ compensation. . . . Accordingly, [i]n construing workers’ compensation law, we must resolve statutory ambiguities or lacunae in a manner that will further the remedial purpose of the act. . . . [T]he purposes of the act itself are best served by allowing the remedial legislation a reasonable sphere of operation considering those purposes.’’ (Footnote omitted; internal quotation marks omitted.) Vincent v. New Haven, 285 Conn. 778, 784–85, 941 A.2d 932 (2008).
Our analysis begins with the language of the relevant provisions. Section
The petitioner asserts that the plain and unambiguous meaning of ‘‘reasonable attorney’s fees’’ in
The term ‘‘reasonable attorney’s fee’’ is not defined in the act.2 ‘‘Although [the act] does not itself define the phrase, such silence does not necessarily equate to ambiguity. See Mayfield v. Goshen Volunteer Fire Co., 301 Conn. 739, 745, 22 A.3d 1251 (2011). ‘The test to determine ambiguity is whether the statute, when read in context, is susceptible to more than one reasonable interpretation.’ . . . Francis v. Fonfara, [303 Conn. 292, 297, 33 A.3d 185 (2012)]. In the absence of express statutory guidance, we must inquire whether the phrase is a legal term of art that has ‘acquired a peculiar and appropriate meaning in the law’ requiring it to ‘be construed and understood accordingly.’
We agree with the petitioner that the term ‘‘reasonable attorney’s fees’’ has acquired a judicially settled meaning that includes fees accrued by an attorney’s paralegal to aid the attorney in the representation of his client. ‘‘Reasonable’’ is defined as ‘‘[f]air, proper, or moderate under the circumstances. Fit and appropriate to the end in view.’’ Black’s Law Dictionary (9th Ed. 2009). ‘‘Attorney fees’’ is defined as ‘‘[t]he charge to a client for services performed for the client . . . .’’ Id. Accordingly, a strict interpretation of ‘‘reasonable attorney’s fee’’ would be a fair and moderate charge under the circumstances to a client for services performed.
Courts presume that a fair and just charge for services performed may include those fees accrued by the attorney’s paralegal in the service of the client. ‘‘It has frequently been recognized . . . that paralegals are capable of carrying out many tasks, under the supervision of an attorney, that might otherwise be performed
Our own Supreme Court extended the presumption that a reasonable attorney’s fee may include the work of nonattorneys when it considered the term reasonable attorney’s fee in another statute within the act. Namely, in Sorrentino v. All Seasons Services, Inc., 245 Conn. 756, 774–76, 717 A.2d 150 (1998), our Supreme Court reviewed an award of attorney’s fees issued pursuant to
We conclude that an award of ‘‘reasonable attorney’s fees’’ issued pursuant to
II
Second, the petitioner claims that the board erred in upholding the commissioner’s conclusion that sanctions pursuant to
A review of the record indicates that the petitioner requested an informal hearing for ‘‘[benefits], sanctions, improper discontinuance of [benefits], interest [and] attorney’s fees.’’ The petitioner later requested a formal hearing for an ‘‘award of sanctions, interest and attorney’s fees
At the center of this issue is the petitiоner’s failure to list explicitly on his requests for hearings that he was pursuing
‘‘It is fundamental in proper judicial administration that no matter shall be decided unless the parties have fair notice that it will be presented in sufficient time to prepare themselves upon the issue.’’ Osterlund v. State, 129 Conn. 591, 596, 30 A.2d 393 (1943). ‘‘[D]ue рrocess [in the administrative hearing context] requires that the notice given must . . . fairly indicate the legal theory under which such facts are claimed to constitute a violation of the law. . . . [T]he fundamental reason for the requirement of notice is to advise all affected parties of their opportunity to be heard and to be apprised of the relief sought. . . . [N]otice of a hearing is not required to contain an accurate forecast of the precise action which will be taken on the subject matter referred to in the notice. It is adequate if it fairly and sufficiently apprises those who may be affected of the nature and character of the action proposed, so as to make possible intelligent preparation for participation in the hearing . . . .’’ (Citations omitted; internal quotation marks omitted.) Goldstar Medical Services, Inc. v. Dept. of Social Services, 288 Conn. 790, 823–24, 955 A.2d 15 (2008).
‘‘However, since [the] commission is not bound by strict pleading rules . . . a party may be apprised that a given claim is at issue by other means, such as the statements of parties at trial, the evidence
The petitioner asserts that the board’s decision is incorrect because, first, the statutory basis of the hearing is not required to be listed in the hearing notice, and second, the respondents had actual notice that he was pursuing
A review of the record supports the commissioner’s finding that the respondents did not receive notice that the petitioner was pursuing sanctions under
III
Third, the petitioner claims that the board erred in affirming the commissioner’s decision to not award attorney’s fees for time spent by his counsel in the pursuit of sanctions against the respondents. We are not persuaded.
The following additional facts are relevant to our disposition of this claim. The commissioner found that her ‘‘inability to award sanctions against the respondents under the provisions of
Nonetheless, the commissioner declined to award attorney’s fees for counsel’s futile pursuit of sanctions. Instead, the commissioner found that compensation of attorney’s fees accrued after the date of the informal hearing was unreasonable under the circumstances. Specifically, the commissioner found: ‘‘[Counsel’s affidavit] shows only 1.5 hours of time invested by [the petitioner’s] counsel for the period subsequent to the retirement of the debt [December 13, 2011] and the date of the first hearing thereafter [December 27, 2011]. Even at cоunsel’s $495 hourly rate, his fee would have amounted to $742.50; with the addition of the outstanding $26.96 interest, [the petitioner’s] total claim for the December 27, 2011 hearing should not have exceeded $796.46. Accordingly, the respondents’ December 27, 2011 offer of $1000 to settle the dispute was beyond fair and reasonable. Counsel’s insistence on payment of $1500, with full knowledge that he only had 1.5 hours invested in the case was, therefore, unreasonable. For this reason, I decline to award attorney’s fees for any time invested by [the petitioner’s] counsel after the December 27, 2011 informal hearing. The [act] simply does not provide any statutory authority upon which to base an award of attorney’s fees for an attorney’s effort to collect a fee he had not earned.’’ The board affirmed this ruling as a proper exercise of the commissioner’s discretion.
We begin by noting that the commissioner did not conclude that she lacked the statutory authority to award attorney’s fees for counsel’s pursuit of sanctions under
‘‘The decision to award attorney’s fees is within the commissioner’s discretion and dependent on the findings of fact.’’ McFarland v. Dept. of Developmental Services, supra, 115 Conn. App. 323. Contrary to the petitioner’s assertion, the commissioner has the discretion to award attorney’s fees pursuant to
IV
As his final claim, the petitioner asserts that the board erred in deciding that the commissioner was not required to recuse herself from adjudicating the formal hearing. Specifically, the petitioner asserts that, because the commissioner was aware of the contents of settlement discussions, her adjudication of the formal hearing violated due process. We are not persuaded.
The following additional facts are relevant to this claim. During the formal hearing, the parties raised the issue of settlement offers that were discussed at the informal hearing, and the commissioner admitted as evidence a letter from the petitioner’s counsel to the respondents’ counsel acknowledging receipt of a check for $1500. In her written decision, the commissioner noted that at the formal hearing the petitioner’s counsel had questioned whether the settlement offers should have been raised as an issue in regard to the consideration of a fine under
The board affirmed the commissioner’s decision, determining that it was not an abuse of the commissioner’s discretion to admit the evidence of settlement discussions because ‘‘it was certainly relevant as to whether the respondents had offered to pay sanctions at a certain date’’ and that such evidence ‘‘would either support or challenge whether [the petitioner’s] counsel should be compensated for work performed after that date seeking to obtain such an award.’’ Further, the board determined that the commissioner properly did not recuse herself, because, first, ‘‘the recusal of trial commissioners has been disfаvored except for circumstances under which a trial commissioner determined on his or her own that [his or her] impartiality was at issue’’; (internal quotation marks omitted) Martinez-McCord v. State/Judicial Branch, No. 5647, CRB 7-11-4 (August 1, 2012); and here, the record lacked any indication that the commissioner held any bias or favoritism toward any party. Second, the board distinguished Jutkowitz v. Dept. of Health Services, 220 Conn. 86, 96–98, 596 A.2d 374 (1991), relied upon by the petitioner for its holding that it is improper for administrative boards to consider settlement offers in their deliberations. As argued by the respondents, and agreed upon by the board, Jutkowitz is distinguishable from this case, as Jutkowitz concerned a reference to settlement negotiations by the administrative agency’s counsel during his case-in-chief, whereas the present dispute is interlocutory in nature and does not impact the substantive rights of the petitioner to benefits.
The petitioner now asserts that the board’s determination was incorrect, once again relying on Jutkowitz v. Dept. of Health Services, supra, 220 Conn. 96–98. Specifically, the petitioner asserts that, as in Jutkowitz v. Dept. of Health Services, supra, 97–98, where the court found that merely mentioning that a settlement offer had been made, but not specifying its terms, was improper, here, the petitioner states that ‘‘the commissioner specifically cited to and used evidence of settlement discussions in determining the award of attorney’s fees . . . .’’ (Emphasis omitted.)
The petitioner’s argument is unavailing. The ‘‘settlement’’ that the petitioner refers to were attempts to resolve the issue of penalties and attorney’s fees, as all past due arrearages had been paid by the time of the discussions at issue. The petitioner does not challenge the board’s determination that the evidence was relevant and admissible as to the issue of the amount of sanctions and attorney’s fees to be awarded pursuant to
Furthermore, we are not persuaded that the board’s unwillingness to rely on Jutkowitz v. Dept. of Health Services, supra, 220 Conn. 86, was the result of ‘‘an incorrect application of the law to the subordinate facts or from an inference illegally or unreasonably drawn from them.’’ (Internal quotаtion marks omitted.) McFarland v. Dept. of Developmental Services, supra, 115 Conn. App. 311. Accordingly, we decline to disturb the board’s determination as to this claim.
The decision of the Workers’ Compensation Review Board is reversed only as to the issue of an award of paralegal fees and the case is remanded to the board with direction to reverse the decision of the commissioner as to that issue only and to order further proceedings in accordance with law. The decision of the board is affirmed in all other respects.
In this opinion the other judges concurred.
