Mark Zukowski, et al. v. Anne Arundel County
No. 14
IN THE SUPREME COURT OF MARYLAND
April 24, 2025
Opinion by Eaves, J.
September Term, 2024. Argued: October 1, 2024
Case No. C-02-CV-21-000697
Case No. C-02-CV-21-001642
Fader, C.J.,
Watts,
Booth,
Biran,
Gould,
Eaves,
Killough
JJ.
Opinion by Eaves, J.
Filed: April 24, 2025
I
INTRODUCTION
In this case, we are asked to decide how to determine attorney’s fees under the Maryland Workers’ Compensation Act (“the Act” or “the WCA”), which requires employers to provide compensation to employees who have sustained work-related injuries. The Act, codified as Title 9 of the Labor and Employment Article (“L&E”) (2016 Repl. Vol.), is a robust and complex statutory scheme.1 Thus, it is no surprise that injured workers generally have better odds at securing benefits under the Act when they hire competent legal counsel.2 And typically, excluding matters taken on a pro bono basis, lawyers expect to be compensated for their legal services.
The WCA is unique in that it places restrictions on an attorney’s ability to charge and collect fees. For instance, to collect a fee for a claim filed under the Act, an attorney is required to seek approval from the State Workers’ Compensation Commission (“the Commission”),3 which has the authority to “hear and decide any question concerning legal
As employers, governmental entities in Maryland (State and local alike) are subject to the Act’s provisions.7 But separate and apart from WCA benefits, government employers sometimes offer their employees pension benefits. One such form of pension benefits is disability retirement benefits that are awarded because of an on-the-job injury, typically called “service-connected disability retirement benefits” or “accidental disability retirement benefits” (“ADR benefits”).8 The Act, however, prevents an employee from receiving duplicative ADR benefits and benefits under the Act. In other words, it prevents an employee from being compensated twice for the same injury. The Act does so through its offset provision, which states, in pertinent part, that if a covered employee receives other
The parties in this case debate whether the use of different words—“compensation” in
We granted a writ of certiorari in this case10 to resolve that dispute and answer the following question: Is an attorney’s fee under
II
BACKGROUND
There is little contested in this case. Neither side disputes the occurrence or severity of Petitioners’ on-the-job injuries, nor Petitioners’ entitlement to benefits under the Act or the scope of those benefits. In addition, no one disputes that the County is entitled to a statutory offset under The overarching purpose of the Act is “to protect workers and their families from hardships inflicted by work-related injuries[.]” Gang v. Montgomery County, 464 Md. 270, 278 (2019) (quoting Roberts v. Montgomery County, 436 Md. 591, 603 (2014)). It was enacted to, among other things, “provide workers with compensation for loss of earning The Commission determines whether a claimant is entitled to benefits. By the Act’s offset provision, the General Assembly intended to “preclude [injured workers from] double-dipping into the same pot of comparable benefits.” Spevak v. Montgomery County, 480 Md. 562, 576 (2022) (quoting Newman v. Subsequent Inj. Fund, 311 Md. 721, 728 (1988)), superseded by statute 2023 Md Laws, ch. 410 § 2. That provision states, in pertinent part: Except for benefits subject to an offset under § 29-118 of the State Personnel and Pensions Article, if a statute, charter, ordinance, resolution, regulation, or policy, regardless of whether part of a pension system, provides a benefit to a covered employee of a governmental unit or a quasi-public corporation that is subject to this title under § 9-201(2) of this title or, in case of death, to [I]n a case in which a final award of compensation is made for permanent partial disability, the Commission may approve an attorney’s fee in a total amount not exceeding 20 times the State average weekly wage and computed as follows: Petitioners were corporals in the Anne Arundel County Police Department, and both suffered injuries in the line of duty. On July 3, 2018, Mr. Zukowski suffered a right-knee injury while arresting a suspect who was actively resisting him. This injury necessitated two periods of medical leave during which Mr. Zukowski received full wages in lieu of WCA benefits: July 20, 2018, to October 17, 2018, and November 29, 2018, to February 16, 2019. Mr. Zukowski resumed full-time work in a light-duty capacity on February 17, 2019; however, the County—on its own—awarded Mr. Zukowski ADR benefits beginning October 1, 2019. On November 16, 2018, Mr. Ruggiero also was injured in the line of duty due to a suspect resisting arrest, resulting in severe physical and psychological injuries. The County paid Mr. Ruggiero temporary total disability benefits from November 24, 2018, to July 10, “award of compensation,” which the Commission defines as “the amount of indemnity benefits actually paid or payable to the claimant after applying” “[a]ny credit or offset required by [L&E §§] 9-503(c), 9-609, or 9-610[.]” Petitioners each hired the same attorney (“Counsel”) to represent them before the Commission in their pursuit of WCA benefits.15 After Counsel laid out for the Commission the predicating events for Petitioners’ injuries, their medical complications, and their subsequent retirement, Counsel argued the issue now before this Court: the order of operations between the offset in Petitioners advanced two arguments to the Commission, the first of which was based on statutory construction. According to Petitioners, the General Assembly enacted Petitioners’ second argument was that to interpret The County argued that Petitioners’ arguments were policy determinations better suited for the General Assembly and that the law is clear that attorney’s fees in these The Commission found that Mr. Zukowski was entitled to benefits under the Act. The Commission awarded Mr. Zukowski permanent partial disability benefits for 200 weeks, payable at $365 per week, beginning on February 17, 2019, for a total award of $73,000. The Commission further determined that the County was entitled to a statutory offset of benefits under the Act, Counsel would have been paid $10,858.75 (($365 x 195 weeks x 15%) + ($365 x 5 weeks x 10%)). As to Mr. Ruggiero, the Commission awarded him permanent partial disability payable at $821 per week, for 500 weeks, beginning on July 11, 2019, for a total award of $410,500. The Commission also determined that the County was entitled to a statutory offset of benefits of $1,191.73 per week beginning on April 1, 2020 (the date Mr. Ruggiero began receiving ADR benefits). Because Mr. Ruggiero’s weekly ADR benefits surpassed the weekly rate of $821 under the Act, he was entitled to receive compensation benefits only for the gap period of July 11, 2019, to March 31, 2020, which reduced the total award to $30,787.50. The Commission likewise agreed that Counsel was entitled to a fee only for the gap period, resulting in a total fee of $6,157.50 ($30,787.50 x 20%).18 Had the Commission agreed with Petitioners, Counsel would have been paid $52,133.50 (($821 x 75 weeks x 20%) + ($821 x 120 weeks x 15%) + ($821 x 305 weeks x 10%)). Petitioners filed separate petitions for judicial review in the Circuit Court for Anne Arundel County, which subsequently consolidated both actions. After a hearing, the circuit The circuit court, like the Commission and as the County argued, did not find a distinction between the terms “benefits” and “compensation.” It made no difference to the circuit court that In a reported opinion, the Appellate Court of Maryland affirmed the judgment of the circuit court. In re Zukowski, 260 Md. App. 220, 245 (2024). After discussing The court reasoned that an initial compensation award before applying the statutory offset “does not in and of itself constitute an award of compensation . . . out of which a lien for counsel fees could be satisfied.” Id. (quoting Feissner, 282 Md. at 421). The Appellate Court opined that if the regulation permits the Commission to approve the attorney’s fee up to specific amounts of “the amount due” for an “award of compensation[,]” the attorney’s fee is permitted upon an “award payable” or “actual amount due” to the claimant given the offset. Id. (citing Brunson, 221 Md. App. at 597). The actual amounts due are Furthermore, the Appellate Court rejected the argument that there is a difference between “benefits” and “compensation” because that “disregards the interplay of the statutory schemes and the cases interpreting it.” Id. at 242–43. Applying Petitioners’ interpretation would result in a reduced or complete elimination of the claimant’s compensation award without affecting the attorney’s fee because the claimant—and not the employer—is liable for the attorney’s fee. Id. at 243. Finally, the court explained that Petitioners’ suggestion that the County is responsible for paying the attorney’s fee rather than affecting the claimant’s amount “contradicts the established principle that an award of attorney’s fees is not an ‘add-on’ or ‘double’ benefit that the employer or insurer must pay injured workers on top of the compensation award itself.” Id. (quoting Feissner, 282 Md. at 418). Thus, the Appellate Court affirmed the judgment of the circuit court. Id. at 245. There are only three grounds on which to appeal a decision from the Commission: whether the Commission “(1) justly considered all of the facts about the accidental personal injury, occupational disease, or compensable hernia; (2) exceeded the powers granted to it under this title; or (3) misconstrued the law and facts applicable in the case decided.” Before this Court, the parties advance the same arguments they made before the Commission. Petitioners argue that the offset provision requires attorney’s fees to be calculated before applying the offset. In support of their argument, Petitioners posit that Petitioners also advance the same constitutional argument as before: Interpreting The County likewise reiterates its arguments made to the Commission. The County contends that, under For the reasons discussed below, we agree with the County’s interpretation and will affirm the judgment of the Appellate Court. “The cardinal rule of statutory construction is to ascertain and effectuate” the General Assembly’s purpose and intent when it enacted the statute. Hollingsworth v. Severstal Sparrows Point, LLC, 448 Md. 648, 655 (2016). “We assume that the General Assembly’s intent is ‘expressed in the statutory language’ and therefore begin our analysis with the plain language of the statute.” Spevak, 480 Md. at 571–72 (quoting Moore v. RealPage Util. Mgmt., Inc., 476 Md. 501, 510 (2021)). We begin this task by looking to the normal, plain meaning of the text, “ensur[ing] that no word, clause, sentence or phrase is rendered surplusage, superfluous, meaningless or nugatory.” Id. at 572 (quoting Moore, 476 Md. at 510). And while we focus on the statute’s plain text, we avoid reading “statutory language in a vacuum, nor do we confine strictly our interpretation of a statute’s plain language to the isolated section alone.” Lockshin v. Semsker, 412 Md. 257, 275 (2010). Instead, we analyze the statutory scheme as a whole, considering the “purpose, aim or policy of the The plain language of various provisions of the Act confirms that, at least in this context, the words “benefits” and “compensation” are interchangeable, such that an attorney is paid if—and only if—there is any award leftover after Turning now to the main provision at issue, A. The Statutory Scheme
1. The Act’s purpose and the Commission’s authority
2. Attorney’s fees under L&E § 9-731
C. Procedural History
1. The Commission
2. The Circuit Court for Anne Arundel County
3. The Appellate Court of Maryland
III
STANDARD OF REVIEW
IV
ANALYSIS
A. L&E § 9-610’s Offset Applies Before Calculating an Attorney’s Fees
Petitioners’ interpretation also presents myriad problems. Under Petitioners’ theory,
Second, nowhere in the Act is the Commission authorized to make a separate award for attorney‘s fees. Attorneys are granted a statutory lien against the single award of
Third, even if, as Petitioners contend, the Commission did have the authority to enter multiple awards, Petitioners do not address the elephant in the room: From where are those funds pulled? The plain language of
Thus, Petitioners’ interpretation is rife with problems that conflict with other provisions of the Act and produce untenable results. We find support for our plain language analysis in the cases relied upon by the Appellate Court below: Feissner and Brunson.
In Feissner, this Court addressed whether an attorney for a claimant in a workers’ compensation case could collect attorney‘s fees from the claimant‘s public employer even though ADR benefits had offset the entire compensation award. 282 Md. at 414. In Feissner, like this case, the attorney represented two claimants in unrelated workers’ compensation proceedings. Id. at 415. In both cases, the Commission issued total permanent disability findings and ordered payment of compensation, as well as attorney‘s fees. Id. The employer invoked the Act‘s offset provision, arguing that it was liable for neither the awarded compensation nor the attorney‘s fees because the claimants’ ADR
On appeal, this Court held that
While the Commission, pursuant to the dictates of [
L&E § 9-610 ], must initially make a determination as to the amount and nature of work[ers‘] compensation benefits to which a claimant would be entitled in the absence of [ADR benefits], this evaluation does not in and of itself constitute an award of compensation within the contemplation of [L&E § 9-731 ] and out of which a lien for counsel fees could be satisfied.
Feissner, thus, confirms our plain-language interpretation above, which concludes that
In Brunson, the Appellate Court relied on our opinion in Feissner to address whether counsel had the right to attorney‘s fees when: “(1) an initial award for temporary total disability [was] rescinded; and (2) a subsequent award for permanent partial disability [did
After a new hearing on remand, the Commission ordered a permanent partial disability compensation award of $7,100 and granted the employer credit for its original payment made pursuant to the now-annulled awards for temporary total disability, which offset the employer‘s obligation entirely. Id. at 588–89. The Commission denied the attorney‘s fee request. Id. at 589.
On appeal, with respect to the first award for temporary total disability, the Appellate Court, relying on Feissner, held that because the initial award “was rescinded
Brunson‘s second question presents quite a different scenario: Whether money—paid under the Act pursuant to a later-annulled Commission order—used to completely offset a future Commission award extinguishes an attorney‘s lien under the latter award. Because we are not presented with that discrete set of facts in this case, we express no opinion as to the Appellate Court‘s rationale or holding with respect to the second question presented in Brunson.
Petitioners take issue with Brunson because it did not involve a statutory offset under
B. L&E § 9-610 is Constitutional
Lastly, Petitioners argue that it is unconstitutional for this Court to interpret the statute in a way that would deprive attorneys of their property, i.e., their time. Specifically, Petitioners argue that “it is unconstitutional to take away [Counsel]‘s time” by canceling her attorney‘s fees “without due process of law.” Our interpretation of the various provisions we have discussed, however, does not offend the Constitution of the United States or of this State.29 See Elsberry v. Stanley Martin Cos., LLC, 482 Md. 159, 194 (2022) (“This Court generally construes statutory language in a way that avoids violating the Constitution.“).
”
An attorney makes a voluntary decision about whether to represent a client. There are different methods of compensation that attorneys use, such as an hourly rate, a contingency fee from a settlement, or, as here, a specified percentage from an award of compensation. In any sort of contingency arrangement, the attorney takes a risk by representing a client who might not recover anything after a lawsuit. This is standard practice in the legal field, and the law does not deem the practice unconstitutional.30 By signing a retainer agreement with Petitioners, Counsel agreed to accept a specified percentage of any amount Petitioners might be awarded from the Commission. Counsel was generally aware of how attorney‘s fees were calculated and obtained under COMAR 14.09.04.03 and
V
CONCLUSION
We hold, consistent with our longstanding principles of statutory construction, that there is no distinction between the term “benefits” under
JUDGMENT OF THE APPELLATE COURT OF MARYLAND AFFIRMED. COSTS TO BE PAID BY PETITIONERS.
The correction notice(s) for this opinion(s) can be found here:
https://mdcourts.gov/sites/default/files/import/appellate/correctionnotices/coa/14a24cn.pdf
https://mdcourts.gov/sites/default/files/import/appellate/correctionnotices/coa/14a24cn2.pdf
Notes
[I]n a case in which a final award of compensation is made for permanent partial disability, the Commission may approve an attorney’s fee in a total amount not to exceed 60 times the State average weekly wage and computed as follows:
- Up to 20 percent of the first $50,000 of the total award of compensation;
- Up to 15 percent of the next $50,000 of the total award of compensation; and
- Up to 5 percent of the total award of compensation in excess of $100,000.
In Comptroller of Maryland v. FC-GEN Operations Investments LLC, this Court clarified that it utilizes a sliding scale approach in determining whether it affords deference to an agency’s interpretation of a statute or regulation that the agency administers. 482 Md. 343, 363 (2022). We look to a number of factors, such as whether: (1) “the [agency’s] interpretation resulted from a process of ‘reasoned elaboration’ by the agency,” (2) “the agency has applied that interpretation consistently over time,” and (3) “the interpretation is the product of contested adversarial proceedings or formal rule making.” Id. (quoting Md. Dep’t of the Env’t v. Cnty. Comm’rs of Carroll Cnty., 465 Md. 169, 203–04 (2019)). None of the factors we mentioned in FC-GEN is evident from this record, and the County has not explicitly argued as such. Thus, we apply no deference in this case.
Id. at 601. Thus, the Appellate Court reached a similar holding, again relying on Feissner, for the second question. We denied certiorari review in Brunson on the grounds that the petition was untimely. See Brunson v. Univ. of Md. Med. Sys. Corp., COA-PET-0120-2015 (July 27, 2015) (“[T]he petition [is] . . . dismissed on the grounds of lateness.“); see also 443 Md. 735 (2015). Feissner‘s and Brunson‘s first question have a key element in common: Either because of an award of ADR benefits or because an initial Commission award was later annulled, no money under the Act was payable to the claimant. See Feissner, 282 Md. at 418–19; Brunson, 221 Md. App. at 597.there was no actual amount due to Ms. Brunson, given the offset for the overpayment made pursuant to the initial award of temporary total disability. Accordingly, similar to Feissner, where there was no actual amount due, given an offset due to another payment, there was no fund to which the attorney‘s fee could attach. Accordingly, the Commission properly declined to award attorney‘s fees for permanent partial disability.
