Hise v. City of Albuquerque, 22,503.
Decision Date | 05 September 2002 |
Docket Number | No. 22,503.,22,503. |
Citation | 2003 NMCA 15,61 P.3d 842,133 N.M. 133 |
Parties | Blanca B. HISE, Worker-Appellant, v. CITY OF ALBUQUERQUE, Employer-Appellee. |
Court | Court of Appeals of New Mexico |
Gerald A. Hanrahan, Albuquerque, for Appellant.
Timothy S. Hale, Myra F. Moldenhauer, Riley, Shane & Hale, P.A., Albuquerque, for Appellee.
{1} This case requires us to decide whether the fee shifting provision of NMSA 1978, § 52-1-54(F)(4) ( ), applies to a stipulated compensation order pursuant to which a worker recovers benefits in excess of an earlier offer of judgment that was rejected by the employer. We hold that Section 52-1-54(F)(4) applies to the stipulated compensation order entered by agreement of the parties and that pursuant to Section 52-1-54(F)(4), the employer is responsible for paying one hundred percent of the worker's attorney's fees.
{2} Blanca B. Hise (Worker) was employed by the City of Albuquerque (Employer). On October 30, 1997, Worker sustained injuries to her spine as the result of a motor vehicle accident that occurred as she was driving to a meeting at the mayor's office. Worker filed a workers' compensation complaint on January 6, 1999. Worker was represented by her current counsel. In March 2001, the parties agreed to a stipulated compensation order.
{3} With respect to attorney's fees, the stipulated compensation order provided as follows:
Worker's attorney is entitled to a reasonable attorney fee for his services to Worker herein. The amount of the fee, and the responsibility for payment (whether 50% by each party or 100% by one party) shall be determined by the WCJ after a hearing.
{4} Worker filed an application for attorney's fees. Worker requested an award of $12,500, plus tax, with one hundred percent of the award to be paid by Employer. Employer filed an objection to the application. Employer argued that the amount of fees requested were excessive and that because the parties had agreed to settle, Employer was not obligated to assume responsibility for one hundred percent of Worker's attorney's fees. Following a hearing on Worker's application for attorney's fees, the Worker' Compensation Judge (the WCJ) filed his decision, which included the following findings:
{5} The WCJ made the following conclusions of law:
{6} Worker filed a timely notice of appeal. We have jurisdiction pursuant to NMSA 1978, § 52-5-8 ( ).
{7} This appeal turns upon the following statute:
{8} Although we review the WCJ's decision awarding attorney's fees for an abuse of discretion, Cordova v. Taos Ski Valley, Inc., 121 N.M. 258, 263, 910 P.2d 334, 339 (Ct.App.1995), New Mexico Right to Choose/NARAL v. Johnson, 1999-NMSC-028, ¶ 7, 127 N.M. 654, 986 P.2d 450 (citations omitted).
{9} We conclude that the WCJ's conclusion of law No. 3 reflects an erroneous interpretation of Section 52-1-54(F)(4). We recognize that there is support for the WCJ's approach. See 12 Charles Alan Wright, Arthur R. Miller, Richard L. Marcus., Federal Practice & Procedure § 3006 (2002) ( ). However, in our view, the phrase "the amount awarded by the compensation order" is neutral as to how the compensation order came to be entered, and is equally susceptible of application to stipulated compensation orders and to compensation orders entered after an adversarial hearing before a WCJ. Section 52-1-54(F)(4). We have previously recognized that Section 52-1-54(F) was "intended to encourage both sides in a workers' compensation proceedings to make and accept reasonable offers of judgment by providing...
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