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S.B. 121 Enrolled

             1     

WORKERS' COMPENSATION - ATTORNEY

             2     
FEES

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Karen Mayne

             6     
House Sponsor: Michael T. Morley

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill modifies the Workers' Compensation Act to address the awarding of attorney
             11      fees.
             12      Highlighted Provisions:
             13          This bill:
             14          .    modifies provisions related to the awarding of attorney fees in adjudications
             15      involving death or disability benefits and medical benefits;
             16          .    modifies the obligation to participate in informal dispute resolution mechanisms;
             17      and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          34A-1-309, as last amended by Laws of Utah 2008, Chapter 382
             26     
             27      Be it enacted by the Legislature of the state of Utah:
             28          Section 1. Section 34A-1-309 is amended to read:
             29           34A-1-309. Attorney fees.


             30          (1) In [all cases coming] a case before the commission in which [attorneys have been]
             31      an attorney is employed, the commission [is vested with] has full power to regulate and fix the
             32      fees of the [attorneys] attorney.
             33          (2) In accordance with Title 63G, Chapter 4, Administrative Procedures Act, an
             34      attorney may file an application for hearing with the Division of Adjudication to [appeal a
             35      decision or final order to the extent it concerns the] obtain an award of attorney fees as
             36      authorized by this section and commission rules.
             37          (3) (a) The commission may award reasonable [attorneys'] attorney fees on a
             38      contingency basis when there is generated:
             39          (i) disability or death benefits; or
             40          (ii) interest on disability or death benefits [are generated].
             41          (b) [Attorney] An employer or its insurance carrier shall pay attorney fees awarded
             42      under Subsection (3)(a) [shall be paid by the employer or its insurance carrier] out of the
             43      award of:
             44          (i) disability or death benefits[,]; or
             45          (ii) interest on disability or death benefits.
             46          (4) (a) [If the commission orders that only medical benefits be paid,] In addition to the
             47      attorney fees ordered under Subsection (3), the commission may award reasonable attorney
             48      fees on a contingency basis for medical benefits ordered paid [if:] in the same percentages for
             49      an award under Subsection (3) provided for in rule made by the commission in accordance
             50      with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if:
             51          (i) medical benefits are not approved by:
             52          (A) the employer or its insurance carrier; or
             53          (B) the Uninsured Employer's Fund created in Section 34A-2-704 ;
             54          (ii) after the employee employs an attorney, medical benefits are paid or ordered to be
             55      paid;
             56          [(i)] (iii) the commission's informal dispute resolution mechanisms [were fully] are
             57      reasonably used by the parties [prior to] before adjudication; and


             58          [(ii) at no time were] (iv) the sum of the following at issue in the adjudication of the
             59      medical benefit claim is less than $4,000:
             60          (A) disability or death benefits [or]; and
             61          (B) interest on disability or death benefits [at issue in the adjudication of the medical
             62      benefit claim].
             63          (b) [Attorneys'] An employer or its insurance carrier shall pay attorney fees awarded
             64      under Subsection [(3)] (4)(a) [shall be paid by the employer or its insurance carrier] in
             65      addition to the payment of medical benefits ordered.


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