DocketNumber: 0605262; A148774
Citation Numbers: 257 Or. App. 188, 306 P.3d 726
Judges: Nakamoto, Schuman, Wollheim
Filed Date: 6/19/2013
Status: Precedential
Modified Date: 7/24/2022
Claimant filed this petition for judicial review from a Workers’ Compensation Board (the board) order on remand that awarded claimant a penalty for employer’s untimely payment of a lump sum award of permanent partial disability, but reduced claimant’s requested insurer-paid attorney fees under ORS 656.262(11)(a)
Claimant suffered a compensable occupational disease. Employer issued a notice of closure awarding claimant 54 percent scheduled permanent partial disability (PPD) for each hand. Claimant requested reconsideration, and an order on reconsideration increased the award of PPD to 82 percent for each hand. On July 25,2006, before the order had become final, claimant waived his right to appeal the order and sought a lump sum payment of the award pursuant
Claimant continued to pursue the hearing and sought a determination that employer had unreasonably delayed payment of compensation and that, as a result, claimant was entitled to a penalty and attorney fees, pursuant to ORS 656.262(11)(a) and ORS 656.382(1). The ALJ and the board rejected claimant’s contention, concluding that, because the order on reconsideration had not yet become final at the time of claimant’s request for a lump sum payment, and because employer had not waived its right to appeal the award, ORS 656.230(1) and OAR 436-060-0060 (2006) did not require employer to respond within 14 days.
Before this court, claimant sought attorney fees for having prevailed on judicial review. We held, by unpublished order, that claimant had prevailed on appeal. We made a conditional award of $8,236.25 in appellate attorney fees for services on review. We stated, further, that, if claimant finally prevailed on remand through a determination that employer acted unreasonably in resisting payment of compensation, “ORS 656.388 allows him to request attorney fees for services before every prior forum, as authorized by ORS 656.382.” We conditioned the actual award of attorney fees for services on review on the ultimate outcome of the case on remand. ORAP 13.10(3).
“IT IS HEREBY ORDERED that claimant is awarded costs and disbursements in the amount of $448.33 and, contingent on the outcome of the remand, is entitled to an award of appellate attorney fees in the amount of $8,236.25.”
The board rejected claimant’s contention that employer had unreasonably refused to pay claimant’s award in a lump sum. The board reasoned that, before this court’s prior opinion in this case, Cayton, 231 Or App at 650 (holding that the provision in ORS 656.230(1) for a waiver of the right to appeal the adequacy of the award does not apply to employers), employer had a legitimate doubt as to its obligation to make tbe lump sum payment before the 30-day appeal period had expired under ORS 656.268(6)(g). Thus, the board concluded, employer’s refusal to make the lump sum award within 14 days of claimant’s request was not unreasonable.
The board concluded, however, that employer’s failure, within 14 days of claimant’s request, to either submit claimant’s lump sum application to the director or to pay the lump sum was an unreasonable delay in the payment of compensation, ORS 656.262(11), reasoning that employer could have had no legitimate doubt that, if it disagreed with claimant’s request, employer was required to refer claimant’s request for lump sum payment to the director by August 8, 2006, within 14 days of claimant’s request, as required by ORS 656.230(1). Employer never referred tbe matter to the director. Instead, employer waited until August 30, eight days after claimant filed the request for hearing, to pay the full amount of claimant’s award. For employer’s unreasonable conduct in failing to act, the board assessed a penalty under ORS 656.262(11) equal to 10 percent of the “amounts then due” at the time of the unreasonable conduct, claimant’s unpaid award as of August 8, 2006.
Claimant’s attorney sought reconsideration of the board’s order on remand, requesting additional attorney fees as had been ordered by this court, and additional attorney fees under ORS 656.382(1) and ORS 656.388(1), for services provided at the hearing level and before the board on review and on remand. As support, claimant submitted to the board this court’s order awarding attorney fees on appeal contingent on the outcome of the case on remand, and specifically cited this court’s statement that, if claimant finally prevailed on remand, ORS 656.388(1) “allows him the request attorney fees for services provided before every prior forum as authorized by ORS 656.382.”
The board rejected claimant’s contention that he was entitled to an award of attorney fees above $1,500. Emphasizing the phrase “as authorized by ORS 656.382,” the board reasoned that this court’s order only allowed claimant to request fees as authorized by that statute, but did not require an award of fees if the board determined that attorney fees were not authorized by the statute. The board further concluded that claimant is not entitled to attorney fees under ORS 656.382(1) for services in obtaining a penalty or attorney fees, and that the board lacked authority to award additional fees to claimant’s attorney.
On judicial review, in his third and fourth assignments of error, claimant challenges the board’s determination that employer did not unreasonably refuse to pay compensation, and asserts for that reason that there are really two bases for an award of attorney fees — a refusal and a delay — thereby justifying an additional attorney fees award. We reject that contention. It is undisputed that employer did
Claimant contends in his first assignment that because he finally prevailed, the board was required to award claimant appellate attorney fees, as well as attorney fees for services at every level of review pursuant to ORS 656.382(1) and ORS 656.388(1). Claimant asserts that the board has misinterpreted our order to only permit claimant to request fees under ORS 656.382(1), but not to require the board to actually award fees.
We agree with claimant that he is entitled to appellate attorney fees for services provided on review in our prior opinion in Cayton. As noted, we ordered an award of appellate attorney fees of $8,236.25, contingent on claimant prevailing on remand. The June 4, 2010, appellate judgment, which is part of this record, states: “Appellate attorney fees in the amount of $8,236.25 awarded contingent on the outcome on remand.” In light of claimant having finally prevailed before the board on remand, this court’s order requires an award to claimant of appellate attorney fees of $8,236.25 for services on review.
However, as our order expressly stated, it only related to attorney fees for services performed before this court. Although we stated in the order awarding attorney fees that claimant could request attorney fees for services performed at other levels, that statement did not require the board to award attorney fees for services at all other levels.
We further conclude that the board correctly held that no additional attorney fees are authorized. As noted, the board assessed a 10 percent penalty based on employer’s delay in payment of claimant’s benefits. In addition, employer was ordered to pay a penalty-related attorney fee of $1,500,
Furthermore, contrary to claimant’s contention, claimant’s ultimate success on remand in securing the assessment of a penalty and attorney fees under ORS 656.262(11) does not mandate an attorney fees award for services at all levels of review under ORS 656.382(1). “Compensation” includes “all benefits, including medical services, provided for a compensable injury to a subject worker or the worker’s beneficiaries by an insurer or self-insured employer pursuant to this chapter.” ORS 656.005(8). It is well settled that penalties and attorney fees are not “compensation,” and that attorney fees are not awarded for prevailing on an issue of penalties and attorney fees. Saxton v. SAIF, 80 Or App 631, 633, 723 P2d 355, rev den, 302 Or 159 (1986); Dotson v. Bohemia, Inc., 80 Or App 233, 236, 720 P2d 1345, rev den, 302 Or 35 (1986); Bahler v. Mail-Well Envelope Co., 60 Or App 90, 93, 652 P2d 875 (1982). Accordingly, claimant’s success in obtaining a penalty and attorney fees under ORS 656.262(11) for employer’s delay in payment of compensation does not mandate an award of attorney fees under ORS 656.382(1).
Remanded for an award of $8,236.25 in appellate attorney fees for services on judicial review and for reconsideration of penalty-related attorney fees under ORS 656.262(11); otherwise affirmed.
ORS 656.262(11)(a) provides, in part:
“If the insurer or self-insured employer unreasonably delays or unreasonably refuses to pay compensation, or unreasonably delays acceptance or denial of a claim, the insurer or self-insured employer shall be liable for an additional amount up to 25 percent of the amounts then due plus any attorney fees assessed under this section.”
ORS 656.382(1) provides:
“If an insurer or self-insured employer refuses to pay compensation due under an order of an Administrative Law Judge, board or court, or otherwise unreasonably resists the payment of compensation, except as provided in ORS 656.385, the employer or insurer shall pay to the claimant or the attorney of the claimant a reasonable attorney fees ***.”
ORS 656.230(1) was amended in 2007. Or Laws 2007, ch 270, § 1. Throughout this opinion, our references are to the 2005 version of the statute, which provided, in part:
“(1) Where a worker has been awarded compensation for permanent partial disability, and the award has become final by operation of law or waiver of the right to appeal its adequacy, the insurer shall upon the worker’s application pay all or any part of the remaining unpaid award to the worker in a lump sum, unless the insurer disagrees with payment, in which case the insurer, within 14 days, will refer the matter to the Director of the Department of Consumer and Business Services to determine whether all or part of the lump sum should be paid.”
OAR 436-060-0060 (2006) provided, in part:
“(1) Under ORS 656.230, *** the insurer or director may approve an application of the worker for lump sum payment when the order has become final by operation of law or the worker has waived their right to appeal the adequacy of the award. The lump sum application shall be in the form and format [Form 1174] provided by the director.
«H: * sH * s}:
“(4) If the insurer agrees with the worker’s request for lump sum payment of a permanent partial disability award * * *, they must make the lump sum payment within 14 days of receipt of the signed application.
“(5) If the insurer disagrees with the worker’s request for lump sum payment of a permanent partial disability award * * *, the insurer must submit the lump sum application with the reason for disagreement to the director within 14 days of receipt of the signed application.”
ORAP 13.10(3) provides:
“When a party prevails * * * on review and the case is remanded for further proceeding in which the party who ultimately will prevail remains to be determined, the prevailing party * * * on review may petition the appellate court for attorney fees * * *. If the appellate court determines an amount of attorney fees under this subsection, it may condition the actual award of attorney fees on the ultimate outcome of the case.”