Appeal of Thomas Phillips

Petitioner Thomas Phillips appealed a Compensation Appeals Board (CAB) decision denying his request for attorney’s fees in the amount of one-third of the value of workers’ compensation benefits awarded to him, as provided in a contingent fee agreement that he entered into with counsel. Petitioner argued that the CAB erred when it failed to award: (1) the contingent fee in accordance with the fee agreement; or (2) at least a “generous fee” under the circumstances of this case. The CAB ruled that, although contingent fee agreements in workers’ compensation cases were not per se unreasonable, the contingent fee requested in this case, which included one-third of all future benefits, was unreasonable. It stated that it was “not inclined to award fees based upon the hypotheticals counsel posed as to the gross amounts of indemnity or medical benefits the claimant may or may not receive over his lifetime.” The Supreme Court reversed and remanded. "[I]t appears that the CAB did not consider the merits of the petitioner’s proposed future cost estimate, but, rather, rejected the notion that any claimant could ever provide a reasonable estimate of the amount of future benefits. However, a blanket rule that future medical benefits are always speculative and, therefore, cannot be demonstrated, is contrary to our case law." Because the Court remanded to the CAB to make a new determination regarding counsel fees, the Court reserved ruling on the amount of fees to which petitioner was entitled in connection with the prior appeal and the appeal to the Supreme Court. View "Appeal of Thomas Phillips" on Justia Law