Kaplan

Plaintiff appeals from judgment in an action for declaratory relief and frames this question: When an employer’s workers’ compensation insurer files a complaint in intervention in the employee’s action against a third party tortfeasor and does no more, and the employee’s attorney is solely responsible for effecting a settlement of the action out of which the insurer is reimbursed for benefits paid, is the employee’s attorney entitled to fees against the insurer for the benefit conferred by his labors? We answer in the affirmative and reverse the judgment.

The following is reflected in an agreed statement of facts submitted to the trial court. Carlos Gonzalez was an employee of Graphic Center, which was insured against worker’s compensation liability by defendant Industrial Indemnity Company (IIC). On May 21, 1974, Gonzalez was involved in an accident and injured within the course and scope of his employment. Gonzalez retained Attorney Howard A. Kaplan, pursuant to a contingent fee agreement, to represent him in claims arising out of the accident. Kaplan filed a legal action against an alleged third party tortfeasor and made a claim against IIC for workers’ compensation…