Reich, Adell, Crost & Perry v. Workers' Compensation Appeals Board

I concur in the result reached by the majority that in future cases the WCAB cannot reduce an agreed fee which is within the board’s established guidelines without giving the attorney an opportunity to justify same. However, in my opinion, such a fee request should be clothed with a rebuttable presumption of reasonableness and be subject to reduction only after notice to the attorney and his being given an opportunity to further satisfy the board in this respect.

Petitioner, an incorporated law firm, contends that the respondent Workers’ Compensation Appeals Board (WCAB) erred when it (1) reduced the amount of attorneys fees agreed to by the injured worker and his or her attorney, petitioner herein, when the agreed fees were within the WCAB’s own guidelines for setting attorneys fees, and (2) without prior notice awarded petitioner less than the attorneys fee agreed to by petitioner and its clients. 1 There is merit only in the second contention.

I

The issues before this court pertain to the setting of attorneys fees for the attorney for the injured worker in workers’ compensation claims before the WCAB.

*229 Attorneys fees payable to the legal counsel for the injured worker are a lien on the injured’s award; thus, they come out of the injured’s recovery. Labor Code section 4906 provides that “No charge, claim, or agreement for... legal services or disbursements... is enforceable, valid, or binding in excess of a reasonable amount. The appeals board may determine what constitutes such reasonable amount.” The purpose of Labor Code section 4906 is to protect claimants before the appeals board from the exaction of excessive fees.…