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Tip of the Week – Attorney Fee Orders

Greetings,

In all of the noise generated by the Castellanos case, the Miles case (below) has been overshadowed.  I’ve received a few emails today about the different orders carriers are now seeing, and it’s mostly as a result of this case. 

Under Miles, a claimant can waive the guideline fee and pay a claimant-paid fee directly to the claimant attorney, as long as the fee is found to be reasonable by the JCC.  It seems that most attorneys are using 25%, at least in Central Florida. So the first order you may see is the JCC approving the Retainer Agreement or Contract of Representation. Not all JCC’s are in agreement that they need to approve the Retainer first before the second order awarding the fees.

Later in the claim you will see another order under one of the following names (all smelling not as sweet*):

1) Order on Uncontested Fees

2) Order on Undisputed Fees

3) Order on Ex-Parte Fees

4) Order on Q-Rule Fees

All of these are the claimant attorney taking money from the claimant, and don’t involve us (directly anyway).  The claimant attorney takes the payout ledger and asserts that all benefits paid after the day they started representing the claimant are “secured” by them, and they take a guideline or greater “Miles” fee from the claimant’s money, usually at settlement.   Defense attorneys and the E/C aren’t even copied on the claimant’s motion because it is only between the claimant and their attorney.  We get the Order because all parties get copies of the JCC Orders in a case.

Basically, you don’t have to do anything with them at all since you aren’t paying it directly.  It will certainly affect the value of settlements since the claimant will be netting less of the total amount in these circumstances.

Thanks,

*Footnote, paraphrased Shakespeare, Romeo and Juliet, “A rose by any other name….”

Martha Miles Case