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H0549aa.....................................by COMMERCE AND HUMAN RESOURCES WORKER'S COMPENSATION - Amends existing law to further clarify attorney's fees when claims are made against a third party in worker's compensation cases. 02/10 House intro - 1st rdg - to printing 02/11 Rpt prt - to Com/HuRes 03/02 Rpt out - to Gen Ord 03/03 Rpt out amen - to engros 03/06 Rpt engros - 1st rdg - to 2nd rdg as amen 03/07 2nd rdg - to 3rd rdg as amen 03/13 3rd rdg as amen - PASSED - 43-24-3 AYES -- Alltus, Bell, Black, Bruneel, Callister, Campbell, Cheirrett, Clark, Crow, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Hadley, Hammond, Hansen(23), Hornbeck, Kempton, Kendell, Lake, Linford, Loertscher, Meyer, Montgomery, Mortensen, Moyle, Pearce, Pomeroy, Ridinger, Sali, Schaefer, Smylie, Stevenson, Stone, Taylor, Tilman, Wheeler, Wood, Zimmermann, Mr Speaker NAYS -- Barraclough, Bieter, Boe, Chase, Cuddy, Hansen(29), Henbest, Jaquet, Jones, Judd, Kellogg, Kunz, Mader, Marley, McKague, Pischner, Reynolds, Ringo, Robison, Sellman, Shepherd, Smith, Stoicheff, Trail Absent and excused -- Barrett, Gould, Moss Floor Sponsor - Lake Title apvd - to Senate 03/14 Senate intro - 1st rdg as amen - to Com/HuRes 03/17 Rpt out - rec d/p - to 2nd rdg as amen 03/20 2nd rdg - to 3rd rdg as amen 03/23 3rd rdg as amen - PASSED - 32-1-2 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Geddes, Hawkins, Ingram, Ipsen, Keough, Lee, McLaughlin, Noh, Parry, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams NAYS--Whitworth Absent and excused--Frasure, King-Barrutia Floor Sponsor - Davis Title apvd - to House 03/24 To enrol 03/27 Rpt enrol - Sp signed 03/28 Pres signed 03/29 To Governor 03/30 Governor signed Session Law Chapter 119 Effective: 07/01/00
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 549, As Amended BY COMMERCE AND HUMAN RESOURCES COMMITTEE 1 AN ACT 2 RELATING TO WORKER'S COMPENSATION; AMENDING SECTION 72-223, IDAHO CODE, TO 3 FURTHER CLARIFY ATTORNEY FEE OBLIGATIONS WHEN CLAIMS ARE MADE AGAINST A 4 THIRD PARTY; AND PROVIDING AN EFFECTIVE DATE. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 72-223, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 72-223. THIRD PARTY LIABILITY. (1) The right to compensation under this 9 law shall not be affected by the fact that the injury, occupational disease or 10 death is caused under circumstances creating in some person other than the 11 employer a legal liability to pay damages therefor, such person so liable 12 being referred to as the third party. Such third party shall not include those 13 employers described in section 72-216, Idaho Code, having under them contrac- 14 tors or subcontractors who have in fact complied with the provisions of sec- 15 tion 72-301, Idaho Code; nor include the owner or lessee of premises, or other 16 person who is virtually the proprietor or operator of the business there car- 17 ried on, but who, by reason of there being an independent contractor or for 18 any other reason, is not the direct employer of the workmen there employed. 19 (2) Action may be instituted against such third party by the employee, or 20 in event compensation has been claimed and awarded, by the employee and 21 employer jointly, in the employee's name, or, if the employee refuses to par- 22 ticipate in such action, by the employer in the employee's name. 23 (3) If compensation has been claimed and awarded, the employer having 24 paid such compensation or having become liable therefor, shall be subrogated 25 to the rights of the employee, to recover against such third party to the 26 extent of the employer's compensation liability. 27 (4) On any recovery by the employee against a third party, the employer28 shall pay or have deducted from his subrogated portion thereof, a proportion-29 ate share of the costs and attorney's fees incurred by the employee in obtain-30 ing such recoveryUnless otherwise agreed, upon any recovery by the employee 31 against the third party, the employer shall pay or have deducted from its sub- 32 rogated portion thereof, a proportionate share of the costs and attorney's 33 fees incurred by the employee in obtaining such recovery unless one (1) or 34 more of the following circumstances exist: 35 (a) If prior to the date of a written retention agreement between the 36 employee and an attorney, the employer has reached an agreement with the 37 third party, in writing, acknowledging the third party's obligation to pay 38 the subrogated interest; 39 (b) If the employee alleges or asserts a position in the third party 40 claim adverse to the employer, then the commission shall have jurisdiction 41 to determine a reasonable fee, if any, for services rendered to the 42 employer; 43 (c) If there is a joint effort between the employee and employer to pur- 2 1 sue a recovery from the third party, then the commission shall have juris- 2 diction to determine a reasonable fee, if any, and apportion the costs and 3 attorney's fees between the employee and employer. 4 (5) If the amount recovered from the third party exceeds the amount of 5 the subrogated portion payable to the employer for past compensation benefits 6 paid, then to the extent the employer has a future subrogated interest in that 7 portion of the third party recovery paid to the employee, the employer shall 8 receive a credit against its future liability for compensation benefits. Such 9 credit shall apply as future compensation benefits become payable, and the 10 employer shall reimburse the employee for the proportionate share of 11 attorney's fees and costs paid by the employee in obtaining that portion of 12 the third party recovery corresponding to the credit claimed. The employer 13 shall not be required to pay such attorney's fees and costs related to the 14 future credit prior to the time the credit is claimed. However, the employer 15 and employee may agree to different terms if approved by the industrial com- 16 mission. 17 (6) If death results from the injury or occupational disease and if the 18 employee leaves no dependents entitled to benefits under this law, the surety 19 shall have a right of action against the third party for recovery of income 20 benefits, reasonable expenses of medical and related services and burial 21 expense actually paid by the surety and for recovery of amounts paid into the 22 industrial special indemnity account pursuant to section 72-420, Idaho Code, 23 and such right of action shall be in addition to any cause of action of the 24 heirs or personal representatives of the deceased. 25 (7) All rights and restrictions herein granted to the employer have pre- 26 viously been intended to be, and are hereby expressly granted to the indus- 27 trial special indemnity account. 28 SECTION 2. This act shall be in full force and effect on and after July 29 1, 2000.
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature Second Regular Session - 2000 Moved by Lake Seconded by Ridinger IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 549 1 AMENDMENT TO SECTION 1 2 On page 1 of the printed bill, in line 38, delete "a" and insert: "the"; 3 delete lines 39 through 42; in line 43, delete "(c)" and insert: "(b)"; on 4 page 2, in line 4, delete "(d)" and insert: "(c)".
STATEMENT OF PURPOSE RS 09697 The purpose of this legislation is to further clarify the circumstances and conditions under which an employer must pay a portion of the claimant's attorney's fees in workers' compensation third party liability cases. Under current law the employer is required to pay a proportionate share of the claimant's costs and attorney's fees when there is a recovery from a third party regardless of whether: (a) the employer has already reached a written agreement with the third party, (b) the employer has already commenced action on their own behalf against the third party, or (c) there is a conflict of interest between the claimant's attorney and the employer regarding the case. This bill will remove the requirement that the employer pay a proportionate share of the claimant's attorney's fees if any of the three conditions listed above exist. It will also allow for a joint effort between the employee's (injured worker's) attorney and the employer, and their attorney, to pursue a recovery from the third party, with the Industrial Commission determining a reasonable attorney fee, if appropriate, and apportioning the legal costs between the employee and employer. Under this legislation, employers will pay any claimant's attorney fees in third party cases when such fees are in fact earned by the claimant's attorney. FISCAL NOTE There will be no impact to the General Fund. CONTACT: Rep. Dennis Lake Dawn Justice Idaho Association of Commerce and Industry 343-1849 STATEMENT OF PURPOSE/FISCAL NOTE H 549