Text: HSB00590 Text: HSB00592 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 86.39, Code 2003, is amended to read as 1 2 follows: 1 3 86.39 FEES – APPROVAL. 1 4 1. All fees or claims for legal, medical, hospital, and 1 5 burial services rendered under this chapter and chapters 85, 1 6 85A, 85B, and 87 are subject to the approval of the workers' 1 7 compensation commissioner. For services rendered in the 1 8 district court and appellate courts,the attorney's fee is1 9 attorney fees are subject to the approval of ajudge of the1 10 districtcourtjudge. 1 11 2. Attorney fees for services rendered under this chapter 1 12 and chapters 85, 85A, 85B, and 87 on behalf of an employee 1 13 shall be limited to the maximum amounts of twenty percent of 1 14 the first twenty-five thousand dollars of an award or 1 15 settlement, fifteen percent of the next ten thousand dollars 1 16 of an award or settlement, and five percent of the remainder 1 17 of an award or settlement, not to exceed a maximum attorney 1 18 fee of twelve thousand dollars. Attorney fees shall be paid 1 19 by the employee from the proceeds of an award or settlement. 1 20 3. All attorney-client employment contracts for services 1 21 rendered under this chapter and chapters 85, 85A, 85B, and 87 1 22 that are entered into and signed on or after January 1, 2005, 1 23 shall be subject to the conditions of this section. 1 24 4. Attorney fees for services rendered under this chapter 1 25 and chapters 85, 85A, 85B, and 87 shall not be paid until the 1 26 fees are approved by the commissioner or a district judge, and 1 27 any contract for the payment of such attorney fees 1 28 contravening any provision of this section shall be void. An 1 29 attorney shall submit a motion for approval of attorney fees 1 30 within thirty days following final disposition of the award or 1 31 settlement. Except when attorney fees are to be paid by an 1 32 employer or insurer, the attorney fees shall be paid in either 1 33 of the following ways: 1 34 a. An employee may pay the attorney fees out of the 1 35 employee's personal funds or from the proceeds of a lump sum 2 1 award or settlement. 2 2 b. The commissioner or a district judge, upon request of 2 3 an employee, may order the payment of the attorney fees 2 4 directly to the attorney by deducting the attorney fees from 2 5 the weekly benefits payable to the employee in equal 2 6 installments over the duration of the award or settlement or 2 7 until the attorney fees have been paid. 2 8 5. At the commencement of an attorney-client relationship 2 9 for services rendered under this chapter and chapters 85, 85A, 2 10 85B, and 87, the attorney shall explain to the employee-client 2 11 the methods permitted by this section for payment of attorney 2 12 fees, and the employee shall select one of the methods. The 2 13 attorney shall submit a motion for approval of attorney fees 2 14 accompanied by a notarized form signed by the employee that 2 15 sets forth the method of payment selected by the employee and 2 16 that the employee fully understands the methods of payment 2 17 available. The form shall list all methods of payment 2 18 permitted in this section for the payment of attorney fees and 2 19 shall contain an explanation of each method in nontechnical 2 20 language. 2 21 6. In approving a claim for payment of attorney fees, the 2 22 commissioner or a district judge shall consider the extent, 2 23 complexity, and quality of services rendered, and in the case 2 24 of a death claim, the life expectancy and remarriage 2 25 probability tables contained in the rules. Attorney fees may 2 26 be denied or reduced upon proof of solicitation by an 2 27 attorney. However, this provision shall not be construed to 2 28 preclude advertising by an attorney that is in conformity with 2 29 the standards prescribed by the supreme court. 2 30 7. In a claim that has been reopened under the provisions 2 31 of this chapter and chapters 85, 85A, 85B, and 87, attorney 2 32 fees may be approved by the commissioner or a district court 2 33 judge for services rendered in the reopening proceeding 2 34 subject to the limits set forth in subsection 2. If 2 35 additional benefits are not awarded to an employee in a 3 1 reopening proceeding, attorney fees shall not be approved. 3 2 8. Attorney fees for services rendered in representing an 3 3 employer in proceedings under this chapter and chapters 85, 3 4 85A, 85B, and 87 shall not exceed twelve thousand dollars for 3 5 each proceeding and shall not depend upon the result achieved 3 6 by the employer in the proceeding. Attorney fees for services 3 7 rendered on behalf of an employer may be paid on a periodic 3 8 basis by an employer during the pendency of a proceeding 3 9 without prior approval by the commissioner or a district 3 10 judge. An attorney of an employer shall submit a motion for 3 11 approval of attorney fees within thirty days following final 3 12 disposition of the award or settlement. Attorney fees that 3 13 have been approved shall be paid by the employer and shall not 3 14 exceed the amount the employer agreed by contract to pay. 3 15 EXPLANATION 3 16 This bill relates to the regulation of attorney fees in 3 17 workers' compensation cases under Code chapters 85, 85A, 85B, 3 18 86, and 87. The bill provides that attorney fees in such 3 19 cases are limited to the maximum amounts of 20 percent of the 3 20 first $25,000 of the award or settlement, 15 percent of the 3 21 next $10,000 of the award or settlement, and 5 percent of the 3 22 remainder of the award or settlement, but not to exceed a 3 23 maximum of $12,000. The attorney fees are to be paid by the 3 24 employee from the proceeds of the award or settlement. The 3 25 provisions of the bill apply to attorney-client employment 3 26 contracts, for services rendered in workers' compensation 3 27 cases, that are entered into and signed on or after January 1, 3 28 2005. 3 29 The bill provides that attorney fees for services rendered 3 30 in a workers' compensation case shall not be paid until the 3 31 fees are approved by the workers' compensation commissioner or 3 32 by a district judge for services rendered in the district 3 33 court and appellate courts. The bill provides that any 3 34 contract for the payment of attorney fees other than as 3 35 provided in the bill is void. The bill provides that an 4 1 attorney shall submit a motion for approval of attorney fees 4 2 within 30 days following final disposition of the award or 4 3 settlement. The bill provides that except when the attorney 4 4 fees are to be paid by the employer or insurer, the attorney 4 5 fees shall be paid either from the employee's personal funds 4 6 or from the proceeds of a lump sum award or settlement, or the 4 7 commissioner or a district judge may, upon request of the 4 8 employee, order the payment of the attorney fees directly to 4 9 the attorney by deducting the attorney fees from the weekly 4 10 benefits payable to the employee in equal installments over 4 11 the duration of the award or settlement or until the attorney 4 12 fees have been paid. 4 13 The bill provides that at the commencement of the attorney- 4 14 client relationship for services rendered under Code chapters 4 15 85, 85A, 85B, 86, and 87, the attorney shall explain to the 4 16 employee what methods are permitted by the bill for the 4 17 payment of attorney fees and the employee shall select one of 4 18 the methods. The attorney shall submit a motion for approval 4 19 of the attorney fees accompanied by a notarized form signed by 4 20 the employee that sets forth the method of payment selected by 4 21 the employee and that the employee fully understands the 4 22 methods of payment available. The form must also list all 4 23 methods of payment permitted by the bill with an explanation 4 24 of each method in nontechnical language. 4 25 The bill provides that in approving a claim for payment of 4 26 attorney fees, the commissioner or a district judge shall 4 27 consider the extent, complexity, and quality of services 4 28 rendered, and in the case of a death claim, the life 4 29 expectancy and remarriage probability tables contained in the 4 30 rules. The bill also provides that attorney fees may be 4 31 denied or reduced upon proof of solicitation by an attorney, 4 32 but advertising by an attorney is not prohibited so long as it 4 33 is in conformity with the standards prescribed by the Iowa 4 34 supreme court. 4 35 The bill provides that in a reopening of a workers' 5 1 compensation case, attorney fees may be approved for services 5 2 rendered in the reopening proceeding subject to the limits set 5 3 forth in the bill. If no additional benefits are awarded to 5 4 an employee in a reopening proceeding, attorney fees shall not 5 5 be approved. 5 6 The bill also provides that attorney fees for services 5 7 rendered in representing an employer in workers' compensation 5 8 proceedings shall not exceed $12,000 for each proceeding and 5 9 shall not depend upon the result achieved by the employer in 5 10 the proceeding. The bill provides that attorney fees for 5 11 services rendered on behalf of an employer may be paid on a 5 12 periodic basis by an employer during the pendency of the 5 13 proceeding without prior approval by the commissioner or a 5 14 district judge. The bill provides that an attorney for an 5 15 employer shall submit a motion for approval of attorney fees 5 16 within 30 days following final disposition of the proceeding. 5 17 The bill also provides that an employer shall pay attorney 5 18 fees that have been approved and that do not exceed the amount 5 19 the employer agreed by contract to pay. 5 20 LSB 5358YC 80 5 21 av/sh/8
Text: HSB00590 Text: HSB00592 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 29 03:30:38 CST 2004
URL: /DOCS/GA/80GA/Legislation/HSB/00500/HSB00591/040128.html
jhf