By Jones of Dallas H.B. No. 1004
75R3419 PB-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to attorneys' fees in workers' compensation cases.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 408.221, Labor Code, is amended to read
1-5 as follows:
1-6 Sec. 408.221. ATTORNEY'S FEES PAID TO CLAIMANT'S COUNSEL.
1-7 (a) An attorney's fee, including a contingency fee, for
1-8 representing a claimant before the commission or court under this
1-9 subtitle must be approved by the commission or court.
1-10 (b) Except as otherwise provided, an attorney's fee under
1-11 this section is based on the attorney's time and expenses according
1-12 to written evidence presented to the commission or court. Except
1-13 as provided by Subsection (c) or by Section 408.147(c), the
1-14 attorney's fee shall be paid from the claimant's recovery.
1-15 (c) The insurance carrier shall pay the claimant's
1-16 attorney's fee if the claimant prevails in an issue contested by
1-17 the insurance carrier regarding:
1-18 (1) the determination of maximum medical improvement;
1-19 (2) the application of an impairment rating to the
1-20 claimant;
1-21 (3) whether the claimant's injury arose in the course
1-22 and scope of the claimant's employment; or
1-23 (4) the determination of the average weekly wage
1-24 applicable to the claimant.
2-1 (d) In approving an attorney's fee under this section, the
2-2 commission or court shall consider:
2-3 (1) the time and labor required;
2-4 (2) the novelty and difficulty of the questions
2-5 involved;
2-6 (3) the skill required to perform the legal services
2-7 properly;
2-8 (4) the fee customarily charged in the locality for
2-9 similar legal services;
2-10 (5) the amount involved in the controversy;
2-11 (6) the benefits to the claimant that the attorney is
2-12 responsible for securing; and
2-13 (7) the experience and ability of the attorney
2-14 performing the services.
2-15 (e) [(d)] The commission by rule or the court may provide
2-16 for the commutation of an attorney's fee, except that the
2-17 attorney's fee shall be paid in periodic payments in a claim
2-18 involving death benefits if the only dispute is as to the proper
2-19 beneficiary or beneficiaries.
2-20 (f) [(e)] The commission by rule shall provide guidelines
2-21 for maximum attorney's fees for specific services in accordance
2-22 with this section.
2-23 (g) [(f)] An attorney's fee may not be allowed in a case
2-24 involving a fatal injury or lifetime income benefit if the
2-25 insurance carrier admits liability on all issues and tenders
2-26 payment of maximum benefits in writing under this subtitle while
2-27 the claim is pending before the commission.
3-1 (h) [(g)] An attorney's fee shall be paid to the attorney by
3-2 separate draft.
3-3 (i) [(h)] Except as provided by Section 408.147(c), an
3-4 attorney's fee may not exceed 25 percent of the claimant's
3-5 recovery.
3-6 SECTION 2. Section 408.222, Labor Code, is amended by adding
3-7 Subsection (c) to read as follows:
3-8 (c) Notwithstanding any other provision of this subtitle, an
3-9 attorney's fee may not be paid to a person for defending an
3-10 insurance carrier in a workers' compensation action brought before
3-11 the commission or appealed to a court under Chapter 410 unless the
3-12 insurance carrier prevails in the action.
3-13 SECTION 3. This Act takes effect September 1, 1997, and
3-14 applies only to a claim for workers' compensation benefits based on
3-15 a compensable injury that occurs on or after that date. A claim
3-16 based on a compensable injury that occurs before that date is
3-17 governed by the law in effect on the date that the compensable
3-18 injury occurred, and the former law is continued in effect for that
3-19 purpose.
3-20 SECTION 4. The importance of this legislation and the
3-21 crowded condition of the calendars in both houses create an
3-22 emergency and an imperative public necessity that the
3-23 constitutional rule requiring bills to be read on three several
3-24 days in each house be suspended, and this rule is hereby suspended.