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A BILL TO BE ENTITLED
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AN ACT
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relating to the amount of attorney's fees awarded to a claimant's |
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counsel in certain workers compensation proceedings. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 408.221, Labor Code, is amended by |
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amending Subsections (b) and (c) to read as follows: |
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(a) An attorney's fee, including a contingency fee, for |
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representing a claimant before the division or court under this |
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subtitle must be approved by the commissioner or court. |
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(b) Except as otherwise provided by Subsection (c) or |
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Section 408.147(c), an attorney's fee under this section is based |
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on the attorney's time and expenses according to written evidence |
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presented to the division or court and[.
Except as provided by
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Subsection (c) or Section 408.147(c),] the attorney's fee shall be |
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paid from the claimant's recovery. |
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(c) An insurance carrier that seeks judicial review under |
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Subchapter G, Chapter 410, of a final decision of the appeals panel |
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regarding compensability or eligibility for, or the amount of, |
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income or death benefits is liable for reasonable and necessary |
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attorney's fees as provided by Subsection (d) incurred by the |
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claimant as a result of the insurance carrier's appeal if the |
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claimant prevails on an issue on which judicial review is sought by |
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the insurance carrier in accordance with the limitation of issues |
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contained in Section 410.302. If the carrier appeals multiple |
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issues and the claimant prevails on some, but not all, of the issues |
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appealed, the fee [court] shall be apportionedto [and] award |
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fees to the claimant's attorney only for the issues on which the |
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claimant prevails. In making that apportionment, the [court] jury, |
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or trial judge when jury is not requested, shall consider the |
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factors prescribed by Subsection (d). [This subsection does not
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apply to attorney's fees for which an insurance carrier may be
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liable under Section 408.147.] An award of attorney's fees under |
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this subsection is not subject to commissioner rules adopted under |
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Subsection (f). |
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(d) In approving an attorney's fee under this section, the |
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commissioner or court shall consider: |
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(1) the time and labor required; |
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(2) the novelty and difficulty of the questions |
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involved; |
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(3) the skill required to perform the legal services |
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properly; |
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(4) the fee customarily charged in the locality for |
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similar legal services; |
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(5) the amount involved in the controversy; |
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(6) the benefits to the claimant that the attorney is |
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responsible for securing; and |
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(7) the experience and ability of the attorney |
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performing the services. |
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(e) The commissioner by rule or the court may provide for |
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the commutation of an attorney's fee, except that the attorney's fee |
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shall be paid in periodic payments in a claim involving death |
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benefits if the only dispute is as to the proper beneficiary or |
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beneficiaries. |
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(f) The commissioner by rule shall provide guidelines for |
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maximum attorney's fees for specific services in accordance with |
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this section. |
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(g) An attorney's fee may not be allowed in a case involving |
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a fatal injury or lifetime income benefit if the insurance carrier |
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admits liability on all issues and tenders payment of maximum |
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benefits in writing under this subtitle while the claim is pending |
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before the division. |
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(h) An attorney's fee shall be paid to the attorney by |
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separate draft. |
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(i) Except as provided by Subsection (c) or Section |
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408.147(c), an attorney's fee may not exceed 25 percent of the |
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claimant's recovery. |