With the Florida Supreme Court having agreed in Castellanos
v. Next Door Co. to consider constitutional and related legal challenges to
the statutory regime which governs the payment of Claimant attorney fees in
workers compensation cases, and with the outcome of the case threatening to
alter the landscape of workers compensation litigation for decades to come, the
eyes of the Florida workers compensation community are intently trained on the
evolving arguments being raised through the initial briefing process.
The following synopsis will provide an overview of the arguments
which have thus far been raised by the Petitioner, as well as the Amicus Curiae
backing the Petitioner, in opposition to the formulaic methodology established
by Florida Statute Section 440.34 for the determination of an injured worker's
(i.e. Claimant’s) attorney fees. The Respondent in the case has yet to
file its Initial Brief.
The Castellanos case arises out of an attorney fee award of $164.54,
calculated in strict accordance with Section 440.34 which constrained the Judge
of Compensation Claims to a fee award which was predicated upon application of
the 440.34 statutory formula to the $822.70 value of benefits secured by the
Claimant's attorney. When viewed in the context of the 107.2 hours
of time expended (reasonably as determined by the JCC) by the Claimant’s
attorney in complex litigation to secure the benefits, the award amounted to
compensation at the rate of $1.53 per hour.
In addition to the parties (Petitioner and Respondent) to the case, seven
advocacy groups have petitioned the Court to join the litigation in the
capacity of Amicus Curiae, all promoting the cause of the Petitioner, Marvin
Castellanos. The Petitioner's Initial Brief to the Court was filed April
8. Initial Briefs filed by four of the Amicus have followed.
A summary of the arguments advanced in the Initial Briefs follows:
April 8, 2014 Initial Brief by Petitioner
The Petitioner's Initial Brief sets out five distinct legal challenges:
1. Section 440.34 violates the separation of powers
doctrine and fundamental due process rights by establishing a compulsory
mathematical formula for the determination of attorney fees, thus violating
Florida Bar Rule 4-1.5 which invests judges with the authority to make
discretionary determinations regarding the quantum of attorney fees which are
deserving in any particular case.
2. The statutory divestment of judicial discretion to
award anything but a formulaically-determined fee results in a taking of
property without due process by virtue of it being confiscatory of the right of
Claimant attorneys to be adequately compensated.
3. The mandatory statutory formula results in a
violation of equal protection principles by establishing a system where the
ability of an injured worker to compensate his or her attorney is strictly
conscribed yet the ability of the Employer to compensate its attorney is
unlimited.
4. The statute violates the ability to contract and
speak freely by depriving the injured worker of the ability to enter into a
contract for the provision of legal services at an agreed-upon rate.
5. The statute violates the state Constitution's
guarantee of access to courts by prohibiting the award of
"reasonable" attorney fees, in contravention of the 1967 Act which
established the legislative and legal framework for the workers compensation
system.
April 11 Initial Brief by the Florida Justice Association
This Brief advances two principal arguments:
1. The statutory formula violates established case
law precedent and the separation of powers doctrine of the Florida Constitution
by causing a confiscation of attorney time, energy, and talents.
2. The statute violates the separation of powers
doctrine by allowing the legislature to infringe upon the judiciary's inherent
authority to oversee and regulate attorney fees, as well as the practice of law
in general.
April 17 Initial Brief of the Workers Compensation Section of the Florida
Bar
Four arguments are presented in the Section's Brief as follows:
1. The statutory formula for determining attorney
fees unduly restricts the ability of Judges of Compensation Claims to discharge
the duties of their office.
2. The statutory formula unjustly impedes access to
the courts and the ability of injured workers to obtain legal representation.
3. The statute improperly singles out one class of
litigant for disparate treatment under the law by imposing limitations on the
contract rights of one party but not the other.
4. The statute unjustly impedes the administration of
justice in Florida.
April 21 Initial Brief by Voices, Inc.
This Brief raises a single argument asserting that the restriction of attorney
fees under 440.34 to those which derive from application of an inflexible
formula to the value of benefits secured results in a denial of the injured
worker's right to equal protection under the laws of Florida.
April 22 Initial Brief by the Fraternal Order of Police
This Brief advances the following two arguments:
1. By making attorney fee restrictions under 440.34
applicable to only one party, the statute violates the Florida Constitution by
eliminating a right established by the vote of Florida's citizens in the 1968
Declaration of Rights, thereby hindering the ability of injured workers to
obtain legal representation due to an inability to pay counsel a reasonable fee
and resulting in an abridgment of civil rights historically available to
injured workers.
2. The statute violates First Amendment guarantees of
freedom of speech as it prohibits injured workers from retaining counsel for a
reasonable sum, thus resulting in a system which unconstitutionally favors the
speech of the employer (which is free to pay its legal representatives any sum
it wishes) over that of the injured worker (who is limited in compensating his
or her legal counsel by the confines of 440.34).
The abbreviated summaries presented above cannot capture the nuance and
breadth inherent to each of the legal arguments set forth in the various
parties' Briefs. They do, however, encapsulate the issues the Justices at
the Court will wrestle with once the briefing and oral argument process is
complete. For a more expansive explanation of the arguments
presented in the Briefs discussed above, please contact Jerry McKim at jmckim@wylandtadros.com.