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Civil

 

Workers’ Compensation

Attorney Fees

This case concerned whether attorney, who represented relator in his workers’ compensation matter, was entitled to $4,000 in excess attorney fees. The parties entered into a stipulation for settlement under which attorney would receive 20 percent of a $150,000 settlement (i.e., $30,000). After weighing the Irwin factors, the workers’ compensation judge denied attorney’s request for $4,000 in excess fees above the statutorily capped amount of $26,000. On appeal, the Workers’ Compensation Court of Appeals (WCCA) affirmed. Attorney then appealed to this court raising, among other issues, a challenge to the statute under the Contracts Clause of the Minnesota Constitution. Specifically, attorney argued that Minn. Stat. § 176.081, subd. 1(a), impairs the parties’ right to contract as to attorney fees. While briefing was underway on appeal to this court, the Minnesota Legislature amended § 176.081, increasing the presumptive cap from $26,000 to $55,000, effective for dates of injury on or after October 1, 2024.

The Supreme Court held that (1) the 2024 amendment to Minn. Stat. § 176.081, which increases the cap on attorney fees in workers’ compensation cases, does not apply retroactively; (2) the WCCA did not err by declining to automatically approve the requested excess fee; (3) Minn. Stat. § 176.081, subd. 1(a) does not violate the Contracts Clause of the Minnesota Constitution; and (4) the WCCA did not err by affirming the compensation judge’s denial of excess attorney fees under Irwin v. Surdyk’s Liquor, 599 N.W.2d 132 (Minn. 1999). Affirmed.

A24-0507 Jurgensen v. Dave Perkins Contr., Inc. (Workers’ Compensation Court of Appeals)