eNotes: Workers’ Compensation – April 2023 – Maryland

SIGNIFICANT LEGISLATIVE UPDATES

Maryland Legislative Update

Attorney’s fees now allows payment of counsel fees (Claimant counsel) in exceptional circumstances when there is no compensation due to the Claimant in a WCC Award.

This existing COMAR regulation was modified, effective 4/3/23 in answer to the WCC’s recent concerns that counsel for claimants were not regularly representing clients who wanted to litigate medical treatment or vocational rehabilitation services. The WCC concluded that this was largely the case because counsel could not recover a fee as there was no indemnity from which a counsel fee could be deducted. The prior form of this regulation barred payment of a counsel fee if there was no compensation ordered to be paid to Claimant. These changes are targeted to remove any legislative barrier from counsel applying for a fee in exceptional circumstances in which there is no compensation paid to the Claimant. However, although there was discussion of how and by whom the counsel fees would be paid the final regulation does not address the mechanics of payment of a counsel fee paid in exceptional circumstances.

There are still questions as to who will pay, what defines exceptional circumstances, and how frequently the WCC will find exceptional circumstances. We will provide updates on how the WCC rules on these issues moving forward.

Questions about these new regulations can be directed to Ruth Jacobs at (443) 641-0573 or rjacobs@tthlaw.com.