eNotes: Workers’ Compensation – February 2024 – Maryland

SIGNIFICANT CASE SUMMARIES

Maryland Case Summary

In the Matter of Mark Zukowski
Appellate Court of Maryland- Reported
Number 1121, September Term 2022

Decided: January 31, 2024

Background

The Claimant incurred a compensable work injury. Before the Court awarded permanent partial disability benefits, the Claimant applied for and received work related disability retirement benefits. Based on statute, an offset applies to the WC benefits equal to the disability retirement benefits received by the Claimant. At the time of the hearing on permanent partial disability the Claimant’s attorney sought a fee based on the entire permanent partial disability benefit amount awarded, before the offset was applied. The Court issued its Award on permanent partial disability, noted the disability offset, and awarded attorney’s fees based on the net amount of permanence benefits after the offset was applied.

Holding

The Court held that the pertinent fee provision, Labor and Employment (LE) 9-731, provides that attorneys’ fees shall be paid from the award(s) of compensation. No other party or source shall pay or be used to pay an attorney’s fee per this statute. The Court discussed the operation of an employee’s disability and the offset statute, LE 9-610. The Court held that to assess an attorney’s fee from the compensation, before the offset, or change in compensation is applied would force payment of the attorney’s fee from a source other than compensation benefits which runs contrary to LE 9-731. The Court concluded that this cannot be reconciled. Therefore, the Court concluded that the attorney’s fee must be calculated from the amount due to be paid to the Claimant after the offset is applied.

Takeaway

When there are offsets, or changes to previous compensation awards, to be applied to compensation awards, the Claimant’s attorney’s fees must be calculated based on the actual compensation to be paid to the Claimant.

Questions about this case can be directed to Ruth M. D. Jacobs at (443) 641-0573 or rjacobs@tthlaw.com.