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Peabody Galion Corp. v. Kropp
Citations: 658 P.2d 1155; 1983 OK 13; 1983 Okla. LEXIS 145Docket: 55526
Court: Supreme Court of Oklahoma; February 8, 1983; Oklahoma; State Supreme Court
Two primary issues are presented for review in the case of Peabody Galion Corporation and CNA/Insurance v. Gary Eugene Kropp: 1) Whether the Court of Appeals lost the authority to award attorney fees to the respondent after the filing of a certiorari petition in the Supreme Court. 2) Whether 85 O.S. 1981, § 30 allows the Court of Appeals to award additional attorney fees. The Workers' Compensation Court initially determined that Gary Kropp sustained a 3% permanent partial disability due to an occupational disease, which was later increased to 15% upon appeal. The Court of Appeals affirmed this decision and subsequently, Kropp sought additional attorney fees, which led to the Court of Appeals awarding $1,250 after the petition for certiorari was filed by the petitioners. The Supreme Court requested clarification on the authority of the Court of Appeals to issue the attorney fee award post-certiorari. The case's settlement on July 29, 1982, did not resolve the attorney fee issue, necessitating the Court's review. The petitioners argued against the Court of Appeals' decision based on Supreme Court rules regarding post-decisional relief. The Court cited 85 O.S. 1981, § 30, which governs the taxation of attorney fees as costs in workers' compensation proceedings, stipulating that attorney fees are only awarded if proceedings were not brought on reasonable grounds or if benefits were unreasonably denied. The statute outlines payment structures for legal services linked to awards for temporary and permanent disabilities, specifying percentages and conditions for fee claims. The statute does not provide for appellate awards of attorney fees, as defined by 85 O.S. 1981, 3, which states that 'court' refers to the Workers' Compensation Court. Therefore, claims for legal services must be addressed in the trial court. This interpretation aligns with Oklahoma's 'American rule,' which prohibits attorney fees absent statutory or contractual authority, ensuring both parties cover their own fees to maintain court access. The Court of Appeals lacked the authority to award attorney fees in this case, as the determination of such fees falls exclusively under the jurisdiction of the Workers' Compensation Court. Consequently, the Court of Appeals' order awarding attorney fees is vacated. Subsequent to the order granting certiorari, a new statute effective June 2, 1982, allows the prevailing party in a Supreme Court appeal to petition for additional attorney fees. However, this statute is not applicable here as the appellate award predates its enactment. The Workers' Compensation Court retains exclusive jurisdiction over attorney fee allowances and any appeals thereof, with its decisions subject to review only for clear abuse of discretion. While there are exceptions to the no-fee rule, other states allowing such fees on appeal have done so based on specific statutory provisions.