Narrative Opinion Summary
In this workers' compensation case, the court reversed an award of attorney fees granted to the claimant's attorney based on alleged bad faith by the insurance carrier. The claimant was deemed permanently and totally disabled by the carrier after sustaining an injury in 1988. The attorney argued that the carrier acted in bad faith, invoking section 440.34(3)(b) of the Florida Statutes, which requires demonstrating economic loss due to fraudulent or malicious conduct. The compensation judge initially identified four acts of bad faith by the carrier, but the appellate court found substantial evidence supporting only the carrier’s settlement offer. A clerical error in calculating the claimant’s average weekly wage and the alleged delay in accepting the claimant’s disability were not supported by evidence of economic loss or undue delay. The court concluded that the carrier acted appropriately, reversing the attorney fee award except for $688.00 secured for specific wage-loss benefits. The case was remanded for the compensation judge to award a reasonable fee for securing these specific benefits, emphasizing that bad-faith fees for one claim do not carry over to subsequent claims without evidence of continued bad faith. The decision was reversed and remanded, with all judges concurring.
Legal Issues Addressed
Attorney Fees under Section 440.34(3)(b), Florida Statutessubscribe to see similar legal issues
Application: The court must find proof of fraud, malice, or similar conduct resulting in economic loss to award attorney fees based on bad faith.
Reasoning: The attorney sought fees, arguing that the carrier acted in bad faith, invoking section 440.34(3)(b), Florida Statutes (1987), which requires proof of fraud, malice, or similar conduct resulting in economic loss to the claimant.
Bad Faith in Workers' Compensation Claimssubscribe to see similar legal issues
Application: The court found substantial evidence of bad faith only regarding the settlement offer but not in the calculation of wages or delay in disability acceptance.
Reasoning: However, the court found substantial evidence supporting only one instance of bad faith regarding the settlement offer, as there was no indication that the claimant was likely to be permanently disabled at that time, given prior medical evaluations.
Clerical Errors and Economic Losssubscribe to see similar legal issues
Application: A clerical error in calculating wages did not constitute bad faith as it did not result in economic loss.
Reasoning: The miscalculation of the average weekly wage was deemed a clerical error that did not result in economic loss, as the correct amount had been used prior to the attorney's involvement.
Guidance on Job-Search Responsibilitiessubscribe to see similar legal issues
Application: Failure to provide guidance on job-search responsibilities may substantiate a finding of bad faith related to securing wage-loss benefits.
Reasoning: The only substantiated finding of bad faith pertains to the denial of wage-loss benefits for the weeks of December 10 and 24, 1989. The claimant testified that the insurer did not provide guidance on job-search responsibilities.
Scope of Bad-Faith Attorney Feessubscribe to see similar legal issues
Application: Bad-faith attorney fees for one claim do not extend to future claims without evidence of bad faith in those claims.
Reasoning: Additionally, bad-faith attorney fees linked to one claim do not automatically extend to later claims without evidence of bad faith in those subsequent claims, as established in Wackenhut Corp. v. Schisler.