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Clark v. Board of Trustees of Butler County Community College
Citations: 791 F. Supp. 839; 1992 U.S. Dist. LEXIS 8100; 1992 WL 113642Docket: Civ. A. No. 89-1169-T
Court: District Court, D. Kansas; May 20, 1992; Federal District Court
The court is addressing the motion for determination of a workers' compensation lien filed by intervenors Travelers Insurance and National Carriers. Following a jury verdict favoring plaintiff Clark for $302,000, which was reduced to $271,800 due to Clark's 10% fault, the parties settled for $240,000. Of this settlement, $30,804 is currently held by plaintiff's attorneys pending resolution of the lien. Prior to the trial, the intervenors and plaintiff agreed on a method for applying recovery funds to the lien, including a provision where if Clark recovered $100,000 or less, the intervenors would accept 33.33% of that recovery in full satisfaction of their lien. For amounts over $100,000, they would receive 40% reimbursement after deducting litigation expenses and attorney fees. The intervenors have paid a total of $57,802.91 in workers’ compensation benefits to Clark. Disagreements arose regarding the amount owed to intervenors post-settlement, with plaintiff calculating a due amount of $24,019.27, while intervenors claimed entitlement to the entire $30,804. They presented various claims for amounts ranging from $30,803.28 to $41,496.14 but admitted to not adhering to the agreed calculation method. The intervenors argued that the agreement was poorly crafted and ambiguous, but the court found the agreement clear and unambiguous, stating that it delineates the distribution of settlement proceeds explicitly. The court concluded that the intervenors appear to be attempting to evade a disadvantageous agreement, and it seems both the defendants and intervenors misjudged the case's value and Clark's fault. Intervenors did not participate in the underlying trial to protect their lien rights, which led to an agreement with the plaintiff that spared them from hiring separate legal representation. The court acknowledges that intervenors are entitled to $24,019.27 to satisfy their lien, minus attorneys’ fees determined by the court. The plaintiff requested an additional $3,080.40 (10% of intervenors’ claim) in attorneys’ fees for contesting intervenors’ motion. The court deemed $3,000 as a reasonable fee for the work involved. Consequently, the court will deduct this fee from the amount due to intervenors, resulting in a net entitlement of $21,019.27 for them. The court orders that Travelers Insurance Company and National Carriers, Inc. receive $21,019.27 from the plaintiff, and the plaintiff’s counsel is awarded $3,000 in attorneys’ fees from the settlement proceeds. The plaintiff is also entitled to any remaining funds from the settlement with the defendants.