Opinion

Andrews, Torey v. Yates Services, LLC

  • 2017 TN WC App. 33
Court
Tennessee Workers' Compensation Appeals Board
Filed
May 23, 2017
Status
Published
On the bench
Marshall L. Davidson III, David F. Hensley, Timothy W. Conner
Cited by
0 cases
Authority
More cited than 12.5%

The opinion

TENNESSEE BUREAU OF WORKERS’ COMPENSATION

WORKERS’ COMPENSATION APPEALS BOARD

Torey Andrews ) Docket No. 2016-05-0854

)

v. ) State File No. 58300-2016

)

Yates Services, LLC, et al. )

)

)

Appeal from the Court of Workers’ )

Compensation Claims )

Dale Tipps, Judge )

Vacated and Remanded - Filed May 23, 2017

The employee, who alleges a back injury suffered while working on an assembly line,

appeals the trial court’s denial of his motion for attorney’s fees and expenses. Following

the trial court’s determination that the employee was entitled to medical and temporary

disability benefits, the employee filed a motion seeking attorney’s fees and expenses

pursuant to Tennessee Code Annotated section 50-6-226(d)(1). The trial court denied the

motion based on a finding that the employer acted reasonably in declining to pay

benefits. The employee has appealed, asserting that the trial court should have granted

his request for attorney’s fees and expenses. Finding that the trial court’s resolution of

this issue was premature, we vacate the trial court’s order denying the employee’s motion

and remand the case.

Presiding Judge Marshall L. Davidson, III, delivered the opinion of the Appeals Board in

which Judge David F. Hensley and Judge Timothy W. Conner joined.

Samuel B. Garner, Jr., Pulaski, Tennessee, for the employee-appellant, Torey Andrews

John R. Rucker, Jr., Murfreesboro, Tennessee, for the employer-appellee, Yates Services,

LLC

Factual and Procedural Background

Torey Andrews (“Employee”), an assembly line worker employed by Yates

Services, LLC (“Employer”), alleges suffering an injury to his back on July 21, 2016,

1

while installing windows in car doors as the doors moved down the assembly line.

Employer initially accepted the claim and provided a panel of physicians but, after

receiving a medical opinion indicating the injury was not compensable, denied additional

benefits. Employee sought treatment on his own and obtained a medical opinion that his

injury arose primarily out of his employment. Following an expedited hearing, the trial

court accepted the opinion of Employee’s physician, found Employee was likely to

prevail at trial, and ordered temporary disability and additional medical benefits. That

decision was not appealed.

Thereafter, Employee filed a motion for attorney’s fees in the amount of $7,325,

plus $1,137 in expenses. Relying upon Tennessee Code Annotated section 50-6-

226(d)(1)(B), Employee asserted that Employer denied benefits “absent [a] valid basis”

and thus “wrongfully denied” his claim. Employer responded by arguing that any fee

awarded should be calculated based upon twenty percent of the benefits ordered, the rate

provided for in Tennessee Code Annotated section 50-6-226(a)(1), not the hourly rate

charged by Employee’s attorney. Employer also pointed out that section 50-6-226(d)(1)

is silent as to when a determination of attorney’s fees and costs should be made, and

asserted that fees and costs should be determined at the end of the case rather than in the

midst of the litigation.

In analyzing Employee’s motion, the trial court observed that section 50-6-

226(d)(1)(B) contemplates two scenarios under which attorney’s fees and expenses may

be awarded, the first being an employer’s failure to timely initiate benefits. The trial

court noted the absence of any evidence supporting such a failure in this case. To the

contrary, the court noted that Employer provided a panel of physicians within days of

when Employee reported hurting his back and also accommodated his medical

restrictions for several months.

The other scenario identified by the trial court for potentially awarding attorney’s

fees and expenses under section 50-6-226(d)(1)(B) is when an employer “wrongfully

denies” the claim. The trial court did not explicitly address the meaning of this phrase,

but did find that Employer’s actions were reasonable under the circumstances. The court

explained that “[i]t is unrealistic to expect [Employer] to continue to provide benefits

once the authorized doctor opined the injury was not work-related, and it would be

inequitable to punish it for observing the statutory presumption of correctness of that

opinion.” Accordingly, the trial court denied Employee’s motion for attorney’s fees and

expenses. Employee has appealed.

Standard of Review

The standard we apply in reviewing a trial court’s decision is statutorily mandated

and limited in scope. Specifically, “[t]here shall be a presumption that the findings and

conclusions of the workers’ compensation judge are correct, unless the preponderance of

2

the evidence is otherwise.” Tenn. Code Ann. § 50-6-239(c)(7) (2015). The trial court’s

decision may be reversed or modified if the rights of a party “have been prejudiced

because findings, inferences, conclusions, or decisions of a workers’ compensation judge:

(A) Violate constitutional or statutory provisions;

(B) Exceed the statutory authority of the workers’ compensation judge;

(C) Do not comply with lawful procedure;

(D) Are arbitrary, capricious, characterized by abuse of discretion, or

clearly an unwarranted exercise of discretion; or

(E) Are not supported by evidence that is both substantial and material

in the light of the entire record.”

Tenn. Code Ann. § 50-6-217(a)(3) (2015).

Analysis

This is our first appeal involving Tennessee Code Annotated section 50-6-

226(d)(1), which gives trial courts the discretion to award reasonable attorney’s fees and

reasonable expenses when an employer fails to furnish appropriate medical care or when

an employer wrongfully denies a claim or fails to timely initiate benefits. Specifically,

the statute provides:

(d)(1) In addition to attorneys’ fees provided for in this section, the court of

workers’ compensation claims may award reasonable attorneys’ fees and

reasonable costs, including reasonable and necessary court reporter

expenses and expert witness fees, for depositions and trials incurred when

the employer:

(A) Fails to furnish appropriate medical, surgical, and dental

treatment or care, medicine, medical and surgical supplies,

crutches, artificial members, and other apparatus to an

employee provided for in a settlement, expedited hearing

order, compensation hearing order, or judgment under this

chapter; or

(B) Wrongfully denies a claim by filing a timely notice of

denial, or fails to timely initiate any of the benefits to which

the employee is entitled under this chapter, including medical

benefits under § 50-6-204 or temporary or permanent

disability benefits under § 50-6-207, if the workers’

compensation judge makes a finding that such benefits were

owed at an expedited hearing or compensation hearing.

3

(2) Subdivision (d)(1)(B) shall apply to injuries that occur on or after July

1, 2016, but shall not apply to injuries that occur after June 30, 2018.

Section 50-6-226(d)(1)(B) does not define a wrongful denial of benefits, or any

other key term, and it also does not address when during the litigation process an award

of attorney’s fees and expenses should be made. Employee’s central argument in this

appeal surrounds the meaning of the language “wrongfully denies” in subdivision

(d)(1)(B). Employee argues that the legislature’s use of the phrase “wrongfully denies” is

not synonymous with bad faith or ill-will. Rather, Employee asserts that, in this context,

“wrongfully denies” should be construed to mean that an employer incorrectly denied

benefits, regardless of bad faith or malice. Employee maintains that this interpretation of

the statute is consistent with its purpose which, according to Employee, is to encourage

attorneys to accept cases that may otherwise be considered unprofitable.1

In our view, the dispositive question in this appeal is not the meaning of the

statute’s language or its proper application, but whether a determination of attorney’s fees

and expenses is ripe at this stage of the case. We find no authority, and none has been

suggested to us, requiring that determinations regarding attorney’s fees and expenses be

made at an interlocutory stage of the case. Given the twists and turns inherent in

litigation, it seems the better practice is to resolve such issues after the litigation has run

its course and the parties and the court no longer face uncertainties over future

developments, as opposed to adjudicating disputes concerning attorney’s fees and

expenses in piecemeal fashion as the case winds its way through the litigation process.

Thus, we conclude that the trial court’s resolution of the attorney’s fees and expenses

issue was, at this early juncture in the case, premature. This is not to suggest that a

determination of attorney’s fees and expenses may never be proper prior to the

conclusion of a case, as each case must be evaluated based on the particular

circumstances presented. However, there is nothing about this particular case to warrant

such a determination at this time. Accordingly, because we conclude it was premature to

address Employee’s claim for attorney’s fees and expenses at this interlocutory stage of

the case, the trial court’s denial of Employee’s request for attorney’s fees and expenses is

vacated.

Before concluding, we note that this decision is not intended to interpret any of the

key terms in section 50-6-226(d)(1)(B). Any such determination on our part would be

premature and advisory only. See Hooker v. Haslam, 437 S.W.3d 409, 417 (Tenn. 2014)

1

Employee makes factual assertions in his brief regarding the refusal of attorneys in his county to accept

workers’ compensation cases. He also relies on an annual report to the legislature prepared by the Bureau

of Workers’ Compensation. However, this information was not presented to the trial court, and we will

not consider it for the first time on appeal. See Hadzic v. Averitt Express, No. 2014-02-0064, 2015 TN

Wrk. Comp. App. Bd. LEXIS 14, at *13 n.4 (Tenn. Workers’ Comp. App. Bd. May 18, 2015) (“[W]e will

not consider on appeal testimony, exhibits, or other materials that were not properly admitted into

evidence at the hearing before the trial judge.”).

4

(“Tennessee courts follow self-imposed rules of judicial restraint so that they stay within

their province to decide, not advise, and to settle rights, not to give abstract opinions.”)

(internal quotation marks omitted). Those issues must await an appropriate occasion.

Conclusion

The trial court’s order denying Employee’s motion for attorney’s fees and

expenses is vacated. The case is remanded for any further proceedings that may be

necessary.

5

TENNESSEE BUREAU OF WORKERS’ COMPENSATION

WORKERS’ COMPENSATION APPEALS BOARD

Torey Andrews ) Docket No. 2016-05-0854

)

v. ) State File No. 58300-2016

)

Yates Services, LLC, et al. )

CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the Appeals Board’s decision in the

referenced case was sent to the following recipients by the following methods of service

on this the 23rd day of May, 2017.

Name Certified First Class Via Fax Via Email Address

Mail Mail Fax Number Email

Samuel B. Garner, Jr. X samgarner@fowlkesgarner.com

John R. Rucker, Jr. X jrucker@ruckerlaw.com

Dale Tipps, Judge X Via Electronic Mail

Kenneth M. Switzer, X Via Electronic Mail

Chief Judge

Penny Shrum, Clerk, X Penny.Patterson-Shrum@tn.gov

Court of Workers’

Compensation Claims

Matthew Salyer

Clerk, Workers’ Compensation Appeals Board

220 French Landing Dr., Ste. 1-B

Nashville, TN 37243

Telephone: 615-253-1606

Electronic Mail: WCAppeals.Clerk@tn.gov

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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