Attorney Fees for a Workers Comp Case

[Janie]

My question involves workers compensation law for the state of: New York

I am in the process of settling my WC case. My DOI was 3/30/2009. The WC-MSA has already been submitted to CMS for approval and is broken down as follows:

Total MSA $212,035.96 to be funded with an annuity, of which $13,679 is paid at settlement and $6,611.88 each yr thereafter for life.

$175,000 lump sum cash payment to resolve the claim under section 32.

Is my attorney's fee based on the lump sum only, or is it based on the MSA & lump sum? I can not find reference to any WC laws on this. BTW, I have the greatest attorney ever Thank you...

[PattyPA]

What did the WC board say? My understanding is that they (or the judge) sets the attorneys fees for work comp cases in your state.

[Janie]

What did the WC board say? My understanding is that they (or the judge) sets the attorneys fees for work comp cases in your state.

True the Judge does have to approve the attorney's fee request. What I don't know is what the fee is legally based on, the lump sum cash I get or the cash and the MSA. I can't find any NY laws on this...Thanks you responding

Sorry I forgot to answer your 1st question. It has not gotten approval yet so WC has not yet seen it.

[PattyPA]

Sorry, New York is not my state, and what I posted is about all I know about how things work there. Another responder might.

[Janie]

In New York State if your section 32 has an MSA annuity of $212,000 & a lump sum cash settlement to of $175,000, is it legal for my attorney's fees to be requested on the entire amount which is $387,000? It doesn't seem right that it would be calculated to include the MSA since it will be funded over my life time. Thank you....

[PattyPA]

That's what I'm saying. I don't know.

[Janie]

In NY State, what are attorney fees based on when there is a Section 32 Settlement that includes an MSA life time funded annuity & Lump Sum cash N.Y. My attorney has informed me that the law judge ultimately decides but that it should be backed on the toltal amount of MSA & Cash. The MSA part doesn't seem fair because it is funded over the rest of my life time. I am 48yrs old now.

[aaron]

An annuity that pays out $212,000 over a course of years isn't presently worth $212,000. So are you asking about a legal fee that takes a percentage of the present value of an annuity, with the present value being $212,000, a legal fee that pretends that the payout over time of $212,000 is the present value, or an attorney fee that will be charged in the future as amounts are paid on the annuity?

[Janie]

An annuity that pays out $212,000 over a course of years isn't presently worth $212,000. So are you asking about a legal fee that takes a percentage of the present value of an annuity, with the present value being $212,000, a legal fee that pretends that the payout over time of $212,000 is the present value, or an attorney fee that will be charged in the future as amounts are paid on the annuity?

Thank you for responding. My attorney has stated that fee is calculated from the "entire" settlement amount, specifically, the 175,000 lump sum cash plus the 212,000 not at it's present value of 13,800 to be paid at settlement but at ultimate value of 212,000. That just doesn't seem right me even though I'm aware that the judge decides in the end. I think I'm afraid he will ask me to sign off on his fee request. He's a great attorney but that piece isn't reasonable. That's why I wanted to know if there's a NY State law about it.

[Janie]

An annuity that pays out $212,000 over a course of years isn't presently worth $212,000. So are you asking about a legal fee that takes a percentage of the present value of an annuity, with the present value being $212,000, a legal fee that pretends that the payout over time of $212,000 is the present value, or an attorney fee that will be charged in the future as amounts are paid on the annuity?

I am refering to a legal fee that pretends that the payout over time of $212,000 is the present value. This is in addition to the $175,000 sump sum. My understaning is that in NY an attorney can only be paid on the money that is passing through the WC board/court. That figure would be $175,000 & the MSA that is to be funded at settlement of $13,679, a total of $188,679. I have a feeling that when he drafts his fee request he is going to attempt to have me agree in writing to the 212k plus the 175K. I'm not going to do that.