Comp insurers liable for separate attorney fee caps: state high court

New Mexico workers compensation law applying a $22,550 cap on attorney fees paid by insurers only applies to single accidents, meaning a worker can collect fees on subsequent injuries that follow the initial incident, the New Mexico Supreme Court ruled Wednesday.

In reversing in part a Court of Appeals decision in Hanrahan v. State, Human Services Dept., the state’s highest court said the single attorney fee cap on a parking lot slip-and-fall accident suffered by a now-deceased state attorney does not apply, as the man’s subsequent health issues, including infections and allergic reactions following surgery, count as separate accidents under state law.

A workers compensation judge awarded Alfred Martin attorneys’ fees, capped at $22,550 each, for two separate litigated claims: the original slip and fall and the subsequent injuries. The appeals court reversed, ruling that the cap applied to the man’s claim as a whole, combining both the slip and fall and the post-surgical infection and allergic reaction.

The state’s highest court reversed, stating that the cap applies to a “single accidental injury,” which is defined as that which is unexpected, and that the subsequent injuries suffered as a result of the first slip and fall count as separate accidental injuries — meaning a separate cap on attorney fees can apply.

The court remanded the case but cautioned that fees must still be “reasonable.” It did affirm in part the appellate court decision on disability benefits.