Florida Gets Workers’ Comp Hike Warning

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The Florida Supreme Court recently struck down a cap on fees for lawyers of injured workers, saying the attorneys must receive reasonable pay.

Businesses fear the ruling will lead to higher workers compensation rates.

Florida Insurance Commissioner Kevin McCarty said his office was reviewing the decision to determine its potential effect on the workers compensation system and rates.

The ruling came in the case of Emma Murray, a nurse injured lifting a patient at a nursing home. With the help of a lawyer, she won $3,244 in back wages and medical expenses after her employer’s insurance company initially denied her claim.

Her attorney, Bruce Sutter of Port Charlotte, was paid $648 for 200 hours of work — about $8 an hour — while attorneys on the other side got about $16,000 — $150 an hour.

The Supreme Court ruled a 2003 law containing the caps was unclear and ordered the company to also pay Sutter about $16,000 or nearly $200 an hour. The 5-0 opinion was written by Justice Charles Wells.

The 2003 law, aimed at reducing workers compensation premiums, was expected to save employers more than $610 million and rates have declined by more than half since it was passed. More reductions were in the works but they may be put on hold.

“This decision puts the rate savings and decreases of the past five years in jeopardy,” said state Rep. Dennis Ross, R-Lakeland. “Availability and affordability will once again be thrust to crisis levels for Florida employers.”

Tamela Perdue, chairwoman of the Workers Compensation Coalition for Business & Insurance Industry, said lawyer involvement in workers compensation cases was a key factor in driving up rates before the law was passed. It was intended to encourage the resolution of disputes without lawyers.