FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
KENNETH J. ALLEN THOMAS B. FELIX
JAMES E. BRAMMER Merrillville, Indiana
Kenneth J. Allen & Associates, P.C.
Valparaiso, Indiana PRISCILLA P. WEAVER
JAMES C. SCHROEDER
VICTORIA R. COLLADO
Mayer, Brown & Platt
Chicago, Illinois
DONALD BARCLAY, )
)
Appellant-Petitioner, )
)
vs. ) No. 45A03-9802-CV-68
)
UNIVERSAL UNDERWRITERS GROUP )
and THOMAS CONNELL, )
Appellees-Respondents. )
HOFFMAN, Senior Judge
third party claim, action or suit . . . and to the attorney at law selected by the employee
. . . a fee of twenty-five percent (25%), if collected without suit, of the amount of
benefits which benefits shall consist of the amount of reimbursements, after the
expenses and costs in connection with the third party claim have been deducted
therefrom, and a fee of thirty-three and one-third per cent (33.%), if collected with
suit, of the amount of benefits after the deduction of costs and reasonably necessary
expenses in connection with the third party claim action or suit.
Under this statutory provision, Universal had a lien against the proceeds of Barclay's
settlement with the third party for the $10,507.45 Universal had paid him. The lien is not in
dispute; rather, the parties disagree as to what portion of the lien Universal must pay to
Barclay's attorney as Universal's statutory share of that attorney's fee.
Barclay argues that in addition to Ind. Code § 22-3-2-13, the court must consider Ind.
Code § 34-51-2-19, Diminishment of subrogation claimsSee footnote
1
, and Ind. Code § 34-53-1-2,
Payment of insurer's share of costs and expensesSee footnote
2
.
The entirety of Ind. Code § 34-51-2-19 reads as follows:
If a subrogation claim or other lien or claim that arose out of the payment of
medical expenses or other benefits exists in respect to a claim for personal
injuries or death and the claimant's recovery is diminished:
(1) by comparative fault; or
(2) by reason of the uncollectibility of the full value of the claim for
personal injuries or death resulting from limited liability insurance or
from any other cause;
the lien or claim shall be diminished in the same proportion as the claimant's
recovery is diminished. The party holding the lien or claim shall bear a pro
rata share of the claimant's attorney's fees and litigation expenses.
reasonable and necessary costs and expenses of asserting the third-party claim. Ind. Code
§ 34-53-1-2 provides:
An insurer claiming subrogation or reimbursement rights under this chapter
shall pay, out of the amount received from the insured, the insurer's pro rata
share of the reasonable and necessary costs and expenses of asserting the third
party claim. These reasonable and necessary costs and expenses include and
are not limited to the following:
[* * *]
(3) Attorney's fees to the lesser of:
(A) the amount contracted by the insured for the insured's portion of
the claim; or
(B) thirty-three and one-third percent (33.%) of the amount of the
settlement.
Barclay argues we are to apply this statutory attorney fee calculation because, as in
D'Archangel, he reached a settlement without suit.See footnote
3
First, Ind. Code § 34-53-1-2 applies to an insurer claiming subrogation or
reimbursement rights under [Chapter 1]. As we have stated above, Universal is claiming
reimbursement rights under Ind. Code § 22-3-2-13, not Ind. Code § 34-53-1-2. Barclay has
argued that we should attempt to reconcile the interplay between Ind. Code § 22-3-2-13
and both Ind. Code § 34-53-1-2 and § 34-51-2-19. In this way, we are to find that Barclay's
counsel has a statutory entitlement to a fee of 33.% of Barclay's recovery from the third-
party tortfeasor. In actuality, however, whether Barclay's counsel receives 25% of Barclay's
recovery from the third-party tortfeasor or 33.% of that recovery is a matter to be decided
between Barclay and his counsel. The statutory interpretation yields no valid reason for
Universal to be bound by that decision. Universal is bound only by the terms of Ind. Code
§ 22-3-2-13 as to what it shall pay an attorney chosen by the injured employee, and that
statute makes a very clear distinction between a recovery collected without suit and one
collected with suit.
The trial court's grant of summary judgment is affirmed.
JUDGMENT AFFIRMED.
SULLIVAN, J., and SHARPNACK, C.J., concur.
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