GRAND RAPIDS WORKER’S COMPENSATION ATTORENY FEES AND COSTS
Understand attorney’s fee for workers’ compensation claims is extremely important.
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Worker’s Compensation Attorney Fees are paid on a contingency basis. What this means is that there is NO attorney fees if there is not a recovery for you. The attorney is paid only if you receive compensation.
The percentage of attorney fees is regulated by the State of Michigan as follows:
15% of the first $25,000 recovered, then 10% of the balance if the case is actually litigated and then settled before trial.
10% if the case is not litigated and a settlement is reached while your Michigan workers compensation benefits are being paid.
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MICHIGAN WORKER’S COMPENSATION ADMINISTRATIVE RULE ON ATTORNEY FEES
(1) The limitation in this rule as to fees applies to plaintiff’s attorneys, including combined charges of attorneys who combine their efforts toward the enforcement or collection of any compensation claim.
(2) In a case tried to completion with proofs closed or compensation voluntarily paid, an attorney, before computing the fee, shall deduct from the accrued compensation the reasonable expenses incurred on plaintiff’s behalf. The fee that the magistrate may approve shall not be more than 30% of the balance.
(3) In a case involving a redemption of liability, the attorney, before computing the fee, shall deduct the reasonable expenses incurred on plaintiff’s behalf from the total settlement. The fee that the magistrate may approve is as follows:
(a) Of the first $25,000.00, a fee of not more than 15%.
(b) Of any amount more than $25,000.00, a fee of not more than 10%.
(4) In a case tried to completion with proofs closed but before a final order, after which there is a redemption of liability, the attorney, before computing the fee, shall deduct the reasonable expenses incurred on plaintiff’s behalf from the total settlement. The total settlement in such redemptions shall be deemed to include the gross amounts of any partial payments made under section 862 of the act, if the redemption specifically includes a waiver of the right of reimbursement of such amounts from either the plaintiff or the second injury fund. The fee that the magistrate may approve shall not be more than 20% of the balance.
(5) Reasonable expenses, as used in this rule, include all of the following:
(a) Medical examination fee and witness fee.
(b) Any other medical witness fee, including the cost of a subpoena.
(c) The cost of a court reporter service.
(d) Appeal costs.
(6) Subrules (2) to (4) of this rule apply to a case with an injury date on or after September 1, 1965. The rule as to attorney fees in effect before September 1, 1965, applies to a case with an injury date before September 1, 1965.
(7) In a case dismissed for lack of progress or prosecution or in which the petition for hearing is withdrawn for reasons other than voluntary payment or other meritorious reasons and further action is taken by the same attorney or law firm, the fee that the magistrate may approve in cases specified in subrule (2) of this rule shall be not more than 25% of the balance; in subrule (3) of this rule, of the first $25,000.00, not more than 12-1/2%, and of any amount more than $25,000.00, 10%; in subrule (4) of this rule, the fee shall be not more than 15% of the balance.
(8) A group disability or hospitalization insurance company that enforces an assignment given to it as provided in the act shall pay a part of the fee of the attorney who secured the compensation recovery in the same proportion that the group insurance company payments bear to the total compensation recovery upon which the attorney’s fee is based.
(9) In the computation of attorney fees in a case decided by the workers’ compensation appellate commission, the fee shall be assessed on not more than 104 weeks of the period the matter was pending before the commission. All other weekly benefits due and owing for the period of appeal shall be fully paid to the plaintiff. The limitation of fee applies only to weekly compensation.
(10) In a case where benefits are being voluntarily paid at time of redemption, and no application for mediation or hearing is pending, not more than 10% attorney fee will be allowed.
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