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Araceli Cordova Ex Rel. Alfredo C. v. Nashville Ready Mix, Inc.

Tenn. Ct. App.May 29, 2020No. M2018-02002-COA-R3-CV

Case Details

Judge(s)
Judge Frank G. Clement, Jr.
Status
Published
Procedural Posture
appeal

Related Laws

No specific laws identified for this ruling.

Excerpt

This wrongful-death action arises out of the death of a Lemay Concrete employee who was struck and killed by a third party's cement-mixer truck while acting in the course and scope of his employment. The issues in this appeal are post-settlement disputes concerning an attorney's fee lien filed by the plaintiffs' first attorney, a subrogation lien filed by the employer's workers' compensation carrier, and the assessment of postsettlement discretionary costs against the carrier. The employee's family instituted this action after agreeing to pay their first attorney 33% of the gross recovery or "a reasonable attorney's fee" if they discharged him before recovering. While the action was pending, the insurance carrier paid workers' compensation benefits to the family and, after declining a settlement offer of $400,000, the plaintiffs discharged their attorney. The plaintiffs then retained substitute counsel. Months later, the wrongful-death claim was settled for $1,350,000. The plaintiffs then sought to void their first attorney's fee agreement and requested the trial court deduct a portion of their substitute counsel's fees from the carrier's subrogation lien. The trial court referred all issues to a special master. The special master found the fee agreement was valid and recommended a fee of $133,333—or 33% of $400,000, the amount of the last "firm offer" secured during the first attorney's representation. The special master's report contained no findings and identified no factors relied upon in determining that $133,333 was a "reasonable fee," other than finding the amount would be one-third of the last "firm offer" obtained by the first attorney. The special master also found the carrier's own counsel protected its subrogation lien and, thus, recommended that the carrier not be liable for any portion of the plaintiffs' attorneys' fees. The trial court adopted verbatim the special master's findings and recommendations. Additionally, the court assessed post-settlement

What This Ruling Means

**What Happened** A worker employed by Lemay Concrete was tragically killed when a cement mixer truck from another company (Nashville Ready Mix) struck him while he was working. The worker's family filed a wrongful death lawsuit against Nashville Ready Mix. The case eventually settled, but disputes arose afterward about who would receive what portions of the settlement money. **What the Court Decided** The court dealt with three separate financial disputes that emerged after the settlement: disagreements over attorney fees owed to the family's original lawyer, money claimed by the workers' compensation insurance company, and additional costs. The court resolved these post-settlement payment disputes, though the specific amounts awarded were not reported. **Why This Matters for Workers** This case highlights important workplace safety protections when workers are injured or killed by third parties while on the job. Workers and their families may be able to pursue legal action against outside companies whose negligence causes workplace injuries, even when workers' compensation is involved. However, the case also shows that settlement money can become complicated, with multiple parties potentially claiming portions of any award, including lawyers and insurance companies.

This summary was generated to explain the ruling in plain English and is not legal advice.

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