Report Title:

Work Comp; Attorney's fees

Description:

Establishes factors for the appellate board or supreme court to consider in deciding whether to award attorney's fees and costs to an employee who wins on appeal. Makes the awarding of costs, together with attorney's fees and costs, discretionary.

THE SENATE

S.B. NO.

1577

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO WORKERS' COMPENSATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 386-93, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) If an employer appeals a decision of the director or appellate board, the costs of the proceedings of the appellate board or the supreme court of the State, together with reasonable attorney's fees [shall] may be assessed against the employer, if the employer loses; provided that if an employer or an insurance carrier, other than the employer who appealed, is held liable for compensation, the costs of the proceedings of the appellate board or the supreme court of the State together with reasonable attorney's fees [shall] may be assessed against the party held liable for the compensation. The exercise of discretion in awarding attorney's fees and costs, in whole or in part, shall be based upon:

(1) The reasonableness of the employer's original and continuing denial of the benefits in dispute;

(2) The time and effort required by the complexity of the case;

(3) The novelty and difficulty of the issues;

(4) The fees awarded in similar cases;

(5) The benefits obtained for the claimant;

(6) The hourly rate customarily awarded attorneys possessing similar skill and experience; and

(7) Any other relevant factors."

SECTION 2. Section 386-93, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) If an employer appeals a decision of the director or appellate board, the costs of the proceedings of the appellate board or the appellate court, together with reasonable attorney's fees, [shall] may be assessed against the employer if the employer loses; provided that if an employer or an insurance carrier, other than the employer who appealed, is held liable for compensation, the costs of the proceedings of the appellate board or the appellate court, together with reasonable attorney's fees, [shall] may be assessed against the party held liable for the compensation. The exercise of discretion in awarding attorney's fees and costs, in whole or in part, shall be based upon:

(1) The reasonableness of the employer's original and continuing denial of the benefits in dispute;

(2) The time and effort required by the complexity of the case;

(3) The novelty and difficulty of the issues;

(4) The fees awarded in similar cases;

(5) The benefits obtained for the claimant;

(6) The hourly rate customarily awarded attorneys possessing similar skill and experience; and

(7) Any other relevant factors."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval; provided that section 2 shall take effect on July 1, 2006.

INTRODUCED BY:

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