Chapter 04. Legal Representation and Fees
Regulation .01 Legal Representation.LinkCopy Citation
A.
Representation.
(1)
A party may be represented before the Commission by:
(a)
An attorney admitted by the Court of Appeals to practice in this State;
(b)
An out-of-State attorney specially admitted by order of the circuit court pursuant to the Business Occupations and Professions Article, §10-215, Annotated Code of Maryland; or
(c)
A party, who is an individual, may appear on the individual's own behalf pursuant to Business Occupations and Professions Article, §10-102, Annotated Code of Maryland.
(2)
All parties, other than an individual electing to represent him or herself, may be represented only by an attorney.
B.
Attorney Registration with Commission.
(1)
An attorney wishing to practice before the Commission shall register for CompHub.
(2)
Following verification and completion of the registration, the Commission shall issue the attorney a multiple digit attorney code.
(3)
Attorneys registered for CompHub shall maintain current contact information with the Commission and shall notify the Commission of any change in their contact information within 30 days of the change.
C.
Entry of Appearance.
(1)
An attorney representing a claimant enters an appearance as attorney of record automatically when the attorney files the claim electronically.
(2)
Except as provided in §C(1) of this regulation, an attorney representing a party in a claim shall complete and file an entry of appearance form with the Commission to establish an attorney of record.
(3)
If an insurer does not yet have an attorney of record, within 10 days of the filing of issues by any party, an insurer shall have an attorney complete and file an entry of appearance form with the Commission to establish an attorney of record.
(4)
After an entry of appearance form has been filed by an attorney on behalf of the insurer, all papers filed on behalf of the insurer shall be filed by the attorney of record until the claim becomes undisputed.
D.
Notices.
(1)
If a party is represented by an attorney, notices to the party may be served on the attorney of record only.
(2)
An employer may designate a person who shall receive a courtesy copy of each notice of employee’s claim filed against the employer.
E.
Termination of Representation.
(1)
By Notice. An attorney may withdraw an appearance by filing a notice of withdrawal if:
(a)
The client has another attorney of record; or
(b)
The claim has been settled and there is no possibility of any future medical benefits.
(2)
By Motion. If an attorney is not permitted to withdraw an appearance by notice under §E(1) of this regulation, the attorney wishing to withdraw an appearance shall file a motion to withdraw. Except if the motion is made in an open hearing with the client present, the motion shall be accompanied by the client's written consent to the withdrawal or the moving attorney's certificate that notice has been mailed to the client at least 5 days prior to the filing of the motion, informing the client of the attorney's intention to move for withdrawal and advising the client to have another attorney enter an appearance or to notify the Commission in writing or through CompHub of the client's intention to proceed in proper person. The Commission may deny the motion if withdrawal of the appearance would cause undue delay, prejudice, or injustice.
(3)
An attorney whose appearance has been entered on behalf of a party to a claim remains the attorney of record for the party to that claim unless the appearance was terminated under §E(1) or (2) of this regulation.
Regulation .02 Attorney's Fee, Medical Evaluation Fee, and Costs — Application or Petition for Approval.LinkCopy Citation
A.
Request for Attorney’s Fee Not in Excess of Schedule.
(1)
An attorney seeking approval of an attorney’s fee that does not exceed the maximum amount set forth in Regulation .03 of this chapter, shall request approval of the fee by filing the claimant’s consent to pay fees and costs form.
(2)
A completed claimant’s consent to pay fees and costs form shall:
(a)
Be signed by the claimant;
(b)
Include the amount of any medical evaluation fee requested to be approved;
(c)
Include any amount of costs advanced by claimant's attorney for which the attorney is seeking payment; and
(d)
Include any appeal fee requested under Regulation .03B(8) of this chapter.
(3)
An attorney shall substantiate a request for a medical evaluation fee, costs, or a fee under Regulation .03 of this chapter by:
(a)
Submitting medical bills, receipts, or other evidence of costs;
(b)
Submitting evidence establishing that:
(i)
The prior compensation award was appealed to the circuit court and tried on appeal;
(ii)
The prior compensation award was appealed to an appellate court, briefed and decided on the merits;
(iii)
The prior compensation award was appealed to the circuit court but not resolved by trial;
(iv)
The prior compensation award was appealed to an appellate court but not briefed and decided on the merits; or
(v)
The prior order of the Commission on the issue of compensability of the claim was appealed to the circuit court and the claim was determined to be compensable by the circuit court or jury.
(4)
The claimant's consent to the fee is not binding on the Commission.
(5)
An award by the Commission approving an attorney's fee under this regulation shall be notice to the party responsible for payment to reserve in escrow the amount of fee approved.
(6)
If an appeal is not filed within 30 days, the party responsible for payment shall remit the approved fee to the attorney immediately after the expiration of the 30-day appeal period.
(7)
If an appeal is filed timely, the party responsible for payment shall continue to reserve in escrow the amount of the fee approved by the Commission pending final determination of the appeal.
(8)
If the parties agree that an appeal will not be filed, the fee may be remitted to the attorney before expiration of the 30-day appeal period.
(9)
An attorney seeking approval of an attorney’s fee that does not exceed the maximum amount set forth in Regulation .03 of this chapter shall:
(a)
Accurately calculate the fees sought; and
(b)
Include an itemization of all attorney’s fees previously awarded by reference to the amount and date of the Commission’s orders.
(10)
Failure to comply with this regulation may result in the reduction or denial of the attorney’s fee sought.
B.
Petition for Attorney’s Fee in Excess of Schedule.
(1)
An attorney seeking an attorney's fee exceeding the maximum amount set forth in Regulation .03 of this chapter, shall draft and file with the Commission a written petition.
(2)
The petition shall contain the following:
(a)
A clear and concise description of the legal services rendered to the claimant;
(b)
The amount of attorney's fee requested to be approved;
(c)
A detailed statement of the reasons for a fee in excess of the maximum amount set forth in Regulation .03 of this chapter;
(d)
A detailed statement establishing the exceptional circumstances that warrant an excess fee;
(e)
The claimant's signed acknowledgement of the fact that the attorney is requesting approval of an attorney's fee in excess of the schedule, in the amount specified and for the services described;
(f)
The amount of any medical evaluation fee requested to be approved; and
(g)
A certificate of service indicating that a copy of the petition has been served on the claimant, as well as the other parties to the case.
(3)
A petition for approval of an attorney's fee ordinarily shall be considered by the Commissioner who issued the award of compensation.
C.
Unreasonable Proceeding — Attorney Fee Award.
(1)
Pursuant to Labor and Employment Article, §9-734, Annotated Code of Maryland, the Commission may award a reasonable attorney’s fee in any proceeding as a sanction against the conduct of a party acting without reasonable ground.
(2)
The Commission may make the attorney's fee award on its own initiative or at the request of any party.
(3)
Unless the award of the fee is appealed, the fee allowed under this section is payable immediately.
Regulation .03 Schedule of Attorney's Fees.LinkCopy Citation
A.
The Commission shall approve attorney’s fees in accordance with the schedule of fees established by the Commission and set forth in §C of this regulation.
B.
Definitions.
(1)
In this regulation, the following terms have the meanings indicated.
(2)
Terms Defined.
(a)
“Award of compensation” means the amount of indemnity benefits actually paid or payable to the claimant after applying:
(i)
Any credit or offset required by Labor and Employment Article, §9-503(c), 9-609, or 9-610, Annotated Code of Maryland; or
(ii)
Reduction of the percentage of permanent partial disability following a stipulation, appeal, or other modification approved by the Commission.
(b)
“Final award” means the award of compensation determined by the Commission after exhaustion of all applicable appeals, regardless of whether the award is increased or decreased because of any appeal.
(c)
“Formal set-aside allocation” means a document reflecting a comprehensive analysis and projection of future injury-related medical needs and associated costs.
(d)
“State average weekly wage” means the State average weekly wage in effect on the date of the accident or date of disablement.
C.
Schedule of Fees.
(1)
Amounts Excluded from Calculation. In calculating the attorney’s fee, an attorney may not include in the calculation any amounts paid or payable for medical services and prescription drugs, including but not limited to:
(a)
Any monies allocated to future medical expenses through a formal set-aside allocation;
(b)
Any monies apportioned to future medical benefits;
(c)
Any monies already paid or owing for medical services and prescription drugs; or
(d)
Any monies charged or to be charged for the administration of a formal set-aside allocation.
(2)
Fee in Excess of Limits — Exceptional Circumstances. The Commission may approve an attorney’s fee in excess of the limits set forth in this regulation only if exceptional circumstances are shown under Regulation .02B of this chapter.
(3)
Permanent Partial Disability.
(a)
General. Except as otherwise provided in §C(3)(b) of this regulation, in a case in which a final award of compensation is made for permanent partial disability, the Commission may approve an attorney’s fee in a total amount not to exceed 60 times the State average weekly wage and computed as follows:
(i)
Up to 20 percent of the first $50,000 of the total award of compensation;
(ii)
Up to 15 percent of the next $50,000 of the total award of compensation; and
(iii)
Up to 5 percent of the total award of compensation in excess of $100,000.
(b)
Disability Due to Amputation or Loss of Vision — Generally. Except as provided in §C(3)(c) of this regulation, in a case in which the rate of compensation is set for permanent partial disability due to the amputation of an arm, leg, hand, or foot, or total loss of vision in one eye, and the sole issue before the Commission is the nature and extent of disability, the Commission may approve an attorney’s fee in an amount up to 5 percent of the compensation awarded, but not exceeding 7.5 times the State average weekly wage.
(c)
Disability Due to Amputation or Loss of Vision — Worsening. In a case of worsening of a permanent partial disability due to the amputation of an arm, leg, hand, or foot, or total loss of vision in one eye, takes place or is discovered after the rate of compensation is set or compensation is terminated, the Commission may approve an attorney’s fee computed under §C(8) of this regulation on the increased award.
(4)
Permanent Total Disability.
(a)
General. Except as otherwise provided in this regulation, in a case in which an initial determination of permanent disability produces a final award of compensation for permanent total disability, the Commission may approve an attorney’s fee in an amount not exceeding 25 times the State average weekly wage.
(b)
Special Cases. The Commission may approve an attorney’s fee in an amount not exceeding 15 times the State average weekly wage in a case in which compensability is not an issue and an award of compensation is made for permanent total disability established pursuant to either:
(i)
Labor and Employment Article, §9-636(b), Annotated Code of Maryland, for the loss of two or more scheduled members; or
(ii)
The stipulation on the extent of disability.
(5)
Temporary Total and Temporary Partial Disability. The Commission may not approve an attorney’s fee in a case in which final award of compensation is made for temporary total or temporary partial disability or temporary total disability paid while a claimant is receiving vocational rehabilitation services unless the claimant’s right to the compensation is contested, and the issue is resolved by evidentiary hearing or by stipulation. In such a contested case, the fee may be in an amount not exceeding 10 percent of the compensation that has accrued as of the date of the award.
(6)
Dependency Claims.
(a)
In a case involving a claim of dependency where compensability is not contested, but the extent of dependency, partial or total, or the identity of a dependent, or both is contested, the Commission may approve a total attorney’s fee for attorneys representing all dependents:
(i)
In an amount not exceeding 6.25 times the State average weekly wage in a case of partial dependency under Labor and Employment Article, §9-682, Annotated Code of Maryland; or
(ii)
In an amount not exceeding 15 times the State average weekly wage in a case of total dependency under Labor and Employment Article, §9-681 or 9-683.3, Annotated Code of Maryland.
(b)
In a case involving a claim of dependency where neither compensability nor dependency is contested and a record is being made solely to determine to whom payments of compensation shall be made, the Commission may approve an attorney’s fee in an amount not exceeding 2.5 times the State average weekly wage.
(c)
In a case involving a claim of dependency where compensability and dependency are contested, the Commission may approve an attorney’s fee:
(i)
In an amount calculated under §C(3)(a) of this regulation in a case involving a claim of partial dependency under Labor and Employment Article, §9-682 or 9-683.3, Annotated Code of Maryland; or
(ii)
In an amount calculated under §C(4)(a) of this regulation in a case of total dependency under Labor and Employment Article, §9-681, Annotated Code of Maryland.
(7)
Settlement Agreements. In a case in which an agreement of final compromise and settlement is approved, and upon the filing of an application or petition for an attorney’s fee in accordance with Regulation .02 of this chapter, the Commission may approve an attorney’s fee not exceeding 60 times the State average weekly wage and computed in accordance with §B(3)(a) of this regulation.
(8)
Increase in Last Award of Compensation.
(a)
Permanent Partial Disability. If the claimant is entitled to additional compensation as a result of an increase in a permanent partial disability award under §C(3) of this regulation the Commission may approve an additional attorney’s fee in an amount not exceeding the difference between the fee approved for all prior permanent partial disability awards and the fee computed under §C(3) or (4)(a) of this regulation on the increased award.
(b)
Agreement of Final Compromise and Settlement. If the claimant is entitled to additional compensation as a result of an agreement of final compromise and settlement approved under §C(7) of this regulation following a prior award of permanent partial disability, the Commission may approve an additional attorney’s fee in an amount not exceeding the difference between the fee approved for all prior awards and the fee computed under §C(3) or (4) of this regulation on the increased award.
(c)
In a case in which a determination of permanent disability made pursuant to Labor and Employment Article, §9-736(a), Annotated Code of Maryland, produces a final award of compensation for permanent total disability, the Commission may approve an additional attorney’s fee in an amount as follows:
(i)
20 percent of the first 200 weeks of permanent total disability benefits, excluding any cost-of-living increase as provided in Labor and Employment Article, §9-638 or §9-638.1, Annotated Code of Maryland, minus a fee or fees approved for all prior permanent disability awards; and
(ii)
Not exceeding 15 times the State average weekly wage.
(9)
Additional Fees for Appeals of Compensation Awards.
(a)
When a compensation award of the Commission is appealed to a circuit court and the case is tried on appeal, the Commission may approve an additional attorney’s fee in an amount up to 5 percent of the first final indemnity award issued following the circuit court action, but not exceeding 7.5 times the State average weekly wage.
(b)
When a decision of a circuit court on an appeal from a compensation award of the Commission is appealed to a higher appellate court and the appeal is briefed and decided on its merits, the Commission may approve an additional attorney’s fee for each appeal in an amount up to 5 percent of the first final indemnity award issued following the appellate action, but not exceeding 7.5 times the State average weekly wage.
(c)
When an appeal from a compensation award of the Commission to a circuit court is not tried, or an appeal to a higher appellate court is not briefed and decided on its merits, the Commission may approve an additional attorney’s fee in an amount up to 2.5 percent of the first final indemnity award issued following the appellate action or circuit court action, but not exceeding 3.75 times the State average weekly wage.
(d)
When a decision of the Commission on the issue of compensability of a claim is appealed to a circuit court, if the claim is determined on appeal to be compensable, the Commission, upon remand, may approve an additional attorney’s fee in an amount up to 5 percent of the first final indemnity award issued following the remand, but not exceeding 7.5 times the State average weekly wage.
(e)
An attorney may be awarded an appeal fee under only one of paragraphs (a) — (d) of this subsection for a circuit court action or appellate court action.
(f)
Once an appeal fee has been awarded for a circuit court action or appellate action, the Commission may not award an additional appeal fee based on the same circuit court action or appellate action.
D.
Attorney’s Fee Allowed — Exceptional Circumstances.
(1)
In exceptional circumstances as shown under Regulation .02B of this chapter, the Commission may approve an attorney’s fee in a case in which it is determined that the claimant is not entitled to any compensation or benefits. Nothing in this regulation prohibits the Commission from awarding an attorney’s fee under Regulation .02C of this chapter.
(2)
In exceptional circumstances as shown under Regulation .02B of this chapter, the Commission may approve an attorney’s fee in a case involving issues such as medical care and treatment, or vocational rehabilitation, in which the claimant does not receive any monetary award. Nothing in this regulation prohibits the Commission from awarding an attorney’s fee under Regulation .02C of this chapter.
Regulation .04 Attorneys' Fees for Multiple Counsel.LinkCopy Citation
A.
An attorney who no longer represents a claimant and wishes to pursue a fee lien shall draft and file a petition for attorneys' fees.
B.
The petition for attorneys' fees shall include:
(1)
A statement of the work performed and the basis of the fee; and
(2)
A certificate of service.
C.
The filing of the petition for attorneys' fee constitutes a fee lien that shall be noted and held until the permanency award or settlement.
D.
Unless the parties have otherwise agreed, upon the issuance of a permanency award or settlement, any attorney's fee awarded shall be held in escrow until the distribution of the fee to be resolved by:
(1)
A hearing; or
(2)
Agreement of the attorneys on the division of the attorney's fee.
Chapter annotations
Authority: Labor and Employment Article, §§9-309, 9-721, 9-731, and 9-734, Annotated Code of Maryland
History: Effective date: December 15, 1988 (15:25 Md. R. 2903)
History: Regulation .01 amended effective July 1, 1990 (17:12 Md. R. 1494); May 28, 2001 (28:10 Md. R. 950)
History: Regulation .02B amended effective July 1, 1990 (17:12 Md. R. 1494)
History: Regulation .02F amended effective July 1, 1990 (17:12 Md. R. 1494)
History: Regulations .01—.02, Guide for Evaluation of Permanent Impairment, recodified from COMAR 14.09.04 to COMAR 14.09.09, Guide for Evaluation of Permanent Disability, effective March 3, 2014 (41:4 Md. R. 305)
History: Regulations .01—.03, recodified from Regulations .23—.25 in COMAR 14.09.01, Procedural Regulations, to COMAR 14.09.04, Legal Representation and Fees, and amended effective March 3, 2014 (41:4 Md. R. 304)
History: Regulation .01 amended effective March 12, 2018 (45:5 Md. R. 287); August 24, 2020 (47:17 Md. R. 797); October 18, 2021 (48:21 Md. R. 890)
History: Regulation .02 amended effective March 12, 2018 (45:5 Md. R. 287)
History: Regulation .02A, B amended effective April 3, 2023 (50:6 Md. R. 219)
History: Regulation .02A, C amended effective October 18, 2021 (48:21 Md. R. 890)
History: Regulation .03 repealed and new Regulation .03 adopted effective April 3, 2023 (50:6 Md. R. 219)
History: Regulation .03B amended effective July 20, 2015 (42:14 Md. R. 884); March 12, 2018 (45:5 Md. R. 287); April 8, 2019 (46:7 Md. R. 370); October 7, 2019 (46:20 Md. R. 846)
History: Regulation .03B, C amended effective October 18, 2021 (48:21 Md. R. 890)
History: Regulation .04 adopted effective March 3, 2014 (41:4 Md. R. 304)