State, Division of Workers’ Compensation v. Titan Enterprises, LLC

Summary

The Alaska Supreme Court held that a non-claimant party may be awarded fully compensatory and reasonable attorney’s fees under AS 23.30.008(d) when successful on a significant issue in an appeal to the Alaska Workers’ Compensation Appeals Commission. When two non-claimant parties both prevail on significant issues, the Commission must consider the relative success of both parties rather than award full fees to only one. The court reversed the Commission’s fee award to Titan Enterprises and remanded for further proceedings.

Holdings

1. A litigant who is not a workers’ compensation claimant may receive fully compensatory and reasonable attorney’s fees and costs under AS 23.30.008(d) when the litigant is a successful party in an appeal to the Commission, subject to the statutory protection against fee awards against an injured worker when the worker’s position was frivolous or unreasonable or taken in bad faith.
2. When two non-claimant parties each prevail on a significant issue in a Commission appeal, the Commission must consider the success of both parties in determining attorney’s fees. It may conclude that neither party is truly successful and award no fees, or it may consider both parties’ fees and relative success and offset competing fee awards.

Questions Presented

1. Whether a successful party that is not a workers’ compensation claimant may receive attorney’s fees and costs under AS 23.30.008(d).
2. How attorney’s fees should be awarded under AS 23.30.008(d) when two non-claimant parties each prevail on a significant issue in an appeal.

Disposition

reversed_and_remanded