Eagle Indemnity Co. v. Industrial Accident Commission

SHENK, J.

Petition to review and annul an award of the Industrial Accident Commission.

On September 15, 1931, Gavino Hernandez, an employee, sustained injuries arising out of and in the course of his employment, as a result of which he died. The petitioner herein is the insurance carrier of the employer. On application of the widow and minor children of the decedent, the respondent Commission awarded a death benefit com

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puted in accordance with the statute. The Commission found, among other things, that “the applicants’ representative, Alex Mestas, is entitled to a lien against compensation for the reasonable value of his services in the sum of $100”, and in its award made the compensation payable to the widow “less $100 thereof payable to Alex Mestas, as attorney’s fees”.

It is the award of the reasonable value of his services to Alex Mestas as the applicants’ representative, and the making of the amount thereof “as attorney’s fees” a lien on the award, that is attacked as beyond the jurisdiction of the Commission, since it appeared beyond dispute that Mestas is not and never has been admitted to practice law in the courts of this state.

The respondent seeks to justify its action under the terms of the Workmen’s Compensation and Safety Act and particularly sections 19a and 24 thereof. Section 19a provides in part: “Either party shall have the right to be present at any hearing in person or by attorney or by any other agent, and to present such testimony as shall be pertinent under the pleadings.” Section 24a provides in part that “No compensation, whether awarded or voluntarily paid, shall be paid to any attorney at law or in fact or other agent, but shall be paid directly to the claimant entitled to the same, unless otherwise ordered by the commission”; and 24b: “The commission may fix and determine and allow as a lien against any amount to be paid as compensation: (1) A reasonable attorney’s fee for legal services pertaining to any claim for compensation either before the commission or before any of the appellate courts.” Section 24d provides that it shall be competent for the commission to determine what shall be a reasonable charge for legal services and that no charge, claim or agreement for such services in excess of the amount so determined “shall be enforceable, valid or binding in any respect”. This section also provides: “The privilege of any person, including attorneys admitted to practice in the Supreme Court of the state of California, to appear in any proceeding as a representative of any party before the commission or any of its referees, may be removed, denied, prohibited or suspended by the commission for a violation of the foregoing provisions of this section or for good cause, after hearing had.”