The formula for determining counsel fees in a Maryland workers compensation case is a trifle bit like rocket science. Depending upon whether the fee is earned through hearing or settlement different formulas apply. Relative to the formula for attorneys fees when the award is by settlement agreement see below.
Settlement Agreements.
(a) Notwithstanding a case of a structured settlement of a claim, in a case in which an agreement
of final compromise and settlement is approved, the Commission may approve an attorney's fee
in accordance with this regulation.
(b) For a settlement amount that is less than or equal to 14 times the State average weekly wage,
the attorney's fee shall be 20 percent of the amount of the settlement.
(c) For a settlement amount that is greater than 14 times the State average weekly wage but less
than or equal to 35 times the State average weekly wage, the attorney's fee shall be:
(i) 20 percent of 14 times the State average weekly wage; plus
(ii) 15 percent of the difference between the settlement amount and 14 times the State average
weekly wage.
(d) For a settlement amount that is greater than 35 times the State average weekly wage, the
attorney's fee shall be:
(i) 20 percent of 14 times the State average weekly wage; plus
(ii) 15 percent of 21 times the State average weekly wage; plus
(iii) 10 percent of the difference between the settlement amount and 35 times the State average
weekly wage.
(e) The total amount of an attorney's fee in a case in which an agreement of final compromise
and settlement is approved may not exceed 35 times the average weekly wage.
(f) Any sums placed in a Medicare set-aside may not be included as part of the settlement for
calculation of the attorney's fee.
