Travelers Ins. Co. v. Arevalo

Under ORS 656.382 and ORS 656.383, "attorney fees are contingent on achieving a favorable result," which cannot be “incurred” until a final order is issued, and a claimant finally prevails on a disputed issue. Travelers Ins. Co. v. Arevalo, 296 Or App 514, 521 (2019).

Employer's workers' compensation insurance carrier, Travelers Insurance Company ("Travelers"), sought judicial review of an order by the Worker's Compensation Board ("Board") awarding Claimant attorney fees. Travelers assigned error to the Board’s award of attorney fees under ORS 656.382 and ORS 656.383. On appeal, Travelers argued that the "effective date of those statutes preclude[d] the [B]oard from awarding those attorney fees" because all briefing and legal services were rendered prior to the effective date. In response, Claimant argued that the order awarding the fees was correct because Travelers' interpretation of the statutes did not account for the contingent nature of the attorney fees and did not comport with the plain meaning and legislative history of the provision. Under ORS 656.382 and ORS 656.383, "attorney fees are contingent on achieving a favorable result," which cannot be “incurred” until a final order is issued, and a claimant finally prevails on a disputed issue. Travelers Ins. Co. v. Arevalo, 296 Or App 514, 521 (2019). The Court held that even though the attorney's briefing and other services were completed prior to the effective date of both statutes, Claimant was not entitled to, and Travelers was not liable for, the fees until the final order was issued; after the effective date of those statutes.

Affirmed.