Hitchins v. Fed. Express Corp., No. WC24-6578 (W.C.C.A Mar. 28, 2025)
The employee, Joanne Hitchins, sustained an admitted injury to her left hip on November 28, 2018, when she fell on ice in a parking lot while working for the self-insured employer, Federal Express. All appropriate benefits were paid.
On December 28, 2021, the employee sustained another admitted work injury to her right shoulder when she fell on ice while delivering a package. Litigation arose from this injury.
On January 9, 2023, the employee hired attorney Thomas Atkinson to represent her in her workers’ compensation claims and signed a retainer agreement. The retainer agreement provided for attorney’s fees in the amount of 20 percent of benefits awarded up to a maximum of $26,000 in fees pursuant to Minn. Stat. § 176.081.
At a mediation session on July 20, 2023, a tentative settlement was reached to pay the employee an additional $135,000 for a full, final, and complete close out of benefits, including future medical expenses, for both dates of injury. As part of the settlement, the employee would also be required to execute an employment separation agreement.
On July 25, 2023, the Employee suggested a counteroffer of $166,000 with future medical benefits open, or $190,000 if the settlement closed out future medical benefits, which was rejected.
On August 24, 2023, the employee told the attorney that she was planning on having surgery and filing for SSDI by the next week. Her attorney responded that the self-insured employer would revoke the current settlement offer. Despite his warning, the Employee ended up applying for SSDI.
Not long after, the Employee refused to sign a medical authorization. The attorney then told the employee to pick up her file and that he was “done with [her] games.” (Ee. Ex. A.) He filed an attorney’s lien on November 28, 2023, and the employee filed an objection to the lien on December 8, 2023.
Shortly thereafter, the Employee agreed to a new Stipulation for Settlement that was not much different from the one negotiated by her former attorney.
At issue was the Compensation Judge’s award of $26,000 in attorney fees.
Ultimately, the court found that the Settlement reached was essentially the same as the one negotiated by Attorney Atkinson, and that he was thus entitled to compensation for the work he did.
Takeaway: An Employee’s attorney is still entitled to attorney fees for a settlement that was negotiated during the representation, even if it was not executed and paid until after the representation had concluded.
Hitchins v. Fed. Express Corp., No. A25-0649 (SUPREME COURT – NOVEMBER 21, 2025)
This case (WCCA No. WC24-6578) was considered and decided by the Supreme Court without oral argument on November 21, 2025.
This case was affirmed without opinion.