Insurance Co. of North America v. Stuebing
This case involves a dispute between an injured worker's attorneys and the Insurance Company of North America (INA), the insurer under the Texas Workers’ Compensation Act, concerning attorney's fees. INA had paid benefits to Mrs. Joseph C. Stuebing and later joined her attorneys, Cantey, Hanger, Gooch, Munn & Collins, to recover common law damages from a third-party tort-feasor. The third-party suit was settled for $100,000, with INA receiving $34,090.21, its full subrogated amount. The trial court awarded $5,500 in attorney's fees against INA, which INA appealed, arguing the award was excessive or unwarranted given that the settlement amount was initially offered before the attorneys' involvement. The appellate court reversed and remanded the judgment due to insufficient evidence regarding the value of the attorneys' time, while otherwise upholding the principle that an insurer can be liable for a portion of the employee's attorney's fees under certain circumstances.