Attorney Fees: Allocation of Award

Bustell v. AIG Claims Service, Inc. [05/03/05] 2005 MTWCC 23 Attorney fees awarded against an insurer must be credited pro rata against fees due the claimant’s attorney both from the claimant and from medical providers subject to Lockhart liens. The amount of the credit must be determined by dividing the amount of the attorney fee award by the claimant’s estimated lifetime benefits. The resulting percentage is the percentage by which the Lockhart lien must be reduced and also the percentage by which the fees owed by the claimant with regard to non-medical benefits must be reduced.