WINFREE, Justice.
A successful workers' compensation claimant requested an attorney's fees award. The Alaska Workers' Compensation Board decided her request was "a little high" for the benefits she received and reduced the requested fee award by 30 percent. She appealed the Board's order to the Alaska Workers' Compensation Appeals Commission. The Commission reversed the Board's order and remanded the case to the Board for further consideration of a fee award. The claimant then requested an attorney's fees award from the Commission for her appeal. The Commission refused to award her attorney's fees, finding she was not the successful party on appeal. We granted the claimant's petition to review the Commission's own attorney's fees decision. We reverse the Commission's decision and remand for an attorney's fees award to the claimant for work performed in her appeal because it was error for the Commission to find the claimant was not a successful party.
Judith Lewis-Walunga was injured in 2004 while employed by the Municipality of Anchorage. Shortly after the Municipality controverted Lewis-Walunga's workers' compensation claim, attorney William Soule entered an appearance on her behalf before the Board. In December 2006 the Municipality agreed some of Lewis-Walunga's injuries were compensable and paid attorney's fees for work associated with that aspect of her claim. The Municipality and Lewis-Walunga disagreed about several other issues, and Soule continued to represent Lewis-Walunga.
The Board heard Lewis-Walunga's case in April 2008. The issues before the Board were additional temporary total disability (TTD), additional permanent partial impairment (PPI), additional medical benefits, penalties and interest, and attorney's fees. The Board also considered a separate claim by Dr. William Ross, Lewis-Walunga's chiropractor, who represented himself. At the hearing the Municipality agreed to pay Lewis-Walunga's outstanding medical bills except those of Dr. Ross exceeding frequency standards set by regulation.
In a June 2008 decision the Board determined most disputed issues in Lewis-Walunga's favor, including an increased PPI rating and the requested TTD. Although the Board found Lewis-Walunga was "entitled to reasonable attorney's fees" under AS 23.30.145(b), it decided more evidence was needed before it could determine the amount because the Municipality claimed the requested fees included hours for work on an abandoned issue. The Board held a second hearing solely on the attorney's fees issue, at which time the attorney's fees request totaled $38,920, including time spent preparing for and attending the attorney's fees hearing.
At the hearing the Municipality argued that the requested amount was excessive and that fees should be awarded under AS 23.30.145(a) rather than AS 23.30.145(b).
The Board issued an order in October 2008. The Board affirmed its earlier decision that Lewis-Walunga was entitled to reasonable attorney's fees and found that the attorney's services "were complex, time[-]consuming and costly ... as supported by his affidavits." But the Board also found that the claimed attorney's fees were "a little too high for granting [the] associated [benefits] award," which the Board estimated at $20,000 in value. The Board awarded $27,244 in fees, a 30 percent reduction from the requested amount.
Lewis-Walunga appealed this order to the Commission. In her opening brief she requested that the Commission reverse the attorney's fee award and
Lewis-Walunga alternatively requested that the Commission remand the case to the
At oral argument before the Commission Lewis-Walunga expressed concern that the Board had implicitly adopted the Municipality's Rule 68 argument, and urged the Commission to remand the case to the Board with clear instructions not to apply a Rule 68-type analysis. She also asked the Commission to remand the case to the Board because the Board did not adequately explain its reasons for reducing her fees request. The Municipality abandoned its argument that a Rule 68-type analysis should apply to Board fees awards, but argued that the Board had correctly applied the regulatory factors in making its award.
The Commission vacated the Board's order and remanded the fee dispute to the Board for further proceedings. The Commission sua sponte questioned the applicability of AS 23.30.145(b) and decided that the Board plainly erred in failing to explain why it awarded fees under subsection .145(b) rather than subsection .145(a). Noting that AS 23.30.145(a) "establishe[d] a minimum fee, but not a maximum fee," the Commission held that "the record could support the [B]oard's decision to award a reasonable fee in excess of the statutory minimum" but determined that the Board had not made adequate findings. The Commission could not "discern what the [B]oard found to justify the conclusion that the award [was] `a little too high'" and remanded the case to the Board for further findings.
After the Commission issued its decision Lewis-Walunga moved for an attorney's fees award for the appeal. The Municipality opposed the motion, arguing that Lewis-Walunga was not the successful party because the Commission rejected her arguments and she "did not get the relief requested—an award of full attorney's fees."
The Commission declined to award fees to Lewis-Walunga, concluding she was not the successful party on appeal. It stated:
We granted Lewis-Walunga's petition to review the Commission's refusal to award attorney's fees for her appeal.
In a workers' compensation appeal from the Commission we apply our independent judgment to questions of law that do not involve agency expertise.
Lewis-Walunga contends that the Commission made both factual and legal errors in denying her request for attorney's fees. She maintains she was a successful party in her appeal because she got the relief she asked for when the Commission agreed with her that the Board had not adequately explained its fee award. Lewis-Walunga interprets the Commission's statement that the denial of fees was without prejudice to mean that she "could reapply for attorney[']s fees and costs, if the matter ever came before the Commission again," and argues that the Commission made a legal error in concluding "that a remand by itself was insufficient to bestow prevailing party status." She asserts that making an employee wait for fees until a case is entirely resolved is contrary to precedent from both this court and the Commission.
The Municipality maintains Lewis-Walunga was not a successful party before the Commission because it reversed and remanded the Board's order based on an issue the Commission raised sua sponte and because it rejected Lewis-Walunga's arguments. The Municipality asserts that it was the successful party before the Commission because the Municipality "successfully defended" against Lewis-Walunga's claims. The Municipality disputes Lewis-Walunga's contention that she could reapply for attorney's fees for the work done in the present appeal even if she were successful on remand.
Alaska Statute 23.30.008(d) governs the Commission's attorney's fees awards and provides in relevant part: "In an appeal, the [C]ommission shall award a successful party reasonable costs and, if the party is represented by an attorney, attorney['s] fees that the [C]ommission determines to be fully compensatory and reasonable."
There is little legislative history about AS 23.30.008(d), but what there is suggests that the legislature intended Commission attorney's fees awards to follow the same rules as appellate attorney's fees awards in the courts. One section-by-section analysis of the legislation creating the Commission stated: "The [C]ommission shall award attorney['s] fees to successful appellants, but, as currently is the rule, attorney['s] fees may not be awarded against an employee unless the appeal was frivolous, unreasonable or taken in bad faith."
Looking at AS 23.30.008(d), we first read the legislature's use of the phrase "[i]n an appeal" to signal that the Commission's fee award is independent of success in the underlying claim. Unlike AS 23.30.145(a) or.145(b), AS 23.30.008(d) does not tie a fee award to success on a claim—it instructs the Commission to award fees in the appeal.
We then note that the legislature's language in AS 23.30.008(d)—that fees be "fully compensatory and reasonable"—is language we have used to distinguish workers' compensation attorney's fees awards from other types of attorney's fees awards.
Finally, as to "successful party," we note that Appellate Rule 508(g)(2), the model for AS 23.30.008(d), provides: "In an [appeal from the Commission], full reasonable attorney's fees will be awarded to a successful claimant." We have construed "successful claimant" as "a workers' compensation claimant who is the prevailing party on a significant issue on appeal."
This case presents our first opportunity to review a factual finding by the Commission. The Commission is authorized to accept evidence on specific topics, including applications for attorney's fees and costs.
In denying Lewis-Walunga attorney's fees, the Commission found that "the essential element of the relief [Lewis-Walunga] requested on appeal was a remand with instructions" to award full reasonable attorney's fees.
The Municipality responds that substantial evidence supports the Commission's finding because in Lewis-Walunga's opening brief, she wrote:
According to the Municipality, the Commission "specifically rejected the arguments [Lewis-Walunga] raised in support of [her] request on appeal." In her reply Lewis-Walunga quotes a different part of her Commission brief, countering that she asked the Commission in the alternative to either remand for further findings or order the Board to award fees that had been reasonably incurred in the case.
Our review of the entire record leads us to conclude that the Commission's finding is not supported by substantial evidence. In her opening brief to the Commission Lewis-Walunga asked for the following relief: a remand to the Board "with instructions not to reduce Attorney Soule's attorney[']s fees under AS 23.30.145(b) based on the size of the benefits awarded to his client" but to award "such amount of attorney[']s fees that the Board finds were reasonably incurred in the representation of the employee in this case" or "alternatively, to make sufficient findings of fact and legal analysis so as to adequately explain the Board's decision."
In her reply brief before the Commission Lewis-Walunga claimed that the Board's "terse explanation" for its decision made it unclear whether the Board had adopted the Municipality's argument that the Board should apply "a Rule 68 analysis." She also argued that the Board had not made adequate findings and said, "[o]nly by way of reasoned findings, can the Commission expect to be able to conduct adequate reviews of [a]ttorney[']s [f]ees [a]wards by the Board in this case or any other." In the final paragraph of her reply brief Lewis-Walunga requested a remand "for the purpose of obtaining a reasoned decision that is not simply based on a comparison of the amount of the award and the amount of Appellant's attorney[']s fees."
At oral argument before the Commission Lewis-Walunga emphasized that a remedy she sought was a remand to clarify the Board's decision. She identified "the problem[s] in this case" as the Municipality's use of a Rule 68 argument and the lack of Board findings. She asked the Commission to instruct the Board not to use a Rule 68-type of analysis when awarding attorney's fees. She
Because the Commission granted the very relief Lewis-Walunga requested, she prevailed on a significant issue in the Commission appeal. It was error for the Commission to find otherwise and to not award Lewis-Walunga her full reasonable attorney's fees for work done before the Commission.
For the foregoing reasons, we REVERSE the Commission's decision not to award Lewis-Walunga attorney's fees and REMAND to the Commission for an appropriate attorney's fees award.
At that time Appellate Rule 508(g)(2) provided for awards of "full reasonable attorney's fees ... to a successful claimant" in appeals from the Board. Appellate Rule 508(g)(1), like AS 23.30.008(d), limited the award of attorney's fees against an injured worker to cases in which the court found the worker's position on appeal was frivolous, unreasonable, or taken in bad faith. Appellate Rule 508(g)(1)-(2) (2005).