This story is republished from NM Political Report, a nonprofit news outlet, as a part of our commitment to bringing you the best in independent news coverage that matters to Albuquerque.
By Susan Morée
A bill to increase the amount of money lawyers receive for worker’s compensation cases passed unanimously on Monday in the House Judiciary Committee.
HB 66, Workers’ Compensation Changes, sponsored by Rep. Pamelya Herndon, D-Albuquerque, would address what Herndon called an equity issue because lawyers’ fees are capped for workers’ compensation cases and that cap has not been raised since 2013.
There are 32 lawyers in the state who take workers’ compensation cases and most of them are located in Santa Fe and Albuquerque, Ben Sherman, a workers compensation lawyer, said. Herndon told NM Political Report there have been cases in which a person has had to represent themselves because of the caps on attorney fees.
“I look at these attorney’s fees as an access to equal justice issue,” Herndon said. “Insurance companies always have an attorney working for them.””.
Matthew Hunton, chief executive officer of Independent Insurance Agents of New Mexico, told NM Political Report that the association is concerned that the bill, if enacted, would lead to “increased financial exposure for employers across the state.”
“In a state that is already difficult to conduct business in, this would become an additional hurdle. This bill would also increase litigation costs to our workers compensation insurance carriers which in turn increases premiums making it difficult on our small businesses already struggling to make ends meet,” Hunton said.
Rep. Andrea Reeb, R-Clovis, who previously voted against the bill, told other committee members she is now in favor of it since Herndon included a compromise on fees.
The bill, if enacted, would initially raise the cap on attorney’s fees to $30,000 and increase that to $34,000 by 2029. A cap on discovery fees, which are connected to the pre-trial research lawyers do to prepare cases, would be raised by $500 initially to $3,500 and increase to $4,500 by 2029.
The bill goes to the House chamber next.