Amy McGhee v. Tots and Teens Pediatrics, et al.

Pursuant to Tennessee Supreme Court Rule 51, this workers’ compensation appeal has been referred to the Special Workers’ Compensation Appeals Panel for a hearing and a report of findings of fact and conclusions of law. The Employee alleged that she was injured in the course and scope of her employment with Employer in December 2005. Employee retained the law firm of PryorParrott PC in December 2005 to represent her. They filed a claim with the Department of Labor, but benefits were denied. An action was then filed on Employee’s behalf in the Chancery Court of Campbell County in January 2007. In March 2009, the Chancery Court granted PryorParrott’s motion for leave to withdraw and granted it a lien for expenses in the amount of $1,146.38 and a lien for attorney’s fees in the amount of 10% of any benefits recovered by Employee. Employee then retained attorney David H. Dunaway to represent her. Dunaway ultimately settled Employee’s workers’ compensation claim for a lump sum payment of $100,000. In December 2010, the case was set for settlement approval in Chancery Court. Dunaway, on Employee’s behalf, voluntarily dismissed her Chancery Court case and immediately filed a joint petition for approval of the settlement in the Circuit Court of Campbell County. The Circuit Court approved the settlement, awarded total attorney’s fees in the amount of 20% of Employee’s recovery, and ordered Dunaway to hold in trust the fees pending resolution of PryorParrott’s lien claim. PryorParrott later moved the Chancery Court to set aside the voluntary dismissal, and that court granted the motion. At a later hearing in September 2011, PryorParrott and Dunaway submitted to the jurisdiction of the Chancery Court to determine disputes related to PryorParrott’s lien and the division of fees. The Chancery Court determined that PryorParrott was entitled to a fee of 10% of the settlement, or $10,000, and expenses of $1,146.38, and ordered Dunaway to