Isack v. Acuity
Annotate this CaseAn employee (Isack) was injured during the course and scope of his employment with his employer. Acuity, the employer’s workers’ compensation insurer, paid workers’ compensation benefits to Isack. Isack then retained attorney John Knight for legal representation in a suit against the tortfeasor and his employer. In turn, Acuity retained an attorney to represent its statutory rights of recovery and offset in Isack’s claim. Isack and the tortfeasor’s employer reached a litigation settlement. The trial judge subsequently awarded Knight one-third of Acuity’s recovery and offset award. Acuity appealed, arguing that the circuit court erred by giving Knight a thirty-three percent contingent fee from Acuity’s settlement portion because Acuity retained its own attorney to represent its interests. The Supreme Court affirmed, holding that the circuit court’s application of S.D. Codified Laws 62-4-39 and its allocation of the entire contingent fee to Knight was not clearly erroneous.
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