California, United States of America
The following excerpt is from Draper v. Aceto, 113 Cal.Rptr.2d 61, 26 Cal.4th 1086, 33 P.3d 479 (Cal. 2001):
A more reasonable interpretation is that the phrase "for the benefit of means "on behalf of," so that the employee's attorney is entitled to a fee based upon the services rendered on behalf of the employee. This is a more reasonable interpretation because it recognizes that if the employee's attorney, working for the benefit of the employee, secures a settlement, the circumstance that the amount of this settlement is insufficient to provide a share for the employee does not necessarily mean that the reasonable value of the attorney's services is zero. This interpretation also is more reasonable because it gives effect to the statutory priority granted to the payment of attorney fees by permitting the employee's attorney to be paid a reasonable fee "in the event that the judgment [or settlement] recovered should not suffice both to recompense [the employee] and to satisfy the employer's claim." (Quinn v. State of California, supra, 15 Cal.3d 162, 170, 124 Cal.Rptr. 1, 539 P.2d 761.)
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