Background On July 12, 2000, James Baker was injured during the course of his employment when he stepped off a ladder, lost his balance, and twisted his left knee. Baker returned to work in October 2000, and, in November 2000, Dr. Woods believed that Baker had reached maximum medical improvement. After Continental and Baker were unable to resolve the dispute at a Benefits Review Conference, a contested case hearing was held before the Division on October 10, 2006. After the Appeals Panel declined to reverse the decision, Continental brought this suit for judicial review of the hearing officer's decision. Baker filed a general denial and asserted a counterclaim to recover statutory attorney's fees pursuant to Texas Labor Code section 408. 221(c).

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