by Lauri » Thu Oct 01, 2009 10:32 pm
Last January, my dd was at fault in an accident. The insurance company offered to settle with the other driver, but the copy of the letter we received said that after acceptance, the insurer would deal with the worker's comp lien as well as the attorney general's lien. When I asked what that meant, I was told it was none of my business.
Ok, but my curiosity has been piqued...1) What are these liens? 2) Do they have anything to do with the other driver not only not accepting the settlement, but going through 3 attorneys (we got another copy of a letter sent to his new 4th attorney)?
Ok, but my curiosity has been piqued...1) What are these liens? 2) Do they have anything to do with the other driver not only not accepting the settlement, but going through 3 attorneys (we got another copy of a letter sent to his new 4th attorney)?
Posted: Thu Oct 01, 2009 11:15 pm Post Subject:
1) What are these liens?
There are right ones and left ones.I don't think that it was really "none of your business" it's just that it might take a little while to explain, it does not affect you in any way, so the person did not feel like explaining.
When dealing with an injury claim the person will have sought medical treatment. They usually don't have the money up front so the provider treats them and then looks for payment. If there is an at fault person, the medical provider will send that person's insurance a lien. This is a letter that state that the provider needs to be paid for the treatment that they rendered when any money is sent out. That is, the provider has a lien on the settlement. Just like a bank places a lien on a vehicle in return for paying the cost of the car. The injured party may also have an attorney who is charging 33% for their service. They need to be paid direct as well. Though I'd not call this a "lien". When settling with the injured person they need to be told up front that the agreed settlement amount is going to include payments on any liens. If there are $2000 in medical bills and the person settled for $10,000, they need to know they are not going to be paid the $10,000 direct. The adjuster is required to pay the provider that $2000 direct and the remaining amount can go to the injured party. Many people don't understand how a lien works so they may think... "I settled for $10,000 so I'm going to get $10,000". They may not even know about any medical or workers comp liens. The adjuster is telling them in the letter that the settlement includes taking care of those lien. In this case its $10,000 period... not $10,000 plus any amount to address those liens.
See... you did not need to know. :lol:
Posted: Fri Oct 02, 2009 01:15 am Post Subject:
Um...ok. So he claimed injuries under worker's comp (he was driving a company car) and that doctor needed to be paid; there's an attorney general's lien (?) and the insurance company's settlement offer being tendered to the attorneys that he hires.
I assume the liens were paid, but he wants more money than being offered and so rejects the settlement and he finds another attorney. The letters to each of the next 3 attorneys simply lists the same offer from the insurer.
They are no longer our insurance company, but I keep getting these copies of letters so of course I am intrigued.
Thank you.
Posted: Fri Oct 02, 2009 02:27 am Post Subject:
There is no settlement until both parties agree to an amount and usually there is a release signed. If he's not willing to "settle" then there is no settlement. The insurance company is not going to make a payment until the release is signed.
Why would he find another attorney? He could reject the settlement and the attorney should not settle for less then he and his attorney agree upon. Granted, the attorney could drop his representation if he thinks the client will just never settle but many will still want their 33% payment once, if ever, the claim is settled.
He's gone through 3 attorneys??!! Why?
Posted: Fri Oct 02, 2009 02:36 am Post Subject:
He's gone through 3 attorneys??!! Why?
My guess is that the injured party thinks they hit the lotto and each attorney when it comes to it does not agree.
Posted: Fri Oct 02, 2009 06:56 am Post Subject:
He's gone through 3 attorneys??!! Why?
Yes I'm curious too. Why?
Clearly he is also having to pay all of the 3 and also the current one. If there is no settlement and hence no payment, then why would he invest in attorneys.
Anyway, is there a case? I mean, what chances does Lauri have of getting out of this and how soon?
Posted: Fri Oct 02, 2009 01:32 pm Post Subject:
I am wondering why the revolving door of attorneys, too, but again, I get the MYOB. More background: my dd was waiting to turn left into her workplace when 'A' (other driver) rear ended her. As we are in Texas, he should have been found at fault. It was dd's first accident, so she was hysterical. When we arrived, he was there, dd, her boss and a co-worker, the investigating cop, my spouse and I and a neighbor who drove me . The other driver, 'A', hopped over his bumper and came over to shake my hand saying, "God Bless, no one's hurt. She said it was her fault."
We suspect he told her she was at fault and she didn't know any better.
Again, in front of all these witnesses, he hoisted the bumper onto his shoulder and shoved it into the trunk of his company's shuttle van. He also walked around and shook everyone's hand, repeating the God Bless line. At one point, the policeman said, "Got it. Her fault. Thanks." 'A' was intent on making this point. DD got ticket, 'A' left, neighbor followed me home while I drove the now-wrecked car.
A couple of weeks later, I got a copy of a letter from the insurance company, one they sent to 'A' 's attorney, requesting copies of medical bills, tax statements and pay stubs for verification. I called and asked what it was about and was told that he was claiming extensive medical bills and lost wages. I told them of his physical activity at the scene and offered my neighbor and dd's co-workers as witnesses (they later wrote statements attesting to what they saw, too).
Over the next couple of months 2 follow-up letters from the insurer requested the same info, noting that if it wasn't produced, the case would be closed. Then I received a copy of a letter to a new attorney about the liens and a settlement offer. By this time, we had a new insurer and I was told to MYOB. Since then, I have received copies of letters sent to 2 more attorneys, with the same monetary amount offered, but no mention of the liens.
I think you're right with his wanting to cash in. The attorneys he has hired are all TV Lawyers with loud splashy commercials about getting $250,000 to $500,000 settlements. This settlement offer is, um...low. Probably covers a couple of doctor's visits and x-rays. And I hope he didn't look at my 2004 Honda Civic DX and think "cha-ching!" :lol:
Posted: Fri Oct 02, 2009 03:05 pm Post Subject:
Now I understand a little more of who is who. I'm guessing that A has probably been uncooperative with this attorneys and is, I agree, looking for a big payday. The attorneys probably know they are not going to get much money and figure he's not worth dealing with. Injury attorneys take anything that walks in the door. 99% of the work is handled by paralegals in their offices anyway. The attorney spends most of his/her time on the bigger cases. I've dealt with people like this.... I also just keep sending the same offer to each attorney. Eventually it's either accepted or the statute of limitation runs.
Your last post hit every nail right on the head. Love those "Attorney XXX made me $500,000" commercials.
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