3rd Party Case Lien and Credit (California)

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3rd Party Case Lien and Credit (California)

Postby injuredone on Thu Feb 21, 2019 1:17 pm

1) 3rd Party Case settled- Say the net check is 200K about a decade ago
2) WC stops and IC gets "Credit"
3) WC case settles few years later- 100% PD
4) WC AA leaves IW after collecting large fees due to conflict on fees on "credit" amount
4) Lien not settled
5) Credit Exhaust based on PD only
6) PD and medical restart- However, several issues pending such as medical bills, attorney fees and others as part of "credit exhaustion"
7) Civil case (CC) attorney ready to settle lien with WC DA. Say the lien was 140K, CC attorney collects 40K with balance lien of 100K- Say DA agrees with 50K and balance 50K to IW.

Questions

1) How should settlement document be legally worded for Lien settlement so that no other WC benefits are affected after IW collects 50K (iW has CC attorney out of state but no WC AA)
2) PD and medical is ongoing- Unlike Credit, Lien settlement for 50K should not affect ongoing PD and medical- How should the legal wordings be done in settlement so that DA can never stop ongoing PD, medical and others.
3) Same with All past, current and future WC benefits- What should be the legal wordings so that none of the pending or future benefits are affected for IW by this settlement.

So in summary, looking for legal wordings to ensure no WC benefits are affected AND PD continues after Lien settlement.

4) Any other or unknown surprises that will occur after IW collects say 50K and DA 50k from Lien settlement.
5) I am assuming Lien settlement say of 50K should not increase "Credit" from 200 to 250K- Otherwise, DA can stop PD. How should the settlement word in legal terms to ensure this if it can occur.
6) Any other missing point
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Re: 3rd Party Case Lien and Credit (California)

Postby LawAdvocate on Thu Feb 21, 2019 2:46 pm

You need to consult an Information and Assistance officer or hire an attorney/hearing representative, because I do not believe anyone in the forum is going to risk legal malpractice without having the full file and the "moving parts" to advise you.

Sorry, but the risk is too big. I have some thoughts, but I would require you retain my firm and we would take a fee.
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Re: 3rd Party Case Lien and Credit (California)

Postby vampireinthenight on Fri Feb 22, 2019 9:51 am

I have to agree that if you are looking for specific language, you need to deal with a real live person to get it done. Some of your history does not make sense to me. You stated that the credit was exhausted but then you are worried about a (new?) credit against benefits, so that doesn't make sense.

You state that both the civil and WC cases have settled, but then talk about another settlement. Only the lien is being settled?

The civil case settled a decade ago but the WC lien in the civil case is still not resolved? That makes no sense. Also, it makes no sense that lien funds would be given to the IW. Something very complicated is going on. If it has been ongoing for 10 years, then the one thing that does make sense is that this has taken a very unusual and convoluted path.
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Re: 3rd Party Case Lien and Credit (California)

Postby jpod on Fri Feb 22, 2019 12:32 pm

Agree you need a person knowledgeable in subrogation.

The only thing I can think of to explain the sequence presented is the civil case settled, perhaps with a check that requires plaintiff and WC lien claimant to agree on how it is to be allocated before the funds can be dispersed.

I''m guessing the third party wanted out - they put up the $200K that CC atty or lien claimant holds (hopefully in a trust account)??? Don't understand why CC atty and/or WC lien claimant would sit for ten years on this without court intervention though.

You need someone as Vampire and LawAdvocate suggested. It sounds like LawAdvocate would at least entertain taking your case on so consider hiring him.
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Re: 3rd Party Case Lien and Credit (California)

Postby sbradford on Mon Feb 25, 2019 9:31 am

Third Party cases can be very confusing and costly if not handled timely! Peter Fitzpatrick, Esq has extensive experience with civil litigation, subrogation, and he will be happy to answer your questions regarding credit issues. He can be reached at Bradford and Barthel's Ontario office 909) 476-0552.
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Re: 3rd Party Case Lien and Credit (California)

Postby injuredone on Sat Mar 16, 2019 12:05 pm

DA/IC took the entire credit of 3rd party settlement- The net check received from Civil case settlement was credit to IC/DA. Basically civil case was a washout. There were multiple issues in resolving Lien at the time of civil case settlement (some body part a part of cc but not WC and several other). CC attorney kept the Lien amount in Escrow after collecting his fees.

If Lien from 3rd party settlement remains in Escrow with CC attorney for a decade, does IC/CA still have any claim on it? Can CC attorney release the entire amount to IW?
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Re: 3rd Party Case Lien and Credit (California)

Postby vampireinthenight on Mon Mar 18, 2019 11:35 am

The only reason for it to be in escrow is if someone has a claim on it. The attorney holding it should know. And I would say said attorney should resolve it, but I guess that's not happening fast. Good example of why it is best to resolve liens at the time of settlement.
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