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javanda · Oct 24, 2007, 07:25 AM

Is there a new law that just passed that will allow an insurance company to protect the attorney, by putting a lien on your settlement check. Even when the attorney has been fired, and sent a withdraw to the insurance agency. Is this a new law?

excon · Oct 24, 2007, 07:45 AM

Hello jav:

What state do you live in, and tell us the whole story? That way we can really be of assistance.

excon

javanda · Oct 24, 2007, 08:04 AM

Originally Posted by excon

Hello jav:

What state do you live in, and tell us the whole story? That way we can really be of assistance.

excon

I live in Georgia I called my attorney to review my case she was very rude and hung the phone up on me in the middle of our conversation. I sent her a fax explaining to her that her behavior was rude and unprofessional, and her serviced are no longer needed. My case has already a offer. I do wish to pay her for her services however she has failed to fax her bill to the insuance agency and stated she is putting a lien on my settlement even though she sent a withdraw to release herself as my attorney. She told the insurance agency that there is a new law to protect attorneys and she could not proceed to relaese my check. I think she is being unethical

excon · Oct 24, 2007, 08:26 AM

Hello again, jav:

I don't think there are any new laws. Apparently she's already done the work as there's an offer that's been accepted. She's just looking out for her interests. Firing her AFTER she's done the work isn't cool.

Most of the time, the attorney will get the settlement check made out to him. He cashes it, takes his fee and sends the rest to his client. He doesn't send a bill to the insurance company.

I don't blame her for securing her money. I wouldn't rely on you to pay the bill either.

excon

ScottGem · Oct 24, 2007, 08:46 AM

I agree with excon, there isnt'a any "new" law. An attorney has always had to right to place a lien on a settlement to protect their interest. Most attorneys work on a contingency basis meaning they take a cut (generally a third) of whatever settlement you get. Once an offer is made and accepted you owe that amount. If you fire the attorney before the offer is made and accepted, the attorney could then bill you their hourly rate for the work they did. And they could attach the settlement to ensure they get paid.

Normally the attorney gets the settlement check, but if you report to the insurance company that you have fired the attorney they have to make the check to you. Therefore, the atty has to file a lien to ensure they get paid.

None of this is new, its SOP!