QUESTION
Can my lawyer deduct the lien amount for the medical bills from my share of the settlement and not from the gross amount?
Asked on Nov 15th, 2013 on Personal Injury - Massachusetts
More details to this question:
I was just awarded small dollar amount in a personal injury case. My medical bills were paid by workers comp. My lawyer deducted the lien amount for the med bills from my share of the settlement and not from the gross amount. Can he do that?
13 ANSWERS
Auto Attorney serving Bloomfield Hills, MI
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Gregory M. Janks, P.C.
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In Michigan there is a formula, the Franges formula, that determines how monies are distributed/and to who, in such cases. Your attorney, if this is a Michigan case, should be calculating/following same.
Answered on Nov 27th, 2013 at 8:23 PM
All questions regarding your settlement are best presented and discussed with your counsel and not in message boards. Your counsel has far better knowledge of your case and your agreement with counsel than any message board participant can ever hope to have. In general terms, an attorney's lien is normally superior to all other liens against a settlement amount.
Answered on Nov 20th, 2013 at 4:27 PM
Yes, the lawyer can deduct lien amounts from the settlement left after deducting legal fees and litigation costs.
Answered on Nov 20th, 2013 at 4:27 PM
Personal Injury Attorney serving Charlotte, NC
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Paul Whitfield and Associates P.A.
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Pray tell what difference. If you owe the lien you owe the lien.
Answered on Nov 20th, 2013 at 4:27 PM
Ronald A. Steinberg
Absolutely. Why should he pay for it? He collected the entire amount from the insurance company, and so he should collect his fee from that amount (less litigation costs).
Answered on Nov 20th, 2013 at 4:26 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Whether he deducts it from the gross or your recovery, it is the same thing. He gets a percentage of the recovery based on the gross settlement. Your costs are recovered from the gross as well. You get what is left.
Answered on Nov 20th, 2013 at 4:26 PM
James Eugene Hasser
Yes. Read your contract with the lawyer. It will spell it out right there. That is standard. Good luck.
Answered on Nov 20th, 2013 at 4:26 PM
Personal Injury Attorney serving Kent, WA
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Law Offices of Wayne J. Wimer, Inc. P.S.
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Read your contingent fee agreement to see what the attorney is entitled to deduct.
Answered on Nov 20th, 2013 at 11:16 AM
1 Award
The distribution follows a formula found in the Wisconsin Statutes. The workers compensation lien is paid from the settlement proceeds after your recovery is reduced by the attorney fee and disbursements and you receive one-third of that net recovery. If there is money left over from paying workers compensation, it is yours.
Answered on Nov 18th, 2013 at 12:11 PM
Chapter 7 Bankruptcy Attorney serving Syracuse, NY
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Andrew T. Velonis, P.C.
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Yes, but he gets one-third of what he gets for you after the comp lien is paid and he also gets one-third of the comp lien, so check his math: Suppose the settlement is 9G and your medical expenses are 3G: his fee is one third of the 9, so that's 3. But: since he only got 6 for you, he's only supposed to take the third out of your share, so that's 2 for him and 4 for you. The comp insurer gets its 3, but they have to pay him one-third also, so that's 2 for them and 1 for him. So, he still gets his 3, but you get 4 and the comp insurer gets 2. But if he has negotiated with the comp insurer to reduce their lien, then the math changes so let him explain that to you.
Answered on Nov 18th, 2013 at 12:10 PM
Thomas Edward Gates
It does not matter whether he deducted the lien from the gross amount or from your amount of the settlement. You get the same amount.
Answered on Nov 18th, 2013 at 12:10 PM
NA richard@jandjlaw.com
Probably. What does your fee agreement say?
Answered on Nov 18th, 2013 at 12:10 PM
Typically, an attorney with a contingency fee gets paid a percentage of the gross amount collected. So, his or her fee comes out first, and then other liens are deducted. You may want to review the contingency fee agreement you have with this lawyer to confirm.
Answered on Nov 18th, 2013 at 12:09 PM