QUESTION

Does a Lawyer on notice of lien on settlement in a civil case have to communicate with the lien holder?

Asked on Jul 20th, 2012 on Personal Injury - New Jersey
More details to this question:
It's been 60 days since settled and notified, how much longer until we assume we are being ignored?
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23 ANSWERS

Automobile Accidents Attorney serving Portage, MI
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It depends on the specific circumstances of the claim. A lawyer and the client ignore a lien at their peril.
Answered on Jun 28th, 2013 at 10:30 PM

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It depends if it truly is a lien and whether it is statutory or not. Not an easy answer for an email. There are lots of collection agencies attempting to do this in NY even though they cannot by statute but, a lawyer must be mindful of the rules of professional conduct as well. Good luck.
Answered on Aug 13th, 2012 at 11:40 AM

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Personal Injury Attorney serving Lake Worth, FL
2 Awards
Yes, the lawyer should communicate with you. You should call them. They will typically respond quickly.
Answered on Aug 09th, 2012 at 5:48 PM

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Car/Auto Accident Attorney serving Hacienda Heights, CA at Gary Lee Platt
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There is no set period of time, the lawyer must communicate with the lienholder within a reasonable time under the circumstances. The case may be settled, however, it's possible the settlement check hasn't been sent out yet, hasn't been signed by the client, and hasn't been deposited yet, so the money isn't yet available to pay all the liens. I would send a polite reminder to the lawyer informing him/her that you are aware the matter has settled and your lien needs to be satisfied.
Answered on Aug 09th, 2012 at 5:47 PM

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Personal Injury Attorney serving Redmond, WA at Tuttle & Associates
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I am not aware of any such requirement.
Answered on Aug 08th, 2012 at 9:11 PM

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Dennis P. Mikko
An attorney who is aware of a lien on a settlement should not disburse the settlement without first recognizing the lien. However, until there is a distribution, the attorney has to do nothing more.
Answered on Aug 08th, 2012 at 8:17 PM

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Personal Injury Attorney serving Charlotte, NC at Paul Whitfield and Associates P.A.
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Lawyer doesn't have to do anything but he ought to do so. Otherwise he might subject himself and the client to some liability. Obviously depends on precise circumstances and any contract obligations. Disbursement might be held up for Medicaid or medicare or some such why not just ask the lawyer whats up.
Answered on Aug 08th, 2012 at 8:12 PM

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Personal Injury Attorney serving Indianapolis, IN at Bernard Huff
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A copy of the lien should be sent to the lienholder for the notice to be effective and honored.
Answered on Aug 08th, 2012 at 8:11 PM

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Criminal Defense Attorney serving Montrose, NY at Law Office of Jared Altman
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Yes. A lawyer must notify the lien holder.
Answered on Aug 08th, 2012 at 7:35 PM

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Criminal Defense Attorney serving Anderson, SC at The David F. Stoddard Law Firm
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There has been some difference of opinion on this issue, but most authorities agree that if the lawyer has been put on notice of the lien, the lawyer has a duty to settle the lien out of the proceeds of the settlement. The length of time it takes to settle a lien depends on the type of lien.
Answered on Aug 08th, 2012 at 7:24 PM

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Child Custody Attorney serving Malvern, AR at Law Office of Gregory Crain
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Only when settled. Now.
Answered on Aug 08th, 2012 at 2:28 PM

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I don't believe there are any set time frames for when a lien holder should have communication with a lawyer on notice of a lien, etc. Certainly it takes some time for a lawyer to collect the funds and distribute them. However, 60 days does seem to be quite long. I would attempt to contact them and inquire about the status of the funds. If the lawyer were on notice of the lien, he/she would have a duty to secure those funds on your behalf.
Answered on Aug 08th, 2012 at 2:19 PM

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Employment Law Attorney serving Beverly Hills, CA at Dordick Law Corporation
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That is far too long. You should send a letter via certified mail or some other overnight service that documents delivery and make a written demand for payment of the lien.
Answered on Aug 08th, 2012 at 2:17 PM

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Ronald A. Steinberg
If the lien is a valid lien, then it must be recognized during the wrap up of the civil case. The amount of time involved depends on who is the lien holder. For example, Medicare liens will take many months to conclude, and you just have to wait.
Answered on Aug 08th, 2012 at 2:14 PM

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It depends what kind of lien you hold.
Answered on Aug 08th, 2012 at 2:10 PM

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Yes, your lawyer should be communicating with the lien holder. Third party lien holders have subrogation rights and can seek reimbursement from the client for the amount of the lien, minus certain deductions. If the third party lien holder is a government entity such as Medi-Cal or Medicare then the lawyer must be in contact with them as the lawyer could potentially be liable personally to the government entity if he fails to satisfy the lien. What you need to do is this: figure out how much the lien is for, add it to the amount of costs and fees your lawyer spent/charged, and then subtract this number from the settlement funds. Whatever is left over is your money and you are entitled to it right away. The lawyer is not allowed to hold anything against your demand that exceeds the amount of his costs and fees and any liens.
Answered on Aug 08th, 2012 at 1:40 PM

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Appellate Attorney serving Grosse Pointe Farms, MI at Musilli Brennan Associates, PLLC
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Generally if the lawyer was on notice he should deal with the noticed lien. If you did not properly perfect the lien, he could ignore you on instructions from his client. I would suggest you engage an attorney immediately as, generally, once the money is disbursed it is gone.
Answered on Aug 08th, 2012 at 1:28 PM

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Personal Injury Attorney serving Richmond, VA at Blank & Marcus, LLC
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Yes the lawyer does and you have to wait until a Court says you do not have to wait any longer. I am certain your lawyer wants to get an answer as much as you do. He can file for a hearing in court to determine amount and validity of the lien, but that will probably cause more delay.
Answered on Aug 08th, 2012 at 1:24 PM

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Legal Ethics and Professional Responsibility Attorney serving Las Vegas, NV
Partner at Selik Law Offices
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The Attorney is required to communicate with the lien holder on distribution. 60 days might be a long time, depends on the facts.
Answered on Aug 08th, 2012 at 1:22 PM

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Business Attorney serving North Andover, MA at Law Offices of Andrew D. Myers
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The answer to your question would really depend on the type of lien. For example certain liens like Medicaid or other government liens bring criminal liability for failure to pay. Other liens, provided by statute can bring civil liability. Other papers that people send lawyers calling them liens and even putting the title lien on top are not really liens. So, my advice is to stay in touch with the attorney, call them and ask for an update. Never assume anything. Make all best efforts to ascertain status.
Answered on Aug 08th, 2012 at 1:16 PM

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Tax Attorney serving North Smithfield, RI at The Law Offices of Mark L. Smith
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You may be one of many lien holders and if Medicare is involved you could wait 9 months. That is because the check from the insurance company will be made out to the injured party, the lawyer and medicare. That is an absolute nightmare. The lawyer will want a final demand letter from Medicare.
Answered on Aug 08th, 2012 at 1:12 PM

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If your lawyer is not responding to your calls, you can contact the state bar for help.
Answered on Aug 08th, 2012 at 1:11 PM

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Bankruptcy Law Attorney serving Livingston, NJ
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Yes they do have to communicate, but it is usually 30 to 45 days.
Answered on Aug 03rd, 2012 at 9:50 AM

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