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Should attorney refund his % of any LTD or SSD that has to be repaid?

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What is the name of your state (only U.S. law)? Georgia

My mom retired early (age 59) from her job as a Special Education School Bus Driver in 2013 due to several health-related issues. Her attorney pursued a Workers Comp claim on her behalf and succeeded in negotiating a $60k settlement. Then he filed a claim for STD and LTD and the LTD claim was finally approved in August 2014. LTD paid a lump sum of $18k upon approval and the attorney received 20% of that amount.

While the attorney was pursuing the STD and LTD claims, I helped my mom file a Social Security Disability claim without any legal assistance. Her SSD claim was approved and they back-dated the start of benefits to Sept 2013. As a result, her first SSD check was around $12k and they paid it in October 2014.

Due to the start date of her Social Security Disability, she now has to repay the LTD insurance company for any LTD benefits that covered that same period. The total she has to repay is about $11,700. The attorney received $3,600 of the $18k initial LTD payment awarded. Since she now has to repay $11,700 of that $18k, should her attorney refund the 20% her was paid on the $11,700 she is required to repay? Or is it fair (and ethical) for him to keep $3,600 of the $6,300 LTD ($18k minus $11,700 repayment)?

In my opinion, it only seems fair for him to refund 20% of $11,700 (approximately $2,340) since she did NOT get to keep those LTD benefits. He would still get his 20% of the LTD benefits that she actually got to keep.

Please advise.
 


Was the attorney aware of your activities?
Yes, the attorney knew that she was applying for Social Security Disability. He expected her initial claim to be denied and then he would handle the appeal. But her initial app was approved against the odds.

When she initially notified him that LTD wanted their money back, he told her that she should never have told them that she got it! That would have been fraud and she signed an agreement, with his knowledge, that she would notify them if SSD was approved, the effective date and amounts paid to her. So he basically told her that she should have lied and, in doing so, commit a felony!
 

Zigner

Senior Member, Non-Attorney
The attorney did the work and deserves to get paid. It is totally ethical for him to keep his earned fee.
 

Zigner

Senior Member, Non-Attorney
Even if his earned fee was contingent upon the amount she was awarded...which was greatly reduced by the repayment?
She WAS awarded the amount. The repayment of that amount doesn't change the fact that she was awarded it.
 

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