Disab.insur/Occupational Hazard Insur.

[R.C.frustrated]

courier
I live in Kansas, and am very frustrated with my husband's disability/Occupational Hazard insurance company.

My husband had a head injury last April & then in May. He is an owner/operator cattle truck driver.

I hired a attorney to represent my husband & I last October in a disability/Occuptional hazard claim. The attorney went for full disability, when we just wanted temporary. We wanted a temp. income until he could work again. After the attorney filed a claim with the insurance company, it threw it into immediately litagation, and we got no where.

So two months ago, after discovering this information, I released him of all legal representation. I sent you a certified letter with a return receipt. So now I have been dealing with the insurance company myself.

The question is: The insurance adjustor/president of the company & I came to a settlement. They hired a attorney to draw up the legal papers. releasing them of any further claims. My husband is supposed to sign & return. Then we will receive the settlement check.

-Now the insurance president is saying I need to obtain a letter from the past attorney, saying upon the settlement betw. the insurance company & my husband, he releases the insurance company of any legal fees/expenses. Well, why do I need to get my past attorney involved again ? I released him of our legal representation before a agreement has been established. I feel the release letter I sent him should be adequate for the insur. company. But the insurance is disagreeing. The insur. company is trying to change our original agreement. HELP....What is my rts.

 

[ALawyer]

You ask a good question, and there is a real reason. It is that in many states there is an attorneys lien that attaches to proceeds in a lawsuit or recovery, and if the insurance company paid you, and there was such a lien, they'd have to possibly pay twice.

Let's say the attorney has been paid in full. In that case he'd have no lien on the proceeds. But the insurance company does not know that and will not take your word for it as they have been burned too many times.

BUT suppose you did not pay the attorney in full. Say you retained the lawyer on a contingency basis, and then fired him. Suppose you did so just because the payment was coming and you wanted the lawyer to get no part of it. (I am not saying that's what YOU did, but there are people who do exactly that.) He has a claim on the proceeds for the work he did. How much that claim is is unclear, and in many states there are local bar committees that help resolve disputes over attorney fees.