Motorcycle Accident and Settlement

**onlyonesmoke** · 04-24-2011, 09:18 PM

My question involves an injury that occurred in the state of: Maryland

I was involved in a motorcycle accident a couple of years ago that left me banged up pretty bad. I underwent several surgeries which my health insurance paid for. I've since recovered and now am at the table talking settlement. The health insurance has liens against me which were more than what my settlement amount is. This means that I'd get nothing.

My lawyer worked out a 1/3 split deal in which we all (myself, the lawyer, and the health insurance company) get a third. Sounds great! I received and signed a memorandum that detailed the breakdown of how much each of us would be getting. I received the check last week. Two days after I got it, the lawyers office calls me and says that they paid the health insurance company too little and that I needed to return the check so that they could fix it. This would short me about 9000 dollars. It sounds to me like they messed up and want me to pay for it. Is this normal practice? Why not just cancel payment on the check and cut me a new one? Why do I have to send the check back. They haven't even sent me a new memorandum with the new number breakdown. It just doesn't seem right. Am I wrong? Any suggestions???

jk · 04-24-2011, 09:32 PM

it should \be pretty simple.

what was the amount of the settlement? Divide that by 3. Is that what they sent you? Did it match what was on the memorandum?

**onlyonesmoke** · 04-25-2011, 01:25 PM

The original amount was for 100,000. SO, the breakdown should have been around 33,000 for each of us 3. I obtained this lawyer through my prepaid legal service at a discounted rate. I'm not 100% sure what the rate is, but I was to get slightly more because the lawyer wasn't taking a whole third. Supposedly... The memorandum did not have it @ 33000 each. The insurance co. got around 24 and some change, the lawyer got 25 and some change, and I got 49 and some change. The lawyers assistant said that she gave a third of what the lien is and not a third of the settlement. So the way she explained the process it just doesn't sound right. I have to send the check back to them before I get a new Memorandum?? They don't just cancel the check? What if I cash it, then what?? It feels like I'm forfeiting money because they made a mistake, and they don't want to tell me.

jk · 04-25-2011, 08:51 PM

. I obtained this lawyer through my prepaid legal service at a discounted rate.

regardless of what the prepaid legal service rate was, you agreed to paying the lawyer 1/3 when he negotiated the settlement. The hospital would get $33k and so would you.

The insurance co. got around 24 and some change, the lawyer got 25 and some change, and I got 49 and some change.

then why did you say this:

My lawyer worked out a 1/3 split deal in which we all (myself, the lawyer, and the health insurance company) get a third.

It feels like I'm forfeiting money because they made a mistake, and they don't want to tell me.

I just don't think you know what you were supposed to get. If not, it is impossible for you to say you got too much or too little. If the check is for an improper amount and you cash it, expect to owe whatever wasn't rightfully yours.

**onlyonesmoke** · 04-25-2011, 09:51 PM

That's the problem........ I got exactly what was on the Memorandum. That was the document stating what I was getting and how it was split. That is the ONLY document that I have received since this all began. Now they are saying that the memorandum was wrong????? Is that normal practice? This was not a rush job either. They've had this case for over 2 years, so I find it hard to believe that it was an oversight. Not with THAT amount of money. When I said that the lawyer worked out a 1/3 split, that was all discussion over the phone. He also stated that he would try to get a better deal, but that's where we stood. Then I received the Memorandum with different numbers which led me to believe that he indeed got a better deal. That's why I made the 1/3 statement.

At the end of the day, we NEVER discussed numbers as far as how much I would be getting or paying. That's why I didn't know the exact number originally. It was all detailed in the Memorandum that I later received and signed. I thought that was the officially document that told me how much money I was supposed to get. The one in writing that was signed, not the possibilities that we discussed over the phone. So, with that in mind, yes I do feel like I may be being taken advantage of because they are telling me that they made a 9000 dollar mistake and can't show it to me in writing. Is that common practice??

jk · 04-25-2011, 10:12 PM

At the end of the day, we NEVER discussed numbers as far as how much I would be getting or paying. That's why I didn't know the exact number originally

but unless you are completely unable to perform simple math you knew the memorandum was not what you were previously told, right?

If it was me, I would call them and say that you had signed the memorandum describing the disbursal of funds and the amount they sent you was proper according to that memorandum. Since you have not accepted any settlement other than the one described in the memo, does that mean they send the money back to the issuer and you start all over?

If you are willing to accept the $33k, just send the check back. If you aren't, tell them the settlement you agreed to was provided to you on the memo and if that is not how it will be disbursed, I guess it's time to start over on negotiations.

Be careful what you wish for though. If you shoot down the 3 X 1/3, there may be no settlement.

**That Guy** · 04-25-2011, 10:37 PM

Quoting onlyonesmoke

When I said that the lawyer worked out a 1/3 split, that was all discussion over the phone

Did you not sign a retainer/contingency agreement when you first hired them on?

**onlyonesmoke** · 04-26-2011, 05:19 AM

I knew that I would probably be getting around 33,000 in the settlement. He said that was what I would get at minimum, but he was still working for a better deal. So, when I got the Memorandum and the number was higher, I assumed the he did indeed get a better deal.

I did sign a retainer/contingency agreement.

My problem isn't with the amount of money that I am potentially getting or losing. The process that is taking place just doesn't make sense to me. Everything that I've ever seen involving lawyers usually involves some kind of paper trail. "Sign here, sign here, initial here." That kind of thing. So for them to CALL me to tell me to return the check with nothing in writing, it throws a red flag for me.

The check I received was issued from the lawyers office/ account not an insurance company or anything like that. If indeed this was an honest mistake, would it not make sense to cancel/stop payment on the check and at the very least send me something in writing stating such. Is it really common practice that I return the check BEFORE I get a new memorandum stating the "right" amount? THAT'S where my problem with this situation is. The process doesn't make sense to me.