Archive for the ‘Attorneys' Fees’ Category

The New Hampshire House Judiciary Committee reviewed and recommended a bill recently pertaining to contract, Medicaid or statutory subrogation rights of subrogation for “”reimbursement of medical expenses” against plaintiff’s recovery. The proposed bill requires these subrogated entities to pay costs and attorney fees to the injured party “as justice requires”. The bill does not give any direction on how the court should divide the proceeds other than “as justice requires”. However, the bill does provide a cap and states the insurance carrier, medical provider, or the state shall not be awarded more than two thirds (2/3) of the amount claimed. The bill would apply to health, auto medical payments and worker’s compensation lines of coverage. The effective date of the bill if passed would be January 1st, 2011.

Please see the following 6th Circuit Decision brought to our attention by Daran P. Keifer, Esq. of Kreiner & Peters Co. L.P.A.  The decision highlights that funds do not need to be maintained in order for a plan to seek reimbursement and that the Plaintiff attorney is personally liable for the percentage of reimbursement equal to his attorney fees.

6th Circuit Decision

Wyoming’s House Bill sought to amend worker’s compensation statutes reducing subrogation recoveries for the injured party’s attorney’s fees. The bill ordered “Any recovery by the state shall be reduced pro rata for attorney fees and costs in the same proportion as the employee is liable for fees and costs.”

Kentucky House Bill seeks to reduce worker’s compensation recoveries for attorney’s fees.

The Texas Made-Whole Rule, adopted in Ortiz v. Great Southern Fire & Casualty Insurance Co., no longer applies to cases where the Plan disclaims the rule and requires full reimbursement in the plan document. 597 S.W.2d 342, (Tex. 1980). In the Ortiz case the insurance carrier relied upon arguments made in equity. The court held that health plans do not have an equitable right to recovery until the plan beneficiary is fully compensated. Id. Read more