Legal Question in Workers Comp in Iowa

workman's compensation checks

Is it standard practice,for my checks to be made out to myself,and the law practice I hired (for settlement),since all they do ,is forward them to my address.They get paid on a contingency basis when settlement is made(which hasn't happened yet).


Asked on 10/17/08, 10:27 am

1 Answer from Attorneys

Stephen Lombardi Lombardi Law Firm

Re: workman's compensation checks

I'm not sure of the firm's reasons but I too have the workers� compensation weekly indemnity checks mailed to the law firm so that we are better able to track how many checks were received. That establishes an accounting allowing us direct access to the information without having to ask the client or the insurance company. It does delay to some extent the receipt of the check by the client, but clients in the past have not been good record keepers and we are unable to rely on their information. The insurance company claim departments are extremely slow in getting us that information when the client�s case demands we do so. If something happens that checks stop, without having direct access to the information, then the delay is usually longer to gather the necessary information.

With the final settlement in personal injury and in workers� compensation cases the check is again sent directly to the lawyer. When the final settlement check arrives lawyers have to account for how the money will be disbursed and there are settlement documents that will need to be properly signed and sent back to the right parties. As for the money there is a disbursement sheet that needs to be drawn up and signed. While the documents are being processed the check will be deposited into the lawyer's trust account. That trust account is regulated by the Iowa State Bar Association. The Iowa Bar Association has set up a Client Security Fund that protects the client. If a lawyer were to steal your money that was in his or her trust account the Iowa Bar Association would pay it back through the Client Security Fund. The balance of the Client Security Fund is monitored and the lawyers are annually assessed to maintain a proper balance in the fund.

So I see nothing wrong with your attorney's doing it this way. But ask them why they are doing it. You should get a straight forward answer. And in the end you should receive an accounting. The Bar Association encourages all clients to keep an eye on what is going on and to ask for clarification. If your lawyer refuses that isn�t a good sign and it should be brought to the attention of the Iowa Bar Association.

Does that answer your question?

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Answered on 10/18/08, 5:20 am


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