Legal Question in Civil Litigation in California
State Compensation Insurance fund lawsuit
The company I work for has just been suied by a law firm after they purchased the right to collect on an unpaid Workers Compensation policy back in 2003. Is there any defense against this action?
2 Answers from Attorneys
Re: State Compensation Insurance fund lawsuit
We would need more information, especially what causes of action the law firm is suing for. Email us directly with more information if you would like prompt assistance.
Re: State Compensation Insurance fund lawsuit
The defenses would be based on the facts of the case...facts that you haven't provided. Like any other debtor collector, the law firm will have to prove that the company you work for owes the money. If it is a legitimate debt, there is no legal prohibition from the carrier assigning the debt to a collection agency or law firm.
There may be many defenses. The carrier may have misclassified the employers and charged a higher risk factor. If the debt was incurred in 2003, it may be close to the expiration of the statute of limitations. No matter what, you should seek the assistance of local counsel right away.
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