Legal Question in Civil Litigation in California

Interest on Settlement Payment

I was the Plaintiff in a lawsuit that was settled in my favor. There were two sets of defendants represented by different attorneys, but covered by the same insurer. At the Settlement Hearing, the Court ordered payment within twenty days of the Hearing. The first check was dated four days after the Hearing and the second check was dated eleven days after the Hearing. Forty days after the Hearing, or twenty days after the Court mandated date, my attorney advised me that both checks had arrived with apologies from both sets of defendants� counsel. They had �simply neglected to forward them.�

I understand that I am entitled to twenty days interest on the settlement amount. This amounts to several hundred dollars (at 10%) and I can certainly use the money. What approach should I use in demanding payment of the interest from these attorneys? Is there any Code(s) that will support my demand? Although I see this as the last resort, I am prepared to take these attorneys to Small Claims Court.


Asked on 5/04/00, 3:45 pm

2 Answers from Attorneys
Francis Doherty Doherty Georgeson & Kerley LLP

Re: Interest on Settlement Payment

Dear John:

I would let it go. It happens all the time. The lawyer would pay you without a judgment. its not worth the aggravation.

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Answered on 6/20/00, 2:14 pm
John Hayes The John Hayes Law Offices

Re: Interest on Settlement Payment

So basically your lawyer told you that the settlement checks for your case arrived forty days after the stipulated judgment was entered, which was 20 days after the date due. What should have happened is your attorney should have contacted the defendants' attorneys and inquired about the check when it did not arrive within the 20 days. If that had not resolved the issue, he should have filed a motion with the court requesting the court order payment and award you interest and attorney's fees payable by the defendants. A monetary award against an attorney, who is not a party to the action, which is meant to punish the attorney are called sanctions. Since no action was taken by you or your attorney at the time of the delay there really isn't anything you can do. The case was dismissed against the defendants when you settled the case. Of course there is no harm in trying to squeeze a little extra money. Either you or your attorney could write a demand letter to the defense attorneys stating your argument for 20 days of interest at the legal rate of 10% per year. If that doesn't work then you can either walk away or take them to small claims. Making the decision to drop the issue depends solely on how much time, effort, and money you want to spend chasing a few hundred dollars.

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Answered on 6/20/00, 4:58 am


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