Legal Question in Workers Comp in California

Re: Compromise and release

The term "new money" is a favorable term for you and your settlement. Often times after your temporary disability has been paid the insurance company begins paying you permanent disability. The law requires them to do so. Once the doctor determines that you are "permanent and stationary" or you have reached "maximum medical improvement" your permanent disability payment should begin.

Whenever your case is settled, the insurance company will settle your case based on the permanent disability given you by the doctor. The carrier will settle and will deduct any "permanant disability" payments paid to date. They will also deduct any overpayment of temporary disability they have paid.

When the doctor makes the final whole person impairmant (permanent disability) determination he/she will also determine how long you should have been totally temporarily disabled (TTD). If the carrier has paid any TTD for periods over and above those given by the doctor, this would be a TTD overpayment. If the carrier paid any permanent disability, the carrier will deduct these amounts from your settlement amount.

"New money is the settlement amount you will receive after any deductions for any permanent disability payments or for any "overpayment of TTD. There will be a deduction for your attorneys fees if you have an attorney.

In your example of $10,000 this is money payable directly to you less attorney fees. If you do not have an attorney, the entire $10,000 would go to you.

If you have an attorney, they will charge a percentage of your settlement. You should consult with your attorney to find out if the carrier is paying you a sufficient amount and to find out if the settlement includes a provision for "lifetime" future medical care.

These cases become quite complicated and you should not try and settle the case without a consultation from an attorney. If you do not have an attorney you may contact me directly and will be happy to give you a free consultation and evaluation of the true value of your case. Lets face it, the insurance companies try and "minimize" the value of these claims and don't always look out for your best interest.

Good luck on your case and you may contact me at: the address below or email me at

[email protected]

my secondary email address is: [email protected]