Legal Question in Insurance Law in New Jersey

withholding money from settlement

I recently recieved a settlement from my insurance company for an accident where the other motorist did not have insurance. My lawyer withheld 1000.00 saying it was New Jersey law that they withhold this to make sure all medical bills were paid, although they had me sign a document saying that I agreed that any npaid bills were now my responsibility. I know that I have no outstanding bills because my insurance paid them all upfront. The lawyer has been holding this money know for over four weeks. Are they allowed to do this and is there a time limit on how long they can withhold this money that is by all rights mine?


Asked on 6/02/05, 7:21 pm

1 Answer from Attorneys
John Ducey Law Offices of John G. Ducey, PC

Re: withholding money from settlement

Yes....holding an escrow is normal. Everyone in NJ has co-pay and deductible that needs to be satisfied. There is no time limit on how long the escrow can be held. It depends on the situation, PIP arbitrations, IMEs etc.

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Answered on 6/03/05, 6:33 am


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