Legal Question in Personal Injury in New Jersey

In NJ if there is a settlement on a personal injury case and then the plaintiff is told that there were additional medical costs does the plaintiff have to repay the additional expenses?

If the answer is yes is the attorney responsible to identify the costs and who was being compensated?


Asked on 11/03/10, 6:18 am

1 Answer from Attorneys

Lawrence Berezin Shapiro & Berezin, P.C.

Great, sticky, tricky question.

If your attorney agreed in writing with the health care provider to protect his bill from your settlement proceeds, and fails to do so; your attorney is responsible for payment.

If there is no "protection" letter, than you are responsible for payment of the doctor's bill. However, if you had a separate understanding (in writing) between you and your attorney about your attorney deducting the bill from your settlement proceeds, and doesn't notify the doctor in writing about the agreement, your attorney is responsible for payment of the bill either directly to the physician; or to you. Ultimately, the doctor must be paid for all reasonable and necessary services.

Keep in mind, unless you and your physician agreed otherwise in writing, you are responsible for your bill. Generally, in personal injury cases, physicians will accept a letter of protection from an attorney.

The question of additional medical costs is generally a mistake made by the doctor or by your lawyer. However, if the costs are reasonable, necessary, and related to your injuries sustained in the accident, you are responsible to the physician; depending on the above explanation about the letter of protection, and the agreement between you, your attorney, and your physician.

All of this discussion is moot, if there is insurance to pay your medical bills on a first party basis.

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Answered on 11/08/10, 2:37 pm


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