H&P Law handles even the smallest Interpleader case the same way we would handle a large personal injury case: with integrity, diligence, and competence. We will make sure your company is represented in the same high-quality way every time in front of the court and other attorneys that you will have to work with again in the future.
We represent individuals, attorneys, physicians, and medical professionals in interpleader actions as a result of a personal injury action or due to multiple claims on a life insurance policy.
Personal Injury Settlements
If the interpleader is the result of a personal injury settlement, an “interpleader” action is filed in Court by an attorney or insurance carrier who has persons or entities (lien holders) claiming entitlement to proceeds in an amount that exceeds the available funds recovered through settlement or otherwise. This process is outlined under Nevada Rules of Civil Procedure 22.
The attorney or insurance carrier becomes the “plaintiff” in such a case and holds the funds in Trust or deposits the funds with the Court or “interpleads” the funds and files a “Complaint in Interpleader.” The Complaint is then served on all lien holders and usually the patient as well.
The attorney or carrier cannot make a pro-rata distribution of the funds without an agreement by all lien holders or a Court order. Under Nevada law, an attorney has a priority right to their fees and costs, but the attorney must still obtain approval of those fees and costs from the Court. The remaining funds are distributed to those lien holders/Defendants who have answered the Complaint.
Life Insurance Disputes
Here are a few things to keep in mind:
- Do not ignore the complaint.
- It is time-sensitive, so act fast.
- You may be the rightful beneficiary of life insurance money.
- If you do nothing, you could lose your right to get life insurance benefits.
This law firm’s experience in handling life insurance disputes can help you collect life insurance benefits that are rightfully yours. You might be entitled to life insurance benefits because a family member had life insurance and you are the beneficiary. We can help!
How We Help With an Interpleader Complaint
Imagine a process server knocks on your door and hands you a life insurance interpleader complaint. You are probably wondering what this is and what to do next. Almost everyone who hires us shares a deep frustration: the feeling that some faceless insurance company is intentionally trying to wear them down by making it impossible to get paid. Many of our clients are so emotionally spent by the time they reach us that they are ready to give up.
Despite mountains of golden promises, life insurance companies bank on this strategy to avoid paying claims. They know that many people will be too discouraged by the process and cost involved with finding and hiring a lawyer to fight back and will end up just walking away, sometimes leaving hundreds of thousands of dollars or more on the table.
With our simple process, most of our clients who recover from insurance companies get their money without ever having to leave home. Do not let what appears to be a daunting and expensive undertaking discourage you from pursuing what you know is rightfully yours. Our easy process is designed to give you more power with less hassle. If you’ve been stressing over what to do about your situation, take the first step and let us deal with it for you.
What Is a Life Insurance Interpleader?
A life insurance carrier will file an interpleader complaint they cannot safely determine who should receive death benefits. The complaint will list you and any other claimants to the policy as defendants.
The complaint is necessary because if the insurance carrier pays out benefits to one person, and it is later determined that they should have paid a different person, they can end up having to pay the same claim twice. In order to prevent this kind of double liability, insurance companies would rather have a court decide who should receive the death proceeds when disputes arise.
Most interpleader lawsuits are filed when competing claims are submitted after a person’s death, and both claimants have what appears to be a reasonable argument as to why the claim should be paid to them.
For example, one person may seek the death benefits by virtue of being the listed beneficiary, while the other claimant may argue that the document changing the beneficiary was coerced or forged, or that a certain law prevents the other claimant from receiving the funds.
Determining the Correct Beneficiary
Depending on the facts of the case, either claimant could be correct. So, rather than risk guessing wrong, the insurance company will deposit all of the death benefits with the registry of a court and force the competing claimants to fight it out before a judge decides who receives the money.
Other times, life insurance companies discover legal technicalities that make determining the correct beneficiary a question of law. For example, if a beneficiary of a life insurance policy is the ex-spouse of the deceased, the company cannot pay that person without risking the possibility of having to pay the contingent beneficiaries the same death benefit later.
This is because some laws terminate the right to benefit from a life insurance policy upon the filing of a divorce decree.
Legal Technicality Examples
An example of a legal technicality is if a beneficiary of a life insurance policy is not ruled out as a suspect in the death of the insured, the company cannot pay that person without risking the possibility of having to pay the contingent beneficiaries the same death benefit later.
A person involved in a homicide cannot benefit from the crime under “slayer” statutes. The point of this example is to show that there do not have to be competing claimants in order for an insurance company to invoke interpleader. It is appropriate in both cases.
There are many scenarios in which insurance companies may seek to interplead death benefits. The important thing to understand is that if you are named as a defendant in an interpleader lawsuit, there is a very good chance you have a claim to some or all of the money.
Contact a Lawyer if You’ve Been Served
If you have been served with an interpleader lawsuit (often called a Complaint in Interpleader), we strongly recommend that you immediately contact a qualified life insurance lawyer to help you through the process.
There are strict time requirements for taking action, and it is important that you do not wait to seek help. If you do not respond to the Complaint by filing an answer, you will not be allowed to recover any funds.
Our attorneys will review your case free of charge and advise you on the best possible action to take. If we take your case, our mission will be to get you your money as fast as possible.
The Cost
The cost of hiring an attorney prevents many people with valid claims from collecting the money they are rightfully owed. We do not think that is fair. So, we will review your case free of charge, and if we accept your case, we will not charge you a dime unless we win.
At the end of the case, we will take a percentage of the money we recover for you. If we lose, you pay nothing. This gives us all the motivation in the world to win your case.
Our Four-Part Program
A four-part program exists to ensure the best results and the maximum benefits:
- Quality
- Initial evaluation
- Object to excess fees or costs
- Quick resolution
1. Quality
Your case will be handled with direct supervision by an attorney with experience in personal injury cases. Every document is reviewed by the attorney before it is filed or served on the other parties. Maximum recovery will be pursued, but we will not waste your time or money.
2. Initial Evaluation
An initial evaluation of the anticipated recovery will be made to determine whether filing the Answer is warranted. Here are some considerations:
- It costs your company $233.19 to file the answer (filing fee: $223 + efiling fee: $3.50 + Wiznet Credit Card Fees $6.69)
- Attorney’s fees: 25%
- Additional costs ($3.50 fee on each document filed)
Sample. How we evaluate your recovery:
- Minimum recovery if all providers answer the Complaint:
| Settlement Funds Recovered | 10,000.00 | ||
| Minus Atty Fees: 1/3 | (3,333.33) | ||
| Minus Atty costs: | (300.00) | ||
| Available Funds to be distributed to providers: | $ 6,366.67 | ||
| Lien amount | Pro–Rata Percentage | Pro–Rata Amount | |
| Provider 1 | 1,700.00 | 14.9780% | 953.60 |
| Provider 2 | 900.00 | 7.9295% | 504.85 |
| Provider 3 | 2,500.00 | 22.0264% | 1,402.35 |
| Provider 4 | 5,500.00 | 48.4581% | 3,085.17 |
| Provider 5 | 750.00 | 6.6079% | 420.70 |
| Total Liens (a) | $ 11,350.00 | 100.0000% | $ 6,366.67 |
- Anticipated maximum recovery because some providers will not answer the Complaint and will not be entitled to a pro-rata share of the funds:
| Lien amount | Pro–Rata Percentage | Pro–Rata Amount | |
| Provider 1 | 1,700.00 | 17.5258% | 1,115.81 |
| Provider 2 | 900.00 | ||
| Provider 3 | 2,500.00 | 25.7732% | 1,640.89 |
| Provider 4 | 5,500.00 | 56.7010% | 3,609.97 |
| Provider 5 | 750.00 | ||
| Total Liens (a) | $ 11,350.00 | 100.0000% | $ 6,366.67 |
What Is Your Minimum Recovery?
Is it worth pursuing?
What Is Your Minimum Recovery to Make It Worth Pursuing?
- Sample recovery with 1 provider:
| SOLO | |
| Provider 1, lien recovery | 1,115.81 |
| Answer fees | (233.19) |
| Misc costs: | (250.00) |
| Recovery: | $ 632.62 |
| H&P Law fee @ 25% | (158.16) |
| Net Recovery | $ 474.47 |
- If H&P Law represents more than one provider in the same case, the lien holder benefits by sharing costs equally with the other represented lien holders. Each additional defendant adds $30 to the filing fee:
- Sample recovery with 2 or 3 providers and cost sharing:
| 2 providers | 3 providers | |
| Provider 1, lien recovery | 1,115.81 | 1,115.81 |
| Answer fees | (132.05) | (98.33) |
| Misc costs: | (250.00) | (250.00) |
| Recovery: | $ 733.77 | $ 767.48 |
| H&P Law fee @ 25% | (183.44) | (191.87) |
| Net Recovery | $ 550.32 | $ 575.61 |
How We Pursue Your Claim
The difference that legal attention makes
3. Objecting to Excess Fees and Costs
We will represent you and oppose an Attorney or other lien holder who attempts to recover more than their fair share. This involves:
- Objecting to requests for excess costs
- Objecting to the addition of excessive interest in claimed lien amounts
4. Quick Resolution
We will attempt to obtain the quickest resolution possible. Most interpleaders are resolved via a Motion for Distribution after all the Defendants have been served and have either answered or defaulted. Here is what you can expect from your claim when you work with us:
- Overseen by an attorney
- Deadlines calendared and followed
- Motions for Distribution filed early
- You will not have numerous pending matters
- Move to allow deficiency billing
Our Fee Agreement
What we offer is simple and sensible. Here is how our agreement works:
- 25% contingency fee, plus costs, taken at the end of the case;
- H&P Law has the authority to accept service for Interpleader cases only (saves attorney costs, which reduce your recovery);
- If Provider, or Provider’s Resident Agent, is served with the Complaint and Summons, make a note of the date it was served with the Complaint and Summons (such as writing it on the summons received);
- Provider faxes, delivers, or emails the Complaint and Summons to H&P Law so that the case is evaluated and responded to, if necessary, in a timely manner;
- Provider contacts the office to arrange for payment via credit card, deposit a retainer, or pay the $250.00 agreed-upon fee within seven (7) days of the date of service of the complaint and summons; and
- Provider gives H&P Law the authority to settle for a pro-rata share.
Contact H&P Law Today
H&P Law is a law firm dedicated to the highest levels of customer service and the highest principles of legal practice. We are committed to providing our clients with top-tier legal assistance without top-tier pricing.
In addition to Interpleader, we focus on the following practice areas:
- Representation in Bankruptcy Court when a Patient files for protection
- We have recovered doctors’ full lien amounts in some cases
- Personal Injury/Wrongful Death
- Traffic Tickets/Criminal Defense
- Defective Products and Dangerous Drugs
- Workers’ compensation
- Social Security Disability
Contact our team today to get a free evaluation and advice on your next steps.
