Richard Harris Law Firm – Interpleader

Richard Harris Law Firm 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 to the Court and to other attorneys, with whom you will have to work with 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.

What’s an Interpleader?

Personal Injury Settlements:

If the interpleader is as a result of a personal injury settlement, under Nevada Rules of Civil Procedure 22, 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, files an “interpleader” action in Court.

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 also.

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 still has to 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 to life insurance money.
• If you do nothing, you could lose your right to get the 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!

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 if 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.

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.

Another 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.

If you have been served with an interpleader lawsuit (often times 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.

For Providers:

A four-part program – 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. Is it Even Worth Pursuing?

An initial evaluation of the anticipated recovery will be made to determine whether filing the Answer is warranted.

• 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

A. Minimum recovery if all providers answer the Complaint:

B. Anticipated maximum recovery because some providers will not answer the Complaint and will not be entitled to a pro-rata share of the funds:

¹ Attorney’s lien for fees and costs have higher priority than medical liens. Standard fee arrangement varies, but usually is 30%, 33.33% or 40%
² Cost amounts are variable depending on each case
³ Calculated by dividing the Provider’s lien amount by the total amount of all liens.
⁴ Calculated by multiplying the available funds to be distributed by the Provider’s pro-rata percentage share
⁵ Calculated by dividing the Provider’s lien amount by the total amount of all liens.
⁶ Calculated by multiplying the available funds to be distributed by the Provider’s pro-rata percentage share

What is Your Minimum Recovery?

A. Sample recovery with 1 provider:

B. If Richard Harris Law Firm 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:

C. Sample recovery with 2 or 3 providers and cost sharing:

How we Pursue Your Claim – The Difference Legal Attention Makes

Excess Fees and Costs

• We will represent you & oppose an Attorney or other lien holder who attempts to recover more than their fair share.
• Object to requests for excess costs
• Object to the addition of excessive interest in claimed lien amounts

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.
• 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

⁷ Filing fee of $223, plus $30 for ^2nd defendant + $3.50 e-filing fee + 7.59 Wiznet CC charges = $264.09 ÷ 2
⁸ Filing fee of $223, plus $60 for 2 additional defendants + $3.50 e-filing fee + 8.49 Wiznet CC charges = $294.99 ÷ 2

Our Fee Agreement

Simple and sensible.

• 25% contingency fee, plus costs, taken at the end of the case.
• Richard Harris Law Firm 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 Richard Harris Law Firm 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.
• Provider gives Richard Harris Law Firm the authority to settle for pro-rata share.

Richard Harris Law Firm is a law firm dedicated to the highest levels of customer service and the highest principles of legal practice.