PointofLaw.com
 Subscribe Subscribe   Find us on Twitter Follow POL on Twitter  
   
 
   

 

 

Client consumer protection: "payee notification" laws



In response to the persistent problem of lawyers' stealing money owed to their clients, eleven states including New York and California have adopted "payee notification" laws embodying what Peter Morin calls a "rather simple and effective" rule: "When an insurance settlement check is transmitted from an insurer to a claimant's attorney, the claimant receives notification.

"Who could possibly object to that? Well, some lawyers." In Massachusetts, for example, a county bar association has come out against the idea, saying it implies not all lawyers can be trusted and permits that arch-no-no, direct contact between an adversary insurer and their own client without their intermediation.

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.