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COA holds law firms are judgment creditors, owe restitution

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In a dispute over whether two law firms should have to repay money from a judgment they received by way of attorney liens, the Indiana Court of Appeals held that the law firms are judgment creditors, so they are liable to pay restitution to the state of Indiana.

The issue arose in Debra Minott, Faith Laird, Patti Bailey v. Lee Alan Bryant Health Care Facilities, Inc.; Parkview Residential Care Center, L.L.C.; Parke County Residential Care Center, L.L.C., et al., 49A05-1305-PL-213, in which several residential care facilities that provided services funded by the Family and Social Services Administration’s Residential Care Assistant Program sued the FSSA after it suspended funding for new RCAP residents and imposed fixed reimbursement rates. The providers were awarded $176,664.25 in damages. The money was disbursed among two banks and two law firms – Lewis & Kappes in Indianapolis and Chicago firm Williams Bax & Saltzman P.C., which had filed attorney liens. The firms received $72,399.22 of the damages award.

But the Court of Appeals reversed the judgment and ordered more proceedings. At the trial court level, the final judgment order entered Nov. 8, 2012, did not address restitution to the state for the damages paid out. The state sought reimbursement from the law firms and the banks, but the trial court denied the state’s motion.

The law firms argued that the state’s motion for restitution was untimely and, even if it wasn’t, restitution following a reversal on appeal cannot be extended to non-party creditors.

The Court of Appeals was not persuaded by the firm’s claims, ruling first that the state’s motion for restitution is timely.

“The issue of restitution arose only after this court’s decision to reverse the trial court’s judgment. The trial court’s November 8th order neither addressed nor disposed of that lingering issue. Therefore, it was not a true final judgment,” Chief Judge Margret Robb wrote.

The judges then ruled that the law firms and banks are liable for restitution of the funds paid by the state to the providers. The banks and law firms are judgment creditors or their lawful equivalent, so they are liable. The COA pointed to an agreed order entered by the trial court in 2011 that gave the law firms and creditor banks the right to enforce the judgment.

“Because the creditors had the power to enforce the judgment in their own favor, they are judgment creditors and should be treated as such for the State’s request for restitution,” she wrote.

 

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  1. "associates are becoming more mercenary. The path to partnership has become longer and more difficult so they are chasing short-term gains like high compensation." GOOD FOR THEM! HELL THERE OUGHT TO BE A UNION!

  2. Let's be honest. A glut of lawyers out there, because law schools have overproduced them. Law schools dont care, and big law loves it. So the firms can afford to underpay them. Typical capitalist situation. Wages have grown slowly for entry level lawyers the past 25 years it seems. Just like the rest of our economy. Might as well become a welder. Oh and the big money is mostly reserved for those who can log huge hours and will cut corners to get things handled. More capitalist joy. So the answer coming from the experts is to "capitalize" more competition from nonlawyers, and robots. ie "expert systems." One even hears talk of "offshoring" some legal work. thus undercutting the workers even more. And they wonder why people have been pulling for Bernie and Trump. Hello fools, it's not just the "working class" it's the overly educated suffering too.

  3. And with a whimpering hissy fit the charade came to an end ... http://baltimore.cbslocal.com/2016/07/27/all-charges-dropped-against-all-remaining-officers-in-freddie-gray-case/ WHISTLEBLOWERS are needed more than ever in a time such as this ... when politics trump justice and emotions trump reason. Blue Lives Matter.

  4. "pedigree"? I never knew that in order to become a successful or, for that matter, a talented attorney, one needs to have come from good stock. What should raise eyebrows even more than the starting associates' pay at this firm (and ones like it) is the belief systems they subscribe to re who is and isn't "fit" to practice law with them. Incredible the arrogance that exists throughout the practice of law in this country, especially at firms like this one.

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