HOUSTON (Legal Newsline) – Texas personal injury lawyers say they don’t owe the federal government any part of the $30,000 in fees they earned in one of their car accident lawsuits.
Carrigan & Anderson on July 1 responded to a lawsuit filed against it by the Centers for Medicare and Medicaid Services, which is pursuing more than $53,000 out of a $70,000 settlement.
Medicare covered $47,000 in medical expenses for Carrigan client Tomas Tijerina. A Texas state judge reduced Medicare’s recovery to $4,700, leading to the current dispute.
The feds seek the full difference between the two figures, as well as $11,000 in interest.
“Medicare was notified of and given an opportunity to be heard with regard to the underlying motion prior to the Court's entry of such order following an evidentiary hearing, but declined to do so,” Stephen Carrigan wrote.
“Furthermore, Medicare both received and cashed the full and final settlement proceeds check made payable to it in the amount of $4,700.00, thereby estopping it from asserting a claim for further recovery from the same settlement fund.”
The firm also claims the feds are failing to seek recovery from all parties who received settlement funds, instead focusing on the lawyers. Tijerina, Medicaid and a credit company also took portions of the settlement.
“(U)nless these other person and entities who received settlement proceeds now sought to be disgorged and repaid in whole or part to Medicare, Defendants may be ordered to pay monies not only that they do not legally owe (e.,g., their procurement costs reimbursement) but also far in excess of what they actually received out of the settlement proceeds,” Carrigan wrote.