Folks ... I've noticed from reading this forum that there are many minds that are superior to mine that post here. I'd like to tell you a short story about a problem I'm having and request your advice on how to proceed.
In 2005 I went on disability due to cancer. Since then I've had 5 cancer related surgeries w/ promises of more. For the past 3 years my income has been a combination of Group Disability and Social Security. In April of '08 the insurance company for my employer denied my disability claim and I got a lawyer to file the appeal. I tried to shop carefully for a lawyer but it turned out there is only one lawyer in this area that handles such matters so I went with him. My group disability benefit is about $500 a month. The Social Security disability benefit was never affected as Social Security has approved me for 5-7 years w/no expectation of improvement.
The lawyer required $3,000 upfront plus a sliding scale starting at 25% to be applied to the amount recovered. Aside from sending a few letters the lawyer did nothing. The actual appeal was done by me. I visited all my doctors and gave them the paperwork requesting information and paid them myself. The company sent a claim file which I critiqued and sent my notes to the lawyer. He copied and pasted my notes onto his letter head, had me sign it and sent that in as the appeal. I realized that due to the sliding scale he would be compensated higher if the appeal failed the first few times and I believe that may be why he put so little effort into my case.
I won the appeal. As my doctor says, "If you're not permanently disabled, I don't know who is". The back pay was deposited directly into my checking account and I used it to pay some of the bills I've accumulated. Shortly before my receiving the deposit the lawyer called me and informed me that he believed I owed the entire sum to him. He claimed that although the Social Security was never on the table, the insurance company had issued a benefit statement saying that I received $4,000, and that this figure was derived by subtracting the $12,000 paid by Social Security from the $16,000 that would have been my benefit if there was no Social Secuity. I have been collecting Social Security for several years and he knew my monthly benefit was coordinated w/ Social Security. He is aware that all I rec'd was $4,000. When we spoke in December I stated that he knew that I only received $500 a month and had been receiving this amount for a couple years. I had received $4,000 for my 8 months of benefit and therefore his 25% of the recovery was $1,000. He said I owed him $4,000.
Since my initial conversation where I believe he attempted to defraud me I have not answered his calls or responded to his letters. I feel if he believes I owe him that amount let him put it in writing. So far no bill, which I assume is because he's not anxious to put in writing what I believe amounts to fraud. Three weeks ago, without my permission, he contacted my employer and had my permanent address changed to his own on all my correspondence, my 401K, my medical, my 'pay stubs', my disability paperwork, everything ... I changed it back today.
Here are my questions that I would greatly appreciate your answers or opinions for:
1. Does the phrase "recovery" apply to the amount I rec'd from the insurance company or to the amount they would have paid me if I didn't have Social Security?
2. I paid for my medical insurance during the eight months that the appeal took. This was part of the $4,000 recovery. Do I get to subtract the money I paid for that period from the amount I owe him a percentage of?
3. Would you say I am right in thinking that if he wasn't trying to defraud me with his request for $4,000 he would have sent me a bill already (3 months since phone call) ?
4. Is it legal for him to change my address to his own w/o my requesting him to?
5. If he takes me to court (small claims) can I say that although we had a signed contract it is invalid due to our never having had a meeting of the minds and then simply pay him for the approximately 3 hours he put in on my case?
6. Much as I'd love to have this SOB take me to small claims court, is there a better way to handle this than my non-communication w/ him and waiting for a bill.
Bear in mind, I'm the kind of guy that pays my bills the moment they come in the house. If he had sent me a bill for a grand I'd have paid it long ago, but I don't owe him $4,000.
Thanks for reading this ...
I will appreciate and consider all serious responses.