State of Connecticut v. Ronnie Hammer (2011)

MEMORANDUM OF DECISION

The plaintiff, the State of Connecticut, seeks to enforce a lien for workers' compensation benefits paid to the defendant (now acting through her conservator), as a result of the proceeds of a personal injury lawsuit.   Many years ago, the defendant, Ronnie Hammer, was injured as a result of a fall while she was employed by the State of Connecticut.   Ronnie Hammer instituted a lawsuit against Thomas Lyons d/b/a Landmark Construction Company, claiming negligence resulting in the defendant's injuries.   The State of Connecticut intervened in that action for benefits paid pursuant to the Workers' Compensation Act. The personal injury negligence action was settled in November 2003 in the sum of $20,000.00.   On the date of the settlement, the State of Connecticut held a workers' compensation lien in excess of $300,000.00.

At the time of the settlement of the negligence action, the State agreed to waive its lien with respect to the net proceeds of the $20,000.00 in consideration of a resolution of the workers' compensation claim.   Accordingly, it was agreed, on the record, that the net proceeds would be held in escrow pending a final resolution of the workers' compensation claim which was anticipated to be in the immediate future.

However, the defendant did not proceed with the settlement of the workers' compensation action and attempts were made to reverse the withdraw of the personal injury action and have that case returned to the active docket.   Those actions were unsuccessful and the personal injury negligence action is now, and has been, fully completed and is no longer pending.   The entire proceeds of the $20,000.00 is however being held in escrow pending a resolution of the workers' compensation action.

While the defendant makes assertions regarding the deficiency of the legal services provided to her, there is no evidence which is sufficient to establish that assertion.   There is no evidence presented nor any claims made that the agreement regarding the funds being placed in escrow should be modified or declared invalid.   The only claim made is that the State of Connecticut is entitled to the net proceeds of the $20,000.00 after deduction of attorneys fees.

The agreement of the parties was that the net proceeds of the personal injury settlement should be placed in escrow until the workers' compensation claim is resolved and that agreement is still effective.

Accordingly, the sum of one-third of the $20,000.00 is to be distributed to Attorney Rubens as his attorneys fee and the remainder shall be held in escrow pending future action or the resolution of the workers' compensation claims.

RUSH, J.T.R.

Rush, William B., J.T.R.