Sounds like there maybe a few more details regarding this matter. You may want to employ a general practice attorney to assist you in getting your settlement.
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You have posted on this problem repeatedly. Filing for an Article 81 guardianship is a pretty drastic step. There has to be a court appointed attorney to investigate the facts objectively, and medical information must be presented to the court. I suggest you talk to the court appointed attorney if you haven't already. That person is there to look after your interests. You are also at liberty to retain your own attorney to oppose the Article 81. Nobody is going to get any money until the Article 81 proceeding is resolved.
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As Mr. Brophy points out, if an Article 81 has been filed, there will likely be no distribution of the settlement funds until that is resolved. On the other hand, unless the Art. 91 Petition included a provision that permits the Insurance Carrier for the Hospital to hold onto the funds until the Petition is finally resolved, the carrier has no right to unilaterally decide to hold onto the funds. Interest, cost and disbursements may and/or should be tacked on by your attorney filing a Judgment pursuant to CPLR 5003-a. Their refusal to pay is also why he has asked to have the money paid into the court for safekeeping. As suggested, you should speak to the Guardian Ad Litem - court appointed attorney- who is supposed to be looking out for your best interest and/or retain a separate attorney to pursue your interests in the Art. 81 proceeding.
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