My WC settlement check was sent late and they are adding a 10% penalty, how long do they have to send the check after this?
3 attorney answers
If you had gotten your money on time and taken it to the bank, you surely wouldn't be getting 10% interest on your money per month. All in all, that's a pretty sweet deal when they screw up. Once they figure things out, I would think you'll have your money within a few days.
First, was the settlement check really sent to the wrong address? Generally, the address listed on the Compromise & Release controls. Did you or your attorney send in a change of address notification to the court and the insurance carrier plus their law firm?
No, a replacement check does not normally take thirty days to issue. Sometimes, a stop payment notice is issued on the first check to ensure that it has not reached you and been negotiated (cashed or deposited) by you. Because of ongoing interest exposure, as well as the penalty issue you noted, insurance administrators try to issue replacement checks quickly.
If you have an attorney, call his/her office for guidance.
Interest is also due! Interest is due on a judge's order. You very likely waived interest if payment was waived in the first 30 days...maybe your settlement terms even waive all interest for the first 30 days, but interest is due at the state rate of 10% for every day since day you are31 of the judge's order!! So, for every $1,000 owed to you, you are due 28 cents per day. If $20,000 was due on Dec. 1 and you don't get it until Jan. 16, 45 days @ $5.60/day, you are due an extra $252 in interest on the judgement. SO JUST LET THEM TAKE THEIR SWEET TIME...YOU CAN'T GET 10% LIKE THAT IN THE BANK! A letter from your lawyer demanding interest through the date the check would be received would be a great idea.