In The News

Supreme Court Rules in Favor of Personal Injury Cases

May 10, 2006

In a dramatic decision that protects plaintiffs in personal injury lawsuits the US Supreme Court voted in favor of defending the financial awards that plaintiffs receive in those cases. The Court affirmed the decision of an Arkansas Court in the case of the Arkansas Department of Health and Human Services v. Ahlborn. From now on the state will be limited to reimbursement only for medical expenses paid to any plaintiff in a personal injury settlement.

Before this decision, South Carolina and other states, could ask for portions of plaintiffs’ awards including any money received for pain and suffering, therapy, loss of enjoyment of life or any other non-medical related award. Now the state’s reimbursement money will only be able to come from funds awarded to plaintiffs for medical reasons. Any other settlement proceeds will be completely withheld from state reimbursement.

This means that South Carolina plaintiffs who file lawsuits are protected from having their financial awards taken away from them by the state. In the past, some plaintiffs had their entire awards taken away due to state reimbursement. The decisive case involved an Arkansas woman who had sustained serious injuries which included brain damage. Her claim included money to pay for loss of future loss of earnings, pain and suffering, medical expenses and many other things.

The woman was awarded $550,000 in a settlement but Arkansas immediately claimed that it was owed $215,645. This amount was based on the state’s Medicaid paid out to cover the woman’s medical bills. In the ensuing legal battle attorneys for the woman argued that the state was only entitled to money coming out of medical related expenses paid to the woman, limiting the state’s portion to just under $36,000. The Arkansas district court agreed with the state but the 8th Circuit court overturned their decision and the matter went to the US Supreme Court.

The Supreme Court upheld the decision because they said that state law was already limited to medical expense reimbursement under the federal social security act. The laws were such that no other type of award or settlement could be taken by the state. What this change in the law means for individuals who already have paid the state in the past is yet to be determined. If you or a loved one has been involved in a personal injury case and you are concerned about payments of your settlement to the state or anyone else contact our law firm immediately for a free consultation.

The Louthian Law Firm is one of South Carolina’s oldest and most respected law firms. We have been handling personal injury cases and other legal matters throughout the state since 1959. We are offering free evaluations on any personal injury case in South Carolina.

Contact our office for more information about the new legal changes that are being made throughout South Carolina. By keeping yourself informed you will be able to retain your rights and protect yourself and your family from harm.

South Carolina Personal Injury Lawyer Disclaimer: The auto accident, wrongful death, car accident, motorcycle accident, medical malpractice, brain injury, or other legal personal injury information presented at this site should not be construed to be formal legal advice, nor the formation of a lawyer or attorney client relationship. Further communication with our attorneys through the website and email may not be considered as confidential or privileged. Any results set forth herein are based upon the facts of that particular case and do not represent a promise or guarantee. Please contact a South Carolina personal injury lawyer at the Louthian Law Firm, P.A. for a consultation on your particular personal injury matter. This web site is not intended to solicit clients for matters outside of the state of South Carolina.