Florida/Georgia Personal Injury & Workers Compensation

...First, the garnishment statute does not address attorney trust accounts. Second, we note that the Legislature elsewhere in the Florida Statutes has chosen to exempt several funds from garnishment, including the cash surrender value of life insurance, see § 222.14, Fla. Stat. (2007); disability income benefits, see § 222.18, Fla....

...Grau valued the policies at $0.00 on the summary of schedules in the bankruptcy proceeding because he was unsure whether he was "disabled" when he filed bankruptcy. Grau could have claimed these policies as entirely exempt from his creditors under section 222.18, Florida Statutes (1998), but instead classified them as nonexempt as a showing of good faith to his creditors and to avoid the cost of potential litigation over the exemption....

...We find the source of funds to be irrelevant for purposes of the application of section 222.14. [4] See ch. 10154, § 1, Laws of Fla. (1925). [5] See ch. 78-76, § 1, Laws of Fla. [6] See chapter 10154, § 1, Laws of Fla. (1925); Comp. Gen. Laws § 7066 (1927). [7] In Zuckerman, we construed section 222.18, Florida Statutes (1991), which exempts disability income benefits from legal process. See Zuckerman, 646 So.2d at 188. Section 222.18 contained the words, "of whatever form" as opposed to "upon whatever form," found in section 222.14....

...al part, he had deposited in still another account. Bankrupt claimed as exemptions the sums in the three accounts above, plus other amounts not in controversy here. In claiming the disability amounts as an exemption, appellant relies upon Fla. Stat. Section 222.18, which states that disability benefits shall not be liable to attachment, garnishment, or legal process in the state....

...r whether as a matter of law sums exempt from judicial process under state law lose their exempt character after they are paid to and received by the person claiming the exemption. In the case of disability payments the exemption statute, Fla. Stat. Section 222.18 provides: Disability income benefits under any policy or contract of life, health, accident or other insurance of whatever form, shall not in any case be liable to attachment, garnishment, or legal process in the state, in favor of any...

...The statute is thus silent on this exact issue, exempting simply "disability income benefits." "Benefits" could mean either the present right to receive such benefits, as an annuity contract, or benefits after they are paid. Exemptions for disability benefits are dependent upon specific statutes; before Section 222.18 became law (in 1941), disability benefits were not exempt from judicial levy and would thus pass to the trustee in bankruptcy in situations like the present one....

...Because annuity contracts are subject to no specific exemption, upon bankruptcy all right to receive future annuities, as well as all payments received in the past, pass to the trustee in bankruptcy. Cf. In re Power, 115 F.2d 69 (7th Cir. 1940). Thus it is clear that at least one major purpose of Section 222.18 is to preserve for the bankrupt the right to receive future disability benefits. This may be wise because a disabled bankrupt may be unable to return to work after bankruptcy and support himself through future earnings. Future earnings as after-acquired property would not pass to the trustee. Through Section 222.18, therefore, the legislature sought to achieve equality in treatment between future earnings and the disabled bankrupt's only substitute — disability benefits....

...Lump-sum beneficiaries enjoy the immediate benefit of disposition of their lump-sum. In return for this benefit, they must risk losing their lump-sum if they choose to segregate it from their creditors and thereby precipitate bankruptcy. In view of the foregoing, the court concludes that Section 222.18 exempts only those disability benefits that have not been paid to beneficiaries....

...568 (1918), however, construed a state statute exempting pension funds "to be paid" to a beneficiary as applying equally to funds already paid. As the statute in Lankford appears to be even more consistent with this court's result in the instant case than is Section 222.18, Lankford must be viewed as authority contra, which this court refuses to follow....

...The factual issue involved whether the insured's assignments of benefits to the hospital were valid so as to divest the insured of his privilege under the policy to request that the insurance proceeds be paid as disability, rather than medical, benefits. The legal question involved the effect of section 222.18, Florida Statutes (1983), which exempts disability payments from legal process....

...Shallowford Community Hosp., Inc., 767 F.2d 1556, 1559 (11th Cir.1985), consideration of the trustee's right to turnover of the refund in this instance is done in the context of the debtor's claim of an exemption for disability benefits pertaining to this policy. The debtor claims the exemption under Fla.Stat. § 222.18 which provides that: "Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to attachment, garnishment, or legal process in the state, in favo...

...The disability insurance policy which is the source of benefits should be subject to the same claim of exemption as the benefits. In the dearth of decided cases on this issue, and relying on a case decided in this district under the former Bankruptcy Act where the court concluded that Section 222.18 exempts only those disability benefits that have not been paid to beneficiaries, I agree with the debtor that the exemption applies and he is entitled to retain the policy for the protection it provides in the event of a future disability....

...ated a company pension plan upon its bankruptcy. The debtor originally scheduled the property as exempt as "pension disability payments" pursuant to § 222.21, Florida Statutes but, by amendments, has claimed the annuity as exempt under §§ 222.14, 222.18, and 222.201, Florida Statutes....

...lt of exempting the annuity without having to decide the more difficult issue of whether an annuity bought when a pension plan described in § 222.21 is terminated is nevertheless entitled to the exemption afforded by § 222.21. The debtor relies on § 222.18, Florida Statutes....

...§ 522(b)(2)(A) and suggests that the reasoning in In re Komet, 104 B.R. 799, 808-816 (Bkrtcy. W.D.Tex.1989) will prevail. In that eventuality, the constitutionality of statutes such as § 222.21, Florida Statutes, as applied to ERISA retirement benefits would become irrelevant. [3] 222.18 Exempting disability income benefits from legal processes....

...The trial court denied Zuckerman's motion to dismiss the writ and awarded Hofrichter a portion of the funds. The district court affirmed. Zuckerman asserts that the district court's decision should be quashed since benefits paid pursuant to a disability insurance policy fall within the exemption delineated in section 222.18, Florida Statutes (1991), even when such benefits are paid in a lump sum and pursuant to a settlement. Section 222.18 reads as follows: Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to attachment, garnishment, or legal process in the state, in favor of any creditor or creditors of the recipient of such disability income benefits, unless such policy or contract of insurance was effected for the benefit of such creditor or creditors. We agree with Zuckerman's assertion and find that section 222.18 is controlling. We need not resort to rules of construction when, as here, the words of a statute are clear and legislative intent is manifest. See Zuckerman v. Alter, 615 So.2d 661 (Fla. 1993); S.R.G. Corp. v. Department of Revenue, 365 So.2d 687 (Fla. 1978). Section 222.18 expressly reads that disability income benefits "of whatever form" paid pursuant to an insurance contract or policy shall not be subject to garnishment, unless such insurance was effected for a creditor's benefit. The words "of whatever form" are dispositive. The clarity of these words leads us to conclude that the section 222.18 exemption is not contingent upon the form of payment, i.e., lump sum versus monthly payments, nor does it discriminate between monies paid pursuant to settlement or otherwise....

...of negotiation, or pursuant to an agreement for surrendering the policy in consideration of a sum of money to be paid in whole or in part conditioned upon a surrender of the life insurance feature of the policy... ." Id. at 384. We find, pursuant to section 222.18, Florida Statutes (1991), that disability income benefits paid under any policy or contract of life, health, accident, or other insurance of whatever form are exempt from garnishment, attachment, or legal process in the state without r...

...In due course, the Debtors filed their Response to the Trustee's objection, and a hearing was held on the matter. The Trustee contends that disability payments are not exempt once they are received and placed in a checking account. The Debtors contend that Florida Statute § 222.18 specifically exempts disability income benefits from legal process. Florida Statute § 222.18 provides for an exemption of disability income benefits from legal process, stating: Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to...

...garnishment, or legal process in the state, in favor of any creditor or creditors of the recipient of such disability income benefits, unless such policy or contract of insurance was effected for the benefit of such creditor or creditors. Fla. Stat. § 222.18 (1995). In In re Prestien, 427 F.Supp. 1003, 1006 (S.D.Fla.1977), the court concluded that Florida Statute § 222.18 exempts only those disability benefits that have not been paid to beneficiaries and that the benefits which a debtor had received and deposited in savings accounts were not exempt....

...me provision, it is the Trustee's contention that the silence or inaction by the Legislature indicates that once the payment has been received and deposited in a bank account, that it is no longer exempt, notwithstanding the provisions of Fla. Stat. § 222.18....

...Blazer Financial Services, Inc., 369 So.2d 987 (Fla.App.4th Dist.Ct.App.1979). The First District Courts of Appeals held, just like the Trustee in the instant case contends, that since the Legislature did not amend the basic statute, in that case Fla. Stat. § 440.22, and in the present instance Fla. Stat. § 222.18, the legislative intent was reflected that the workers' compensation benefits and, in the present case the disability benefits, were no longer exempt once deposited in the bank account....

...Based on the foregoing, this Court is satisfied that the decision of the Florida Supreme Court in Broward is determinative of the issue raised by the Trustee's objection to the claimed exemption and that disability benefits received and deposited into a checking account maintain their exempt status under Fla. Stat. § 222.18....

...Zuckerman, P.A.] from an adverse judgment entered in a garnishment proceeding awarding certain lawsuit settlement proceeds to the judgment creditors [Hofrichter & Quiat, P.A., et al.]. It is urged that the settlement proceeds were exempt from garnishment by Section 222.18, Florida Statutes (1991) which provides that "[d]isability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to ......

...Zuckerman's attorneys in the insurance suit for legal services rendered in that suit. We conclude that the lawsuit settlement proceeds in the hands of Provident did not, as urged, constitute "disability income benefits" exempt from garnishment under Section 222.18....

...Johnson (Johnson) filed her voluntary Petition for Relief under Chapter 7 of the Bankruptcy Code on July 24, 1990, Case No. 90-7217. On her B-4 Schedule, Johnson claimed her interest in an employee profit sharing Plan with Fuller and Lane, M.D., P.A., (Fuller and Lane) as exempt pursuant to Florida Statutes § 222.14, § 222.18, § 222.201, § 222.21; 29 U.S.C....

...support or the support of their dependents. Therefore, any argument in this regard must fail. The Debtor Johnson also relies on Fla.Stat. § 222.14, which deals with the exemption of the cash surrender value of life insurance policies, and Fla.Stat. § 222.18, which deals with exempting disability income benefits from legal process....

...As described in Losacano v. Deaf & Hearing Connection of Tampa Bay, Inc., 988 So.2d 66 , 70 n. 2 (Fla. 2d DCA 2008), the elements of judicial estoppel under federal law in such cases "may not be identical to the elements usually required under state law in Florida.” . § 222.18, Fla....

...Thereafter, pursuant to the former husband’s motion, the trial court entered an order dissolving the writ. The former wife appeals the order dissolving the writ as it pertains to the bank account containing the disability income. The amenability of disability income to garnishment is governed by Florida Statutes section 222.18, entitled “Exempting disability income from legal processes,” which provides: Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable t...

...While there is no ease published by a Florida court discussing the issue, we believe that the supreme court’s opinion in Broward v. Jacksonville Medical Center, 690 So.2d 589 (Fla.1997), supports a conclusion that such benefits are still subject to the protections of section 222.18 following payment to the beneficiary....

...The court was careful to limit its holding, however, to funds that could be traced as worker’s compensation benefits. Id. at 592 . We adopt the reasoning of the bankruptcy court in In re Ryzner, 208 B.R. 568 (Bankr.M.D.Fla.1997), applying the Broward analysis to section 222.18. 2 Accordingly, we hold that the statutory exemption for disability benefits, provided by section 222.18, operates not only to protect such benefits in the hands of the insurer, but also in the hands of the insured or beneficiary....

...chapter shall be valid, and such compensation and benefits shall be exempt from all claims of creditors, and from levy, execution and attachment or other remedy for recovery or collection of a debt, which exemption may not be waived. . Indeed, with section 222.18, there is not even the necessity of overcoming the "due or payable” language present in the worker's compensation statute. Compare § 222.18, Fla....

...The step-mother responds that the son was not entitled to a judgment as a matter of law. She asserts there is no reason for the proceeds to pass through intestacy because the decedent designated himself as the beneficiary under the express terms of the policy, and such a designation is permitted under section 222.18(1), Florida Statutes (2010)....

...On May 8, 1990, the Debtors filed their first Petition for Relief under Chapter 7 of the Bankruptcy Code. In the Schedules submitted with their Petition, the Debtors claimed as exempt an annuity valued at $175,000.00 based on Fla.Stat. § 222.14 and § 222.18....

...38 The Exemptions Dispute On January 9, 2013, some eighteen months after the Petition Date, Debtor filed an amended Schedule C asserting that all funds he had received from the Parts Depot settlement are exempt “disability income benefits” under § 222.18, Fla....

...40 The District Court affirmed on March 17, 2014, concluding that Debtor had not established that because the accident rendered him disabled, the settlement proceeds he received are therefore “disability income benefits” and, thus, exempt under § 222.18 Fla....

judgment debtor was exempt from garnishment under section 222.18, Florida Statutes (1991), plainly required

...t wages or earning ability” ($130,000.00). (Doc. # 1-2, Doc. # 1-15, Doc. # 12 at 11-12). According to Chesley, the “monetary assets” were exempt from creditors’ claims as “disability income benefits” pursuant to Fla. Stat. §§ 222.14 , 222.18, 222.201, and the liquid assets were exempt under 11 ' U.S.C....

...the Florida exemption law in the same manner as a Florida state court. Id. According to Chesley the “monetary assets” listed on the Amended Schedule C are exempt from creditors’ claims as “disability income benefits” pursuant to Fla. Stat. § 222.18 , 3 which states: Disability income benefits under any policy or contract of life, health, accident, or other insurance of whatever form, shall not in any case be liable to attachment, garnishment, ,or legal process in the state, in favor of any creditor or creditors of the recipient of such disability income benefits, unless such policy or contract of insurance was effected for the benefit of such creditor or creditors. Fla. Stat. § 222.18 ....

...,’ as well as $420,000 for future medical compensation.” (Doc. # 22 at 13). Therefore, Chesley posits that the damages suggested by the jury were to be provided as disability income and medical expenses within the allowed exemption— Fla. Stat. § 222.18 ....

...loss of earning capacity.” (Id. at 13-14). Therefore, it is Chesley’s position that as the personal injury accident rendered Chesley “disabled,” the settlement proceeds he received through the general release must be exempt under Fla. Stat. § 222.18 as they are disability income benefits. The Chapter 7 Trustee on the other hand, contends that an exemption under Fla. Stat. § 222.18 is only applicable to “disability income benefits,” which Chesley’s general release settlement is not....

...Thus, it is the Chapter 7 Trustee’s position that the nature of the settlement in Chesley’s personal injury case was not a settlement of a disability income benefit under a policy, but was in fact the settlement of a tort claim for which there is no available exemption under Fla. Stat. § 222.18 . Upon review of Fla. Stat. § 222.18 , the Court finds that the Bankruptcy Court did not err in determining that the proceeds from Chesley’s general release settlement were not exempt under Fla. Stat. § 222.18 . While the Court acknowledges Chesley’s discussion regarding the interpretation of Fla. Stat. § 222 .18’s use of the terms “whatever form” and “under,” the Court finds that a plain reading of Fla. Stat. § 222.18 indicates that for the exemption to apply to Chesley’s settlement proceeds, it must be established that 1) the proceeds are disability income benefits and 2) these benefits are under a policy. See (Doc. # 12 at 16 — 20); Fla. Stat. § 222.18 ....

...The record before the Court fails to establish that the general release settlement satisfied these two requirements. Therefore, the Court finds that there is no genuine dispute as to whether the proceeds from the general release settlement are not exempt under Fla. Stat. § 222.18 ....

...Thus, it is apparent that the parties to the general release settlement did not contemplate that the proceeds would represent disability income benefits. Chesley cites to several cases requesting this Cohrt, in essence, to presume that any personal injury settlement under any insurance policy is exempt under Fla. Stat. § 222.18 ....

...387 (Bankr.M.D.Fla.1988); Zuckerman v. Hofrichter & Quiat, P.A., 646 So.2d 187, 188 (Fla.1994). Not only are the cases cited by Chesley distinguishable from the action presently before the Court, but these cases reveal that Chesley’s reading of Fla. Stat. § 222.18 *896 would be a far stretch of the apparent meaning behind the statute....

...(emphasis added). In an unrelated action, Hofrichter & Quiat obtained a money judgment against Zuckerman and upon learning of the settlement agreement filed a writ of garnishment against the settlement. Id. The Florida Supreme Court found Fla. Stat. § 222.18 to be controlling as there was no dispute about the nature of the underlying policy, and therefore, the benefits paid to Zuckerman fell within the statutory exemption and thus were not subject to garnishment....

...any binding authority or support in the record to establish his contention that because the accident rendered him disabled, the settlement proceeds he received are therefore deemed “disability income benefits’- and, thus, exempt under Fla. Stat. § 222.18 . See (Doc. 1-26 at 22:15-17) (Bankruptcy Court stating that Chesley is “not able to tie a connection between what [he is] trying to articulate and [Fla. Stat. § ] 222.18’s express wording.”)....

...The record is devoid of any support illustrating that the general release settlement contemplated the proceeds be derived from a disability insurance policy or to represent disability income benefits. Therefore, the Court finds that the settlement proceeds are not exempt under Fla. Stat. § 222.18 ....

...Whether Assets Purchased by Chesley, Using “Exempt” Personal Injury Settlement Proceeds Pri- or to Filing Bankruptcy Petition, Maintain Exempt Status As this Court has found that the personal injury settlement proceeds are not exempt under Fla. Stat. § 222.18 , the Court declines to address this issue....

...Conclusion Upon review of the arguments presented by both parties and the record before the Court, the Court finds that there is no *897 genuine issue of material fact as to whether the settlement proceeds Chesley received are not exempt under Fla. Stat. § 222.18 ....

...Hofrichter & Quiat served a writ of garnishment on Provident Life & Accident Insurance Co., which owed $75,000 to Zuck-erman. After evidentiary proceedings, the trial court entered an order rejecting Zuck-erman’s claim that the funds were statutorily exempt from garnishment pursuant to section 222.18, Florida Statutes (1991)....