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From FC&S Legal: Judge Posner Dismisses "Frivolous" Appeal of Contempt Order in Subrogation Case and Orders District Court to Consider Whether Lawyer and Client Should Be Jailed
Judge Richard Posner of the U.S. Court of Appeals for the Seventh Circuit has written the opinion for a panel of three judges dismissing a “frivolous” appeal by a lawyer and his client from a district court order holding them in contempt in a subrogation case.
As Judge Posner explained, Beverly Lewis was injured in an automobile accident in Georgia and her health plan paid approximately $180,000 for the cost of her medical treatment. Represented by Georgia lawyer David T. Lashgari, Ms. Lewis brought a tort suit in Georgia state court against the driver of the car involved in the accident (her son-in-law), and obtained a $500,000 settlement. The health plan had, and, Judge Posner wrote, Mr. Lashgari “knew it had,” a subrogation lien that granted it the right to offset the cost that the plan had incurred as a result of the accident against any money that Ms. Lewis obtained in a suit arising out of the accident.