Happy Friday, team,
This week’s tip covers how to avoid Georgia’s 20% penalty on late settlement checks.
JOHN’S GEORGIA TIP OF THE WEEK: How to Avoid Georgia’s (very costly) 20% Penalty for Late Settlement Checks!
- Georgia’s Penalty and HOW TO AVOID IT!
- In Georgia, there is a 20% penalty if the settlement amount is not paid within 20 days of the approval date. O.C.G.A. § 34-9-221.
- I STONGLY urge that payment be made as soon as possible but in no event later than two weeks from the approval date to avoid any possible late penalty!
- ALWAYS
- Make sure to refer to the paragraph of the Board-approved Stipulation and Settlement Agreement containing the payment amounts to ensure the payments are (1) in the correct amounts and (2) mailed to the address specified in the stipulation!
- Issuing Payment
- Board Rule 15 mandates that SEPARATE CHECKS be issued to the Claimant and their attorney (when represented).
- The Claimant’s check MUST be mailed to the attorney’s office to be compliant with Georgia law (tracking is always preferred).
- You should NOT automatically send checks to the address listed on opposing counsel’s W9 because it is often wrong!!
I hope everyone has a great holiday weekend! As always, give me a shout if you run into any GA questions/issues.
Sincerely,
John Fennelly | Junior Partner