COSGROVE, J.
The parties are in substantial agreement about certain facts underlying and forming both the basis of this motion and the alleged opposition thereto.
In this case, the plaintiff, Antonio Riccardi, sought damages from Pamela Strunk and AIG Premier Insurance Company. Ms. Strunk was the alleged driver of the vehicle that struck the plaintiff's vehicle on October 14, 2006. On that same date, the defendant, AIG Premier Insurance Company's policy covered the plaintiff's vehicle and which provided uninsured/underinsured motorist benefits. The parties agree that some time in August 2009, the parties reached a settlement of all issues of the case for the sum of $29,000.00.
Defendant, Pamela Strunk, was insured by Liberty Mutual Insurance Company. Liberty Mutual agreed to pay said sum on behalf of their insured. Liberty Mutual prepared a "Release And Settlement Of Claim Form" (hereinafter the Release) that it required be signed by the plaintiff before payments would be processed.
The "Release" recites that Mr. Riccardi, in consideration of the payment of $29,000 by the Liberty Mutual Fire Insurance Company would release and discharge Pamela Strunk and Liberty with regard to the October 14, 2006 automobile accident that occurred on Route 12 in Groton, Connecticut. The release also provides "the terms of this agreement are contractual in nature and not a mere recital" and that "the undersigned further represents that there are no past or future liens or rights of reimbursement by any hospital, ambulance service or other medical provider, Medicare, Medicaid, insurance company, workers' compensation provider or attorney enforceable against the proceeds of this settlement or against the parties released, or persons, firms or corporations making the payment herein. If such a lien or right is CT Page 3618 asserted against the proceeds herein or against the parties released or any person, firm or corporation making payment herein, then in consideration of the payment made to the undersigned, the undersigned covenants to pay and satisfy such asserted lien or reimbursement right. The undersigned promises to obtain a release and discharge such lien or reimbursement right and to indemnify and hold harmless the parties released and the persons, firm or corporation making the payments herein, from any costs, expenses, attorneys fees, claims, actions, judgments or settlements resulting from the assertion or enforcement of such lien or reimbursement right by any entity having such lien or right." This lien was signed by Antonio Riccardi on or about September 9, 2009 and apparently was delivered by certified mail to Liberty Mutual on or about September 14, 2009.
The parties are in agreement that on or about October 2, 2009, the insurer sent a check made payable to the plaintiff and his attorneys in the amount of $27,116.00 which was received on or about October 5, 2009. Plaintiff made a demand for the payment of the additional $1,884.00 due under the Release terms and an additional check in that amount was made out on November 13, 2009. The check was made out to the plaintiff, plaintiff's counsel and to MSPRC. The third payee on the check, MSPRC, is a Medicare Reimbursement entity.
Section 52-195c of the General Statutes requires that the defendant tender all sums due from such settling defendant to any settling plaintiff or the plaintiff's agent "not less than 30 days after receipt by the person or office designated in writing of a duly executed release and a withdrawal discontinuing the court action." Subsection (c) of this statute provides "[I]n the event of that a settling defendant or insurer fails to promptly tender all sums as required by subsection (a) of this section, a default judgment shall be entered by the court on behalf of any unpaid plaintiff against the defendant 20 days after such plaintiff files a motion for a default judgment with the court and serves such motion upon the representative of the insurer with whom the settlement was reached or the defendant with whom the settlement was reached. Such motion shall be accompanied by an affidavit executed by the plaintiff and the plaintiff's attorneys setting forth the terms of such settlement and supporting documentation attached."
The defendant argues that the Medicare has a lien on any settlement with a third party tortfeasor. Medicare can protect its lien by directly suing the insurer of the third party. As such, they argue that the last known amount of the Medicare lien in this file was $1,884.00 and, therefore, they added Medicare as a payee with regard to that portion of the settlement. This was done to protect the insurer, Liberty Mutual, CT Page 3619 from any further liability to Medicare.
The court is not persuaded by the arguments put forward by the defendant. The "Release And Settlement Of Claim Form" that was prepared by the defendant, contains an indemnification or hold harmless agreement from the plaintiff protecting the insurer in the event the lien is not paid by the plaintiff. Nothing in the agreement indicates that the plaintiff is obligated to accept a check comprising a portion of the settlement made out to payees other than the plaintiff and his attorney.
The court finds that the plaintiff has made a prima facie case that a default judgment ought to enter pursuant to the terms of § 52-195c(c).
Judgment may enter in favor of the plaintiff, Antonio Riccardi, as against Pamela Strunk in the amount of $1,884.00. Interest on said sum shall run in accordance with said statute from December 25, 2009 to the date of the payment at the rate of 12% for interest.
CT Page 3620