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....

usually required under state law in Florida.” . § 222.18, Fla. Stat. (2001).

garnishment is governed by Florida Statutes section 222.18, entitled “Exempting disability income from

and such a designation is permitted under section 222.18(1), Florida Statutes (2010). We have previously

at $175,000.00 based on Fla.Stat. § 222.14 and § 222.18. Since no objection was filed to the claim of

are exempt “disability income benefits” under § 222.18, Fla. Stat. The Chapter 13 trustee filed objections

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

“disability income benefits” pursuant to Fla. Stat. § 222.18,3 which states: Disability income benefits under

statutorily exempt from garnishment pursuant to section 222.18, Florida Statutes (1991).* The court allocated