If you ask Virginia consumers their opinions about the proposed new law that would mandate insurers to notify car accident victims when a settlement check has been sent to their lawyer, they will probably tell you that they think it is a good idea.
The Virginia Payee Notification Statute has received a lot of opposition by trial lawyers because they feel that it “unfairly singles out plaintiff’s lawyers.” One attorney commented that the lawyers who oppose this proposed statute are placing their own egos in front of a common sense rule. “Their feelings are hurt.”
There have also been a lot of supporters of this law, as they feel that it would protect consumers against unethical attorneys, such as Stephen Conrad.
Conrad concocted a scheme where he would settle his clients’ cases without their knowledge and when the insurance company would mail Conrad the settlement check, he would forge his clients’ signatures and cash it. He was able to steal millions of dollars. If the Virginia Payee Notification Statute had been in place, Conrad probably would not have been able to pull off this stunt.
