The hearing for the interpleader was yesterday. My initial small claims case was added to the interpleader case, after the interpleading attorney found out I filed a small claims so he showed up at the small claims case and explained to the judge to combine them because there were other creditors involved. At the interpleader was my attorney, the attorney that filed the interpleader, and 4 other attorneys representing hospital bills. Between the 5 clinics seeking payment there was $21 in bills without attorney fees and interest. The available amount impleaded, if I am saying that correctly, was $20k. My attorney's stance in front of the judge, after all 5 attorney's mediated in the "discussion room" was that I should be paid in full, with interest, and attorney fees because my UCC-1 lien agreement has terms such as:,
I hereby assign to the Office to the extent permitted by law, but only to the extent of my Charges, all of my claims to, rights to, and interests in, Proceeds, whether resolved or unresolved, including ownership rights, which I may have now or in the future relating directly or indirectly to my Charges, condition, or causes of my condition (“Claims to Proceeds”). Claims to Proceeds shall further include, without limit, any and all causes of action, receivables, payment intangibles, and remedies that I might have against or with respect to any Payer now or in the future, and the right to prosecute, seek, settle, or otherwise resolve such Claims to Proceeds either in my name or in the Office’s name and as the Office otherwise sees fit.
I further intend for this Assignment & Lien to create a security interest under the applicable Uniform Commercial Code.
Accordingly, I hereby grant to the Office a primary, non-contingent security interest in all of my Claims to Proceeds to the extent permitted by law for the purpose of securing payment of my Charges, the attachment and perfection of which shall relate back to, and be effective as of, the date and time that the initial cause of my condition occurred.
In the event that I retain one or more attorneys who receive(s) Proceeds from one or more Payers, I hereby direct (and the Office hereby requests) each attorney to provide immediate notice to the Office regarding such Proceeds, to promptly pay the Office in-full out of such Proceeds, and to provide a full accounting of such Proceeds to the Office. I agree that the purpose of such Proceeds shall be primarily to pay my Charges. If I have a dispute regarding the Charges, any remedies I may have shall not include instructing my attorney to withhold or delay payment of Proceeds to the Office
So my attorney argued the UCC-1 and gave examples of "Auto" liens, Liens on homes, etc. but did not reference the proceeds as "Property" and basically lost the argument because the other 4 attorneys argued that doctors in TN do not have liens and only "Hospitals" have liens.
My attorney lost the argument so everyone was was prorated payment at 94% and I basically did not recover my court cost of my initial small claims suit and my attorney fees, nor interest.
Options at this point my attorney said we could appeal in 10 days but he would need 10 hours of work. We are talking about $4k in interest, court costs, and attorney fees that I currently do not have. Which the judge did award me a judgment on that amount but I would have to recover that from the patient.
I do not understand that Judges get the "Glazed look" in their eyes when they hear "UCC-1" . Also most attorneys say it is not enforceable and is "theory". What do you think and what options may I have. NOTE: Attorney fees and interest is in my liens.
Other Note: The hospital's had agreements with the patient of course, but did not file liens, so I am not sure why my security interest was not paid first out of the impleaded funds. Also I am not sure why the interpleading attorney did not pay me directly based on my filed lien that I gave a faxed notice to him before he filed the interpleader.
If I am paying filing fees to the Tennessee Secretary of State without a product or service in return, in the real word this is usually referred to as a "scam". What would your comments be on this?