Public Adjuster's Lien
Chapter 770 of the Illinois Compiled Statutes creates lien rights for numerous professions such as attorneys and doctors but does it also provide these rights to other professions such as Public Adjusters? This was the issue that the Illinois Appellate Court, 5th District, had to address in the case of Golub and Associates v. State Farm Fire and Casualty.
After a fire destroyed her home, Rosalind Clayton retained the plaintiff, a public insurance adjuster, to assist her in handling the claim. The plaintiff notified State Farm of his lien and his contract with Ms. Clayton and asked that his name be included on payments made to Ms. Clayton. The plaintiff handled the claim for Ms. Clayton and negotiated a settlement with State Farm. Shortly after the settlement was reached, Clatyon fired the plaintiff. Initially State Farm( www.statefarm.com) issued a check to both Clayton and the plaintiff. But Clayton then contacted State Farm and requested that the check be reissued in her name only. As a result, plaintiff filed suit. The trial court granted summary judgment in favor of the plaintiff.
The Appellate Court affirmed. The Court pointed out that Chapter 770 is not meant to be comprehensive and nowhere in the statute does it state that only certain profession's liens are the only liens to be recognized. "No one should be expected to work in a profession that would allow clients to fire the professional after the professional services were rendered unless there is an avenue to ensure payment."
