Detailed Answer
This page explains how to secure wrongful-death settlement proceeds with the court clerk in Michigan. It describes the legal framework, practical steps, and common issues you will encounter. This is educational information only and not legal advice.
Legal framework: Michigan wrongful-death claims proceed under the Michigan Wrongful Death Act. That statute defines who can bring a claim and how damages are distributed; see the statute: MCL §600.2922 et seq.. Court procedures (how funds are handled by courts) are governed by Michigan Court Rules and local court procedures; see Michigan Court Rules.
Why secure funds with the court? Parties often ask a settling defendant or insurer to deposit settlement proceeds with the court clerk (sometimes called the court registry) when there is a dispute about who is entitled to the money, when beneficiaries include minors or incapacitated persons, when liens or outstanding bills are unresolved, or when heirs ask the court to supervise distribution. Depositing funds with the clerk protects the payer from multiple claims and protects beneficiaries while legal and administrative issues are resolved.
Typical options to secure proceeds
- Deposit into the court registry (clerk’s account). File a motion or stipulation asking the trial court handling the wrongful-death action to allow funds to be deposited into the court’s registry. If the court signs an order, the defendant or insurer can issue a check payable to the clerk (example payee: “Clerk of the Circuit Court, [Name] County, as Court Registry”) and deliver it per local clerk instructions. The clerk will hold the funds until the court orders disbursement.
- Interpleader action. If multiple parties claim the proceeds or a payer fears exposure to conflicting claims, the payer can file an interpleader and deposit funds with the court. The court then determines rightful recipients and issues an order distributing the money.
- Escrow with an attorney or third-party escrow agent under court supervision. Sometimes the parties ask that funds be placed in an attorney trust account or licensed escrow agent subject to a court order. This requires precise language and usually a court-approved order setting conditions for release.
- Probate court supervision for minors or incapacitated beneficiaries. When beneficiaries are minors or legally incapacitated, settlement approval or protective procedures may be required in probate court (conservatorships, guardianships, or court-approved settlement for minors). The probate court may direct that funds be placed under guardianship or under the court’s protective orders.
Step-by-step process (common steps in Michigan)
Below is a practical path to securing funds with the court clerk. Procedures vary by county and by the court handling the wrongful-death case (usually circuit court).
- Confirm the right court and case caption. The request goes to the court where the wrongful-death case is pending (often the circuit court for the county where the suit was filed).
- Draft and file a motion and proposed order. Ask the court to approve a deposit into the court registry (or to accept an interpleader). The motion should identify the parties, the payer (insurer or defendant), the proposed payee format for the check, the amount, and the reason for depositing (e.g., competing claims, minor beneficiaries, unresolved liens).
- Serve interested parties. Provide notice to all known claimants, lienholders (medical providers, Medicare/Medicaid subrogation, health insurers), and any interested public entities. If a beneficiary is a minor, appointing a guardian ad litem or getting probate-court involvement may be required.
- Obtain the court order. The judge will sign an order authorizing acceptance of funds into the court registry and setting conditions for withdrawal or distribution. Keep a certified copy of the order to give to the payer and the clerk.
- Provide the payer with deposit instructions. Once the order is entered, provide the payer with: (a) the signed order, (b) exact payee language (e.g., “Clerk of the Circuit Court, [County Name], as Court Registry”), and (c) any required clerk forms for depositing funds.
- Clerk holds funds subject to further order. The clerk will deposit the money into the court registry account. Local rules and clerk procedures control how funds are held, how interest (if any) is handled, and what fees may be charged.
- Resolve claims and obtain distribution order. After liens, claims, and beneficiary questions are resolved (by stipulation, settlement, or court ruling), the court issues an order directing the clerk to distribute funds and specifying payees and amounts. The clerk will disburse pursuant to that order.
What to expect from the clerk
- Each county clerk or circuit court has its own registry procedures and required forms. Some clerks require a particular deposit cover letter, originals versus certified orders, or an updated address for payees.
- The clerk will typically require an order specifically authorizing the clerk to accept and hold funds and describing conditions for release.
- Some clerks charge administrative fees or follow statewide rules for handling registry funds; the court order often addresses payment of those fees.
- Withdrawal normally requires a further court order signed by the judge; the clerk will not release funds on informal request.
Common issues and how to handle them
- Liens and subrogation claims: Identify medical liens, Medicare/Medicaid interests, and health-plan subrogation early. Notify lien holders and include them in the motion or interpleader to avoid later claims.
- Minor beneficiaries: Consult the probate court and consider getting court approval for a guardian, conservator, or minor settlement. Settlements for minors often need court approval to bind the minor’s future claim.
- Conflicting heirs: If heirs disagree about distribution, ask the court to resolve distribution or use interpleader to avoid payer exposure.
- Timing: Depositing funds with the clerk can slow final payout because the court must resolve outstanding issues before ordering distribution. Plan for that delay.
Where to find forms and local rules: Check the county circuit court clerk’s website for registry deposit forms and instructions. For procedural rules applicable across Michigan, see the Michigan Court Rules.
When to get a lawyer: If funds are substantial, if minors or incapacitated persons are beneficiaries, if multiple competing claims or liens exist, or if the payer faces exposure to inconsistent claims, retain a Michigan attorney who handles wrongful-death and probate matters. An attorney can prepare pleadings, negotiate lien reductions, and obtain the precise court orders needed to protect recipients and the payer.
Key statutes and rules (select): The Michigan Wrongful Death Act: MCL §600.2922 et seq.. For court procedures and funds handling, consult the Michigan Court Rules: Michigan Court Rules. Local county clerk websites provide county-specific registry procedures.
Sample checklist to secure proceeds with the clerk
- Identify the court where the wrongful-death case is pending.
- List all potential claimants and lienholders.
- Prepare and file a motion and proposed order authorizing deposit to court registry (or interpleader).
- Serve notice on all interested parties.
- Obtain the court order and provide deposit instructions to the payer.
- Confirm clerk’s receipt and confirm any fees or release procedures.
- Obtain a court order for final distribution after liens/claims resolved.
Disclaimer: This article is educational only and does not provide legal advice. Laws and local rules change. For advice about your specific situation, contact a licensed Michigan attorney who handles wrongful-death, civil procedure, and probate matters.
Helpful Hints
- Contact the circuit court clerk early and ask for their registry deposit procedure—each county may have different paperwork.
- Use precise payee language on checks to avoid payment rejection (confirm required wording with the clerk).
- Identify and notify all lienholders (medical providers, Medicare/Medicaid, insurers) before deposit.
- If beneficiaries include minors, consult probate court rules; you may need a guardian ad litem or court-approved minor settlement procedure.
- Consider interpleader if multiple claimants exist to protect the payer from multiple liability.
- Keep certified copies of all court orders—clerks often require originals or certified copies before accepting funds.
- Plan for delays—court-supervised deposits can take weeks or months to resolve depending on disputes and lien negotiations.
- Get written confirmation from the clerk when the funds are deposited and learn how interest and fees will be handled.
- Retain counsel if there are complicating issues: substantial sums, disputes between heirs, or governmental subrogation (Medicare/Medicaid).