NorGUARD Insurance Company v. Chavero Velazquez CA6

I. INTRODUCTION

Appellant Alejandro Chavero Velazquez reportedly suffered a dog bite injury while working for his employer. A workers’ compensation case is apparently still pending against his employer and the workers’ compensation carrier, respondent NorGUARD Insurance Company. Appellant also filed a personal injury action against the homeowners who allegedly owned the dog. In the personal injury action, respondent filed a notice of lien in the amount of $89,176.27, relating to workers’ compensation benefits that respondent had allegedly paid to appellant. Eventually, the personal injury action between appellant and the homeowners settled, with the settlement agreement providing, among other things, that the homeowners’ insurer would pay $109,587.11 to appellant’s attorney “to be held in trust and not disbursed at all until the [workers’ compensation] lien is fully resolved by settlement or judicial order.” Appellant and respondent were unable to settle the workers’ compensation lien. As a result, respondent filed the instant civil action against appellant for breach of contract, alleging that appellant’s “failure to perform under the [settlement agreement] by payment to…