[First Reprint]

SENATE, No. 1464

 

STATE OF NEW JERSEY

 

INTRODUCED SEPTEMBER 19, 1996

 

 

By Senator BYRANT

 

 

An Act concerning child support judgements, supplementing Title 2A of the New Jersey Statutes and repealing P.L.1995, c.334.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. a. A judgement for child support entered pursuant to P.L.1988, c.111 (C.2A:17-56.23a) and docketed with the Clerk of the Superior Court shall be a lien against the net proceeds of any settlement negotiated prior or subsequent to the filing of a lawsuit, civil judgement, civil arbitration award or worker's compensation award and shall have priority over all other civil judgements unless otherwise provided by law. The lien shall stay the distribution of the net proceeds to the prevailing party until the child support judgement is satisfied. As used in this act "net proceeds" means any amount of money, in excess of $2,000, payable to the prevailing party after attorney fees, witness fees, court costs, fees for health care providers and other costs related to the lawsuit or settlement are deducted from the award and "prevailing party" shall not include a partnership, corporation, government entity or minor child.

    b. Before distributing any net proceeds of a settlement, judgement or award to the prevailing party; 1(1) the prevailing party shall provide the attorney or insurance company responsible for the final distribution of such funds with a certification that includes the prevailing party's full name, mailing address, date of birth and social security number; and (2)1 the attorney representing the prevailing party shall initiate a search of child support judgements, through a private judgement search company that maintains information on child support judgements, to determine if the prevailing party is a child support judgement debtor. If the prevailing party is not represented by an attorney, the judgement search shall be initiated by the opposing attorney or an insurance company before the proceeds are distributed to the prevailing party. 1In a worker's compensation action, the insurance company shall initiate the judgement search.1 The judgement search company shall provide a certification to the attorney, insurance company or party initiating the lawsuit identifying whether or not the prevailing party is a child support judgement debtor.

    If there are no attorneys representing either party in a civil lawsuit, the party bringing the lawsuit shall initiate the judgement search and shall be required to file the certification with the court at least 10 working days prior to the trial or with the stipulation that the certification shall be filed at the time of the settlement or dismissal of the lawsuit.

    For monies deposited with the court, no distribution of funds shall be made until the attorney or prevailing party provides the Clerk of the Superior Court with a copy of the certification showing that the prevailing party is not a child support judgement debtor.

    The fee for a judgement search is chargeable against the net proceeds as a cost of the settlement, judgement or award.

    c. If the certification shows that the prevailing party is not a child support judgement debtor, the net proceeds may be paid to the prevailing party immediately. If the certification shows that the prevailing party is a child support judgement debtor, the attorney or insurance company that initiated the search shall contact the Probation Division of the Superior Court to arrange for the satisfaction of the child support judgement. The attorney or insurance company shall notify the prevailing party of the intent to satisfy the child support judgement prior to the disbursement of any funds to the prevailing party. Upon receipt of a Warrant of Satisfaction for the child support judgement, the attorney or insurance company shall pay the balance of the settlement, judgement or award to the prevailing party. If the net proceeds are less than the amount of the child support judgement, the entire amount of the net proceeds shall be paid to the Probation Division as partial satisfaction of the judgement.

    If there are no attorneys representing either party in a civil lawsuit and the certification filed with the court shows that the prevailing party is a child support judgement debtor, the court shall order that the opposing party pay the amount of the child support judgement to the Probation Division before any funds are paid to the prevailing party. The opposing party shall also insure that any judgement related to the lawsuit docketed with the Clerk of the Superior Court reflect the Probation Division's superior claim to such funds.

    d.    1An attorney or insurance company shall not be liable for distributing net proceeds to the prevailing party based on the results of a judgement certification showing the prevailing party is not the debtor of a child support judgement, if it is later shown that the prevailing party provided inaccurate personal information on the initial certification to the attorney or the insurer.1

     1[d.]e.1 An attorney who, in accordance with this act, satisfies a child support judgement from the net proceeds of a settlement, judgement or award, shall not be liable for payments which otherwise would have been made pursuant to subsection a. of this section which were not so identified to the attorney at the time of satisfaction.

    1[e.]f.1 An attorney who, or insurance company that, in accordance with this act, satisfies a child support judgement from the net proceeds of a settlement, judgement or award, shall not be liable to the prevailing party or to the prevailing party's creditors.

    1[f.]g.1 An attorney shall not be required to challenge a child support judgement unless retained by the prevailing party to do so.

    1h. A private judgement search company is prohibited from using any information provided by an attorney or insurance company in accordance with this act for any purpose other than: (1) determining if the prevailing party is the debtor of a child support judgement; and (2) preparing a certification as required pursuant to subsection b. of this section.1

 

    2. The Supreme Court may promulgate rules to effectuate the purposes of this act.

 

    3. P.L.1995, c.334 (C.2A:17-56.37 et seq.) is repealed.

 

    4. This act shall take effect immediately.

 

 

                          

 

Provides for the establishment of liens on net proceeds of settlements, judgements or awards to pay for child support judgements.