MARVIN MANDEL, Governor

501

AN ATTORNEY MAY NOT CHARGE OR COLLECT COMPENSATION
FOR LEGAL SERVICES IN CONNECTION WITH THE ARBITRATION OF
A CLAIM UNDER THIS SUBTITLE UNLESS IT IS APPROVED BY THE
ARBITRATION PANEL. AN ATTORNEY MAY NOT CHARGE OR COLLECT
COMPENSATION FOR LEGAL SERVICES IN CONNECTION WITH A
JUDICIAL PROCEEDING UNDER THIS SUBTITLE UNLESS IT IS
APPROVED BY THE COURT.

3-2A08. EFFECT OF ADVANCE PAYMENT.

(A)    EVIDENCE OF ADVANCED PAYMENTS MADE PURSUANT TO
§482B(C) OF ARTICLE 48A OF THE CODE IS NOT ADMISSIBLE IN
ANY ARBITRATION OR JUDICIAL PROCEEDING FOR DAMAGES DUE TO
MEDICAL INJURY UNTIL THERE IS AN AWARD, IN THE CASE OF
ARBITRATION PROCEEDINGS, OR A VERDICT, IN THE CASE OF
JUDICIAL PROCEEDINGS, IN FAVOR OF THE CLAIMANT AND
AGAINST THE PERSON WHO MADE THE ADVANCED PAYMENTS. UPON
THE FINDING OF SUCH AN AWARD OR VERDICT, THE ARBITRATION
PANEL, OR THE TRIER OF FACT, SHALL HAKE A FINDING OF
TOTAL DAMAGES, AND SHALL THEN DEDUCT WHATEVER AMOUNTS IT
FINDS WERE PAID BY OR ON BEHALF OF THE DEFENDANTS
PURSUANT TO SECTION 482B(C) OF ARTICLE 48A. THE NET
AMOUNT, AFTER THIS DEDUCTION, SHALL BE ENTERED AS ITS
AWARD OR VERDICT.

(B)    IF THE AWARD OR VERDICT EXCEEDS THE AMOUNT OF
ADVANCED PAYMENTS AND THE ARBITRATION PANEL OR THE COURT
FINDS THAT THE ADVANCED PAYMENTS WERE REASONABLE, THE
PANEL OR THE COURT MAY (1) ORDER THAT THE AMOUNT BY WHICH
THE AWARD OR VERDICT EXCEEDS THE AMOUNT OF ADVANCED
PAYMENTS BE PAID OVER A PERIOD OF TIME CONSISTENT WITH
THE NEEDS OF THE CLAIMANT, RATHER THAN IN A LUMP SUM, AND
(2) AUTHORIZE, AS PART OF ITS ORDER, THE CREATION OF A
TRUST OR OTHER MECHANISM TO ASSURE THE PERIODIC PAYMENTS.

THE PANEL OR COURT SHALL PROVIDE TO THE CLAIMANT THE

OPTION TO CHOOSE EITHER A LUMP SUM OR PAYMENTS PAID OVER
A PERIOD OF TIME.

(C)    IF THE ADVANCED PAYMENT EXCEEDS THE LIABILITY
OF THE PERSON MAKING IT, THE ARBITRATION PANEL OR THE
COURT ON APPEAL MAY ORDER SUCH ADJUSTMENTS AS JUSTICE MAY
REQUIRE UNDER THE AWARD OR VERDICT, INCLUDING, WHERE
APPROPRIATE, CONTRIBUTION BY OTHER PARTIES FOUND TO BE
LIABLE. IN NO EVENT SHALL AN ADVANCE PAYMENT IN EXCESS
OF THE LIABILITY OF THE PERSON MAKING IT BE REPAYABLE BY
THE PERSON RECEIVING IT.

3-2A09. EFFECT OF PROVISIONS OF THIS SUBTITLE.

THE PROVISIONS OF THIS SUBTITLE SHALL BE DEEMED
PROCEDURAL IN NATURE AND SHALL NOT BE CONSTRUED TO
CREATE, ENLARGE, OR DIMINISH ANY CAUSE OF ACTION NOT
HERETOFORE EXISTING, EXCEPT THE DEFENSE OF FAILURE TO
COMPLY WITH THE PROCEDURES REQUIRED UNDER THIS SUBTITLE.

SECTION 2. AND BE IT FURTHER ENACTED, That new
Section 482A be and it is hereby added to Article 48A —
Insurance Code, of the Annotated Code of Maryland (1972