AboutDoctor Settlement Expertise 27 years of front line plaintiff`s trial lawyer experience in PERSONAL INJURY INSURANCE CLAIMS. Along with other attorneys and insurance adjusters, we have created a website to help injured people settle their own personal injury claims. With the help from feedback from hundreds of satisfied members, www.settlementcentral.com has become THE AUTHORITY for Internet personal injury insurance claim settlements. I am humbled and honored if people can benefit from my experience and current volunteer work in helping injured people. I hope I can explain things in a manner that is useful for the questioner. If not, do not hesitate to e-mail me and I will take a second shot at it! Best Wishes for your physical and financial recovery.
Experience
Life Experience: 27 years of front line plaintiff's trial lawyer experience
Organizations: American Trial Lawyers Association (AAJ)
Washington State Trial Lawyers Association
Awards and Honors:
I am humbled and honored everytime I am selected to help injured people. And when people give feedback that they have benefited from my experience and current volunteer efforts, then that is a double honor and award for me.
Question My attorney has a 33% fee if he recover but i have to pay out of pocket expense no matter what. I thought if i dont i dont pay. Also what is the meaning of a contingent attorney fee? Does this exclude out of pocket expense?
Answer Hi JB,
Yes, the attorney is CORRECT: the client MUST pay all of the costs. Otherwise, the state bar association can sanction her. I am not sure of the true basis of those rules, but perhaps here is why. Maybe they were adopted because the society does NOT want attorneys running around offering to pay all costs if injured persons will sign up with them because that is encouraging litigation.
Yes, I know: with the advertising that the phone books and TV advertising staffs claim we need to buy, it is perhaps hard to see that we are not already pushing litigation. But at least the client does have to pay, so that is perhaps thought to discourage some would-be litigants.
Anyway, no matter what the reason, the rule does exist: attorneys may front the costs as they go along, but in the end distribution of the settlement, they are SUPPOSED to be borne by the client.
But that is not always the case. Sometimes attorneys will waive part of their fees equal to the costs if they think that they have brought in only a marginal settlement. So ALWAYS AS FOR A FEE WAIVER equal to maybe half the costs. Does not hurt to ask.
The contingency fee means that if they collect no money, you pay no fee. That seems to be straight forward. BUT here is the catch: many attorneys are taking their fees on the GROSS AMOUNT RECOVERED, including medical bills paid by the first party carrier (the client's insurer), which are going to be paid directly back to the client's insurer anyway.
Want to see how this works? First understand subrogation. Introduction to Subrogation http://www.settlementcentral.com/page0459.htm Insurance Companies Want Forced Payback to YOUR OWN Insurer From Your Personal Injury Award
NEXT, consider this example. One attorney agrees to take his fee on the net, but a second attorney takes her fee on the gross. Let's say that the settlement amount is $15,000, and that there is $4,600 in medical bill payments owing back on subrogation.
The first attorney takes a fee on the net of $11,400. One-third is $3,800, and the balance of the net goes to the client ($7,600). The client's insurer gets their subrogation of $4,600.
In the second example, the attorney takes her fee of $5,000 off the gross, leaving the $4,600 for subrogation, and the residue of $5,400 to the client.
In this example, the client could have saved $2,200 if he had insisted upon a net fee arrangement.
If you have an arrangement to take the fee on the gross, see how easy the liability is going to be. If it is a "gimmie", then ask for an amendment to take her fees on the net, or maybe a compromise of the gross less one-half of the subrogation amount. If she disagrees, then consider taking your file out of the office. FIRST, however, consult a second attorney before making such a precipitous move.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
