What should I do if an attorney is trying to overcharge me for an auto accident case? 24 Answers as of February 17, 2012

On July 2010 I was rear ended while on duty. That day I was transported to the hospital and scheduled a follow-up with the workers comp doctors. Upon several visits the doctor advised that neck and hip pain were pre-existing, so I decided to get a Lawyer. I went to Lawyer A who has represented me up until Nov 2011. On November 19, I received an email from Lawyer A who advised me the insurance company wants to settle my case for $12,500 with me receiving $5,000. I advised Lawyer A that price would not work, because I have been seeking treatments (message therapy, and acupuncture) using my personal insurance. I did not know when I was using my personal insurance, depending on how the treating doctor codes it, the insurance company can seek for me to pay them back in the future (information told to me by Lawyer A’s staff) . In addition, Lawyer A’s staff advised me to not go back to my worker’s comp doctor because my bill was too high, and for me to see a personal injury and car accident doctor. When I advised Lawyer A that did not want to settle my case with the insurance company for $12,500 with me receiving $5,000, Lawyer A offered me $6,000. I advised Lawyer A that price would not work as well and I would contact their office at a later date. I then found Lawyer B, explained the entire situation to them and signed an agreement with them and terminated Lawyer A due to me not being satisfied with the services they provided me throughout the entire time. Almost a month later Lawyer B contacted me advising me that I was untruthful and they are deciding to not take my case because per the insurance company Lawyer A settled my case for $12,500 on November 19th, and a check was already over nighted to Lawyer A’s office. Now that was unbeknownst to me. I then contacted Lawyer A and their staff advised me the insurance company was in a rush and just mailed them a settlement check in attempts to clear their books before the end of the year.

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Law Office of Jared Altman
Law Office of Jared Altman | Jared Altman
I have never heard of an insurance company sending out a check for more than peanuts without having a general release with your notarized signature. I think that you need to meet win lawyer A and review your file with that lawyer and find out what is going on.
Answer Applies to: New York
Replied: 1/5/2012
Chalat Hatten & Koupal PC
Chalat Hatten & Koupal PC | Linda Chalat
Under the rules of professional conduct, a personal injury lawyer is prohibited from settling a client's claims without clear authorization from the client to do so. If Lawyer A did not have authorization from you to settle your claims, then this is a matter which you may wish to discuss with the Attorney Regulation Office of the Colorado Supreme Court: http://www.coloradosupremecourt.com/Regulation/Complaints.htm
Answer Applies to: Colorado
Replied: 1/5/2012
Law Office of William L Spern | William Spern
In Michigan, fees are covered by court rule and statute. I know of no such rule or law that would give your attorney such an exorbitant fee. However, fees and costs could add up to a total larger that normal. Ask your attorney for an itemized statement of the proposed payout before you agree to any settlement.
Answer Applies to: Michigan
Replied: 1/5/2012
McKell Christiansen
McKell Christiansen | Michael McKell
You need to make sure Lawyer A did not approve the settlement after you specifically told him not to. If the lawyer settled the case without your authorization, that is a major ethics violation for the lawyer for which you should contact the your local state bar.
Answer Applies to: Utah
Replied: 1/5/2012
R. D. Kelly Law Firm, P.L.L.C.
R. D. Kelly Law Firm, P.L.L.C. | Robert Kelly
You should speak with Lawyer A about that. You should also examine the retainer agreement you signed with Lawyer A and refresh your memory regarding how you are contractually bound and obligated by that agreement.
Answer Applies to: Washington
Replied: 1/5/2012
The Law Offices of Paul A. Samakow, P.C.
The Law Offices of Paul A. Samakow, P.C. | Paul A. Samakow
Your question and facts do not make clear what you are actually asking. It appears you want to know what to do. If your first attorney settled your case without your permission, you have a claim against him.
Answer Applies to: Virginia
Replied: 1/5/2012
Bernard Huff, Attorney/Mediator
Bernard Huff, Attorney/Mediator | Bernard Huff
Perhaps, you should seek specific legal advice and direction from a third attorney. That attorney may contact the insurance company and explain your dissatisfaction with the $12,500 proposed settlement offer. That third lawyer may also be capable of reopening the settlement negotiations on your insurance claim or may file a lawsuit on your behalf.
Answer Applies to: Indiana
Replied: 1/4/2012
Dwyer, Black & Lyle, LLP
Dwyer, Black & Lyle, LLP | Kevin Habberfield
Any lawyer you hire is only permitted to a fee that is detailed in your retainer agreement. They also must provide you with an accounting or breakdown sheet that explains where every penny in the case has gone. A case cannot be settled without your agreement and you would have to sign a release giving up your rights to proceed further with the case. Your private health insurance's ability to subrogate or recoup their expenses from you is quite small due to a law passed in 2008. I think you need to meet with Lawyer A and ask for a breakdown sheet and find out exactly what has been done. Also, if you were injured on the job all of your medical should be paid for by worker's compensation, regardless of how much the bill is. If your treatment providers billed the wrong insurance that is more their problem than yours. That being said, they should be made aware of it so they can try to correct it. If you are successful in your third party case, WC is entitled to be paid back about 2/3 of what they have paid you and your treatment providers. You've got a lot going on. Go see your first attorney and get to the bottom of this. If you are unhappy there, go back to Lawyer B and explain what has happened. Good luck.
Answer Applies to: New York
Replied: 1/4/2012
Andrew T. Velonis, P.C.
Andrew T. Velonis, P.C. | Andrew Velonis
This does not add up. Someone says that you were not being truthful. Why was that? There are some complications here: Since it was a car accident while you were working, you are covered both by Workers Comp and by No-Fault, so there would be no need to put this on your personal insurance. There should be no lien, for the same reason. I don't know what to make of your use of the phrase "workers comp doctor". The lawyer's fee is based on a percentage, usually one-third after expenses. So, if the offer is 12.5G and the expenses are $500, that brings it down to 12G even, your lawyer gets 4 and you get 8. I have never heard of an insurance company issuing a check without a signed release. Also, the insurance company is required to send you a written notice advising you that the check has been issued. So, I don't know what to make of all this. You could file a complaint with the local Grievance Committee and they will assign an investigator.
Answer Applies to: New York
Replied: 1/4/2012
Paul Whitfield and Associates P.A.
Paul Whitfield and Associates P.A. | Paul L. Whitfield
I don't know what "overcharge" means in this situation. Attorney fees are set by contract and approved by the Industrial Commission. The value of your claim is based on what the doctors say about your injury, not what you or your lawyer say or think.
Answer Applies to: North Carolina
Replied: 1/4/2012
    Dunnings Law Firm
    Dunnings Law Firm | Steven Dunnings
    You might want to file a grievance with the State Bar of Michigan against lawyer A.
    Answer Applies to: Michigan
    Replied: 1/4/2012
    Kelaher Law Offices, P.A.
    Kelaher Law Offices, P.A. | James P Kelaher
    Without your consent, there is no settlement. If Lawyer A has already deposited the check, he's got some 'splaining to do (as Desi Arnaz used to say) to the insurance company, and he better be prepared to send his trust check back to the insurance company for the full amount of the check it sent to him.
    Answer Applies to: Florida
    Replied: 1/4/2012
    Lombardi Law Firm
    Lombardi Law Firm | Steve Lombardi
    Right now you just have a bunch of what-ifs and that doesn't work for me or my clients. Ask for a written disbursement sheet showing the gross recovery, attorney fees, litigation expenses and how the checks for subrogation will be made out. That is the place to start.
    Answer Applies to: Iowa
    Replied: 1/4/2012
    Counard & Heilmann Law Office | Michael Heilmann
    A case is not settled until you sign a release. If no release has been signed, the case is not settled. If you do not want to settle the case, you do not have to settle the case. It is not a matter of your attorney "overcharging you", it is a matter of communication. You need to communicate your concerns to your attorney or get another attorney. Good Luck.
    Answer Applies to: Michigan
    Replied: 1/4/2012
    Adler Law Group, LLC
    Adler Law Group, LLC | Lawrence Adler
    If you did not authorize the settlement and did not sign a release the lawyer can return the check to the insurance company and continue the case so you can hire new attorney. If the lawyer is acting contrary to your direction and is taking a fee outside of your retainer agreement you can file a grievance with the State bar association.
    Answer Applies to: Connecticut
    Replied: 1/4/2012
    EJ Leizerman & Associates | Michael Leizerman
    A lawyer cannot settle your case without your permission. If you instructed lawyer A to settle, a court will likely uphold the settlement. If, as you indicated, you did not give permission, then either there should be no settlement or lawyer A should be resposible to you. It seems like lawyer B took your story at face value, but then learned something that that led them to change their mind. Did they learn something that led them to believe that you did in fact give permission? I hope that you are able to work this out to your satisfaction.
    Answer Applies to: Ohio
    Replied: 1/4/2012
    Matthew D Kaplan LLC
    Matthew D Kaplan LLC | Matthew D Kaplan
    I would first look at your fee agreement with Lawyer A. It should explain everything to you. Then I would go in and see Lawyer A and have them explain where the money is going. Typically attorneys charge between 25%-1/3% attorney fees. Some lawyers do take this off the gross settlement while others make sure that any medical liens are paid first. The lawyer may also have costs, which are in addition to any fees. If you still feel like Lawyer A is in violation of your fee agreement, then I would contact the Oregon Bar. They have a fee arbitration program. Remember, this is about what is in your contract, not what you feel your attorney should charge you. Your case cannot be settled until you have signed a Release, even if the insurance company sent a check in the mail.
    Answer Applies to: Oregon
    Replied: 1/4/2012
    Craig Kelley & Faultless
    Craig Kelley & Faultless | David W. Craig
    I do not think that the issue is whether or not lawyer is charging too much. I think the issue is whether or not the case settled. If you did not authorize your attorney to settle then he had no right to settle your case. Based on your e-mail it is possible that the case did not settle and the insurance company just sent a check. Not likely but possible. If the case settled then I am sure that the insurance company will have documentation of an offer and of the acceptance of that offer. Since you haven't signed anything (release or the check) you should hire a new attorney to contact the insurance company and let them know that the case isn't settled. Then you can go forward with your claim. However if the insurance company says that the case is settled and they can prove that your attorney made or accepted an offer then your claim may be against the lawyer.
    Answer Applies to: Indiana
    Replied: 1/4/2012
    The Margolis Firm
    The Margolis Firm | Charles J. Candiano
    There are many things going on here. First and foremost, there is no settlement unless you signed a release. No attorney is going to take a case after a prior attorney has negotiated a settlement unless the settlement was for nuisance value because any successor attorney would understand that the prior attorney would have a lien on the file. You have a claim under the Illinois Worker's Compensation Act and you have a third-party negligence claim for personal injury. Apparently, the attorney who you hired is only handling the third-party action against the driver who hit you. You probably signed a contingency fee agreement with that attorney whereby the attorney would be entitled to a fee of one third of whatever he or she recovered. As long as you are pursuing a claim under the Illinois Worker's Compensation Act, that contract is not valid. The Illinois Worker's Compensation Act expressly provides that the Workers' Compensation insurance carrier is entitled to be reimbursed for 75% of all costs incurred. This would include all TTD (temporary total disability), all medical bills, and all monies paid for the permanent injury to your body. Accordingly, the attorney's fee on a third party claim related to a Worker's Compensation claim is limited to 25% of the amount recovered. If you hire an attorney to handle your Workers' Compensation claim, that attorneys fee will be limited, by statute, to 20% of the amount recovered. Because these injuries were work related, all of care must be rendered under Worker's Compensation without any cost to you. If your group health insurance carrier was billed by accident, you simply need to contact all of the providers and give them the Workers' Compensation insurance information. Your attorney should do this. You have not disclosed the nature of your injury, your income, or your lost wages so it is impossible for anyone in this forum to render an opinion as to whether the proposed settlement is fair. Oftentimes, the value of the Workers' Compensation claim in these cases far exceeds the value of the personal injury claim. Accordingly, with rare exception, you should not settle the personal injury claim until you settle the Workers' Compensation claim. The best course of action would have been for you to hire an attorney who is well familiar with both Worker's Compensation cases and personal injury cases so that the efforts could be coordinated.
    Answer Applies to: Illinois
    Replied: 1/4/2012
    Ford, Howard & Cornett, P.C. | Bradley Cornett
    If you have a problem with your attorney's fee, you should contact the Alabama State Bar The Alabama State Bar has a fee resolution service where they try to help attorneys and clients mediate a fee arrangement that is fair to both sides.
    Answer Applies to: Alabama
    Replied: 1/4/2012
    Gilbert & Bourke, LLP | Brian J. Bourke
    Your case is not settled until you sign a Release prepared by the defendant's insurance company. You still can get a second attorney and Attorney A will only receive the reasonable value of his services at the time the case actually settles. If there is a disagreement with the amount of his fee at that time, you can arbitrate that dispute. There is also the issue of the worker's compensation insurance being repaid for what they paid on your behalf. You should find a new lawyer in your community as soon as possible to resolve all these issues.
    Answer Applies to: California
    Replied: 1/4/2012
    Bulman Law Associates PLLC Injury Law Firm
    Bulman Law Associates PLLC Injury Law Firm | Thomas Bulman
    Your story is all mixed up. If you have worker's comp insurance, why would your health insurance even come into play? Call Lawyer a and ask for any accounting of the way the settlement will be divided. If they are paying some of your outstanding bills as a part of the settlement or costs they incurred in preparing your case, then this scenario looks typical. The lawyer offered a fee reduction so pay the woman. Take your $6k and pay down your credit cards.
    Answer Applies to: Montana
    Replied: 1/4/2012
    The Law Office of Harry E. Hudson, Jr.
    The Law Office of Harry E. Hudson, Jr. | Harry E. Hudson, Jr.
    I do not handle workers comp cases. However, it is my understanding that fees allowed are approved by the court and are at 8 -13%. I could be wrong. Laws do change and it has been years since I appeard on a WC case. I suggest that you contact the California State Bar. You can do that on line. Do not tell the attorney that he must give you money or you will file a complainty - that is extortion and a felony. Send him a letter stating that dispute the proposed settlement. That you insist that he provide you with a copy of your fie immediatey incuding all billing information and correspondence with the carrier.
    Answer Applies to: California
    Replied: 1/4/2012
    Ewusiak & Roberts, P.A.
    Ewusiak & Roberts, P.A. | Christopher J. Roberts
    It sounds like Lawyer A may have settled without your permission. The insurance company may be able to enforce that settlement if they had basis to believe that Lawyer A had your authority, even if he did not. This is something you should discuss with Lawyer B. If you can have the settlement set aside due to your lack of permission, you can go back and pursue your claim like nothing happened. If you lose that battle, you may have a claim against Lawyer A. Lawyer B may or may not be willing to help you with that, but if Lawyer B will not then another lawyer probably will. If Lawyer A settled your case without your permission, you also probably have a basis to file a bar complaint against him with the Florida Bar.
    Answer Applies to: Florida
    Replied: 2/17/2012
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