Legal Question in Personal Injury in California
Hi, I got Into an accident a year ago and the lady was all at fault, she took full responsibility for it. I remember when I signed my lawyers contract It said 30-35% of whatever I get goes to my lawyers fee. My lawyer called me today and told me the insurance company is going to $19,000 maximum to settle my case. My lawyer told me I will receive 1/3 of that, around $6,000. Is my lawyer breaching contract? Shouldn't I receive 2/3 of the settlement and the 1/3 goes to my lawyer? I think he's trying to rip me off and steal my money, I don't know how to approach or ask him and I don't have the contract I signed over a year ago. Help please.
4 Answers from Attorneys
The first step is to obtain a copy of the Retainer Agreement, which will outline exactly what the percentage of the attorney's fee should be. Ask your attorney's office for a copy.
The second step is to understand what is involved in the equation when calculating net settlement (your take home). The following is a list of the typical items that go into this calculation:
(A) GROSS OFFER - settlement amount ($19,000)
(B) LITIGATION COSTS - this is the amount that the attorney's office spent in litigating your case (i.e. postage, copying, filing fees, records fees, etc.). Your attorney should provide an accounting of these costs.
(C) ATTORNEY'S FEES - this is the percentage that you're referring to (30-35%). The Retainer Agreement will tell you exactly what the percentage is.
(D) LIENS - this is the amount of money that you need to pay to health insurance companies for the medical treatment that they paid on your behalf. Typically your attorney will negotiate a reduction on this amount for you. Ask your attorney if this was done, and how much of a reduction that was.
There is some variation of what the actual equation is, so you should ask your attorney to explain the calculation to you. But, in essence, the equation is the following:
A - (B+C+D) = NET SETTLEMENT
In order to determine whether $6,000 is an accurate amount, you need to know what A, B, C, and D are. Get those numbers from your attorney and do the math yourself. Or, ask your attorney to explain all the above to you.
Best of luck to you!
Ask your attorney for an itemization. He/she may be repaying costs paid out to file your lawsuit, if applicable. Also, read your attorney-client retainer agreement. Your attorney is bound by what that agreement states. If you have a question about why your cut is a certain amount, ask your attorney to explain it to you. If you think he/she is breaching the agreement with you, call an attorney to discuss.
Your medical bills may be coming out of that settlement too. Ask the attorney for a copy of the retainer agreement and go over it carefully.
After his 1/3 is paid, and after the medical bills and liens are paid, you probably will only receive about 1/3 in a typical case. Go talk to the attorney for the details of all deductions and payments to be made.