Legal Question in Personal Injury in California

Re: Personal injury money paid out

The attorney should negotiate with the health care providers to fit their liens within the contours of the settlement. Sometimes the rule of thumb is 1/3 for each of the client, attorney, and doctors. Talk to your attorney about you concerns.

Re: Personal injury money paid out

It gets paid from the attorney. The ins. co. pays the total settlement to the atty, he deposits the check in his trust account and then pays the medical bills/liens, takes his fees and costs and pays the client. The atty fees can be adjusted and medical liens can be reduced. It pays for the atty to give the client as much as possible for good will and future business. I will never take more than the client even if I have to reduce my fees.

Re: Personal injury money paid out

Obviously, how much is left depends on how much is paid in the verdict or settlement and how much the medical bills and litigation expenses are.

In the usual case, the defendant's check goes to the attorney and is deposited into the attorney's client trust account, from which the medical bills, litigation expenses, and attorney's fees are paid, and the remainder goes to the client.

The attorney should attempt to negotiate with the medical care providers to reduce their liens, but some care providers (the ones who provide "emergency" care and follow-up) do not have to negotiate under State law.

Litigation expenses (expert witness fees, deposition reporter's fees, investigators' fees, etc.) also are paid out of the injury award --or settlement, before the client gets his share.

40% for the lawyer's fees seems high, unless suit had to be filed and considerable time had to be spent by the attorney in the discovery process and/or in trial. Some attorneys will adjust their fees, if the verdict or settlement amount falls below expectations. (It never hurts to ask.)

I, for one, would not be comfortable, if my fee in a PI case exceeded my client's share, unless the bad result came about because the client had lied to me or failed to disclose an important fact that the other side exploited to submarine our case.

In any event, the client is entitled to a full accounting, in writing, of all amounts that are paid by the defendant, and all amounts that have been paid by the attorney to medical care providers, expert witnesses, etc., as well as the exact amount the attorney claims as his/her fee (and how it was calculated). If you have a dispute about the attorney's fee, you can ask for fee arbitration through the State Bar of California.