Legal Question in Personal Injury in Maryland
When attorney works on contigency and leaves you worse off
If a lawyer presents you with a settlement agreement that leaves you worse off than you would if been if you had done nothing, do you have to accept the agreement because of his part of the fees? I was crippled by a sleeping driver. My husband hired an attorney. The attorney knew from numerous letters that my health insurance was going to claim that part of the settlement that was owed at the time of settlement. When he finally came up with a settlement offer, it was a settlement with my own insurance company (no one else) for my own undersured amount which, after his cut, would leave me in debt to my medical insurance to the tune of his fee. He then said that for additional outlay of money on my part, he would investigate whether the negligent driver had any assets. I am already paying my deductible on my medical and this settlement would add $25K to my current debt. If I let the had not trusted this lawyer, I would only have bills from the deductables.
2 Answers from Attorneys
Re: When attorney works on contigency and leaves you worse off
It sounds like the person who caused your accident either had no insurance or minimal insurance, and that your underinsured motorist insurance on your own policy was likewise not enough to sufficiently compensate you for the full extent of your loss. Apparently the attorney got the insurance company to offer its policy limits, which is all it is contractually required to pay. The attorney told you the only alternative to accepting their offer was to do a financial investigation of the sleeping driver to see if he might have significant enough personal assets to merit filing suit and hoping to get a higher award in court. I've rarely found it to be worth the expense to conduct this kind of investigation, since someone who doesn't carry any or much insurance usually lives from paycheck to paycheck (if they even get a paycheck).
What the attorney should have tried to do was negotiate with your health insurance company to accept partial reimbursement of their medical outlay on your behalf so that some of that insurance money could have gone to you. You didn't indicate if he took this approach. But once you hired the attorney to get you a recovery on a contingency basis, and he got that recovery, he's entitled to be paid for the work he did, and you can't avoid paying him just because you decide to reject the settlement.
Re: When attorney works on contigency and leaves you worse off
You do not have to accept this settlement. You do not
have to accept any settlement. If the attorney is working
on a PURE contingency basis, he has no right to any fee whatsoever where
there is no recovery despite you not having accepted a settlement offer.
Are you sure there is no case against the sleeping driver?
Ordinarily, a medpay only (i.e., where the settlement is for medical costs only)
are not subject to a contingency fee. However, the terms of your attorney fee agreement may vary
in this regard. You may consider indicating to the attorney that you are seeking to transfer the
case to another attorney which, if you have a pure contingency agreement, would cut him off
of any fee. Be careful as there may be statute of limitation issus that would then preclude you from any recovery. Alternatively, you could request a fee reduction.
Contact me if you require assistance, (410) 799-9002.
DISCLAIMER: NO LEGAL ADVICE IS PROVIDED HEREIN. ATTORNEY
HAS NOT BEEN PROVIDED WITH ALL NECESSARY INFORMATION WITH
WHICH TO PROVIDE LEGAL ADVICE.
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