Legal Question in Personal Injury in Massachusetts
3rd party award split
After my 3rd party settlement (I was injured at work) agreement, all parties involved (the insurance, the lawyer as well as myself) split the overall amount. My lawyer said that his percentage gets taken out first (so that his portion is maximized). However, the insurance took its part first and my lawyer and I were left with the rest. Then, when the lawyer took his portion, he based it on the initial amount, instead of what was left over after the insurance took its part. It does not make sense to me that both the insurance and the lawyer can take their percentage from the overall amount. Do the party not have to base their percentages on what is left over after the previous party has taken its share? Also, after the insurance took its part, the check with the left over amount was addressed to my lawyer and myself. Does that mean that the lawyer had to base his insurance on that amount, or was he indeed allowed to base it on the overall amount? Thanks for your help!
2 Answers from Attorneys
Re: 3rd party award split
Your lawyer is correct.
Re: 3rd party award split
Your question is probably answered by reading your contingent fee agreement with your lawyer. If it says 1/3 of the gross amount, then the lawyer gets one-third of the gross amount collected. If the agreement says the net amount, then your lawyer's fee is only what he recovers for you after liens are paid. I think you would be happy that the lienholder has to pay attorney's fees to get its recovery, just like you, and does not get a free ride. If you agreed the lawyer will be paid 1/3 of the gross amount collected, then you really have no complaint except possibly to blame yourself. Good luck. Regards, JBS
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