Legal Question in Workers Comp in Michigan

Re: Money Paid to Attorney Before Claim is Settled?

The rule in Michigan is actually that an attorney cannot pay for the costs and expenses on a case. Most attorneys, including myself, pay for the costs and expenses in the case and then deduct said costs and expenses out of the recovery, and then disburse the remainder according to the fee agreement. However, in some cases, such as those cases where I might agree with a client to accept less than one-third fee or those business clients who I know can pay, the client actually pays the costs. This is rare, but regardless, the client would eventually pay no matter what. Furthermore, even in a case that is a loser, that is, no recovery at all, the client is still responsible to pay the costs of the case (but there is no rule that says the attorney must try and collect it). Your case is rare, but in no way wrong or unethical on behalf of the attorney. You should review your fee agreement (every contingent case absolutly requires a written fee agreement, even a worker's compensation case) and determine if you are supposed to be paying costs as you go. If not, stop. If so, well, that the deal you made and you are going to have to live with it.