Legal Question in Workers Comp in North Carolina

W/C settlement bypass counsel

I don't know which side, the claimant or the insurer, is worse. The insurance company is ethically obligated to negotiate through counsel for a representated party, and shouldn't even contact the claimant directly, much less negotiate a settlement. So the very contact is wrongful.

The claimant is foolish. and certainly violated the spirit, if not the letter, of the retainer agreement.

The next question is, what happens to the attorney's fee. It should be paid from the settlement. A client has a right to accept a settlement against the attorney's advice, so the attorney can't necessarily complain if the settelment is inadequate. But if the settlement must be approved by the comp bureau in your state, it's helpful to have the consent and recommendation of claimant's counsel.

In short, the conduct implied in your question is reprehensible. That's what it implies. The client is liable for the attorney fee. The insurance company, if any attorneys were involved on its side, might face disciplinary charges.

The above does not constitute legal opinion and is offered for the purposes of discussion only. The law differs in every jurisdiction, and you should not rely on any opinion except that of an attorney you have retained, who has a professional duty to advise you after being fully informed of all the pertinent facts and who is familiar with the applicable law.