QUESTION

How will attorney's fees be calculated?

Asked on Nov 13th, 2013 on Personal Injury - Indiana
More details to this question:
In a personal injury case contract, the lawyers fee is stated at x % of the amount collected... ( it does not specify net or gross). Shouldn't the fee be calculated after subrogation fees and expenses are taken out of the total amount that an insurance agrees to pay? What is the incentive for the lawyer to reduce subrogation claims if his money is already decided regardless of how much subrogation charges get applied.? Also, can a lawyer represent both the health insurance and their subrogation charges as well as the victim without the victim' s expressed consent? Shouldn't the health insurance share in the cost of the lawyers feet then? It sounds like a serious conflict of interest to me.
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7 ANSWERS

Personal Injury Attorney serving Charlotte, NC at Paul Whitfield and Associates P.A.
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The fee is of gross. The atty may very well have no ability to control the amount of bills paid, expenses paid, liens paid and subrogation interests. They may eat up a good part of any settlement, and they are not the atty responsibility. The possible conflict you raise is another matter. discuss that with your lawyer
Answered on Nov 19th, 2013 at 8:12 PM

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Edwin K. Niles
Attorney's fee is usually calculated on gross settlement. What makes you think the atty. represents the health ins?
Answered on Nov 18th, 2013 at 8:50 AM

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Thomas Edward Gates
Read the contingency fee agreement, it will address your questions. Or, ask your attorney.
Answered on Nov 18th, 2013 at 8:16 AM

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Chapter 7 Bankruptcy Attorney serving Syracuse, NY at Andrew T. Velonis, P.C.
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Expenses should be deducted from the gross and attorney's fees based on the net recovery. As to subrogation, the concept is that the lawyer gets the money for you, and that's what the fee is based on, and then the subrogation lien is deducted as money that you owe, because this was money expended for your benefit. Sometimes, the subro insurer will reduce the amount of its lien to account for the attorney fees, other times they get a free ride (free for them anyway, you pay for it). The lawyer's duty is to the client and not the lien holder, but you are right, the incentive for reducing the lien is less if the lawyer is getting paid the same regardless. There is still some incentive, in that if the lawyer does a good job, he/she has a satisfied client. As for the victim's consent, no, as mentioned above the victim is also a beneficiary and has had money expended on his/her behalf. Then again, the client has the final say on the settlement as a whole. There are other problems with this system as well.
Answered on Nov 15th, 2013 at 9:29 PM

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Ronald A. Steinberg
After costs are reimbursed, the lawyer gets his fee. His efforts got all the money so his fee is based on that.
Answered on Nov 15th, 2013 at 9:28 PM

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You have a written agreement with your attorney. He or she is duty bound to explain in front how the fee is going to be calculated. If your attorney won't explain it to your satisfaction, submit the question to the Bar Association.
Answered on Nov 15th, 2013 at 7:06 PM

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Medical Malpractice Attorney serving Highland, IN
Partner at Padove Law
4 Awards
This sounds like an exam question, rather than a question from someone seeking legal help. That being said, if, indeed this is a legitimate inquiry, I suggest that you discuss the situation with the lawyer and express your concerns to him or her. He has the most knowledge of your file, the liens and the value of the case.
Answered on Nov 14th, 2013 at 3:59 PM

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