What should I do if an attorney is trying to overcharge me for an auto accident case?

Question

On July 2010 I was rear ended while on duty. That day I was transported to the hospital and scheduled a follow-up with the workers comp doctors.  Upon several visits the doctor advised that neck and hip pain were pre-existing, so I decided to get a Lawyer.  I went to Lawyer A who has represented me up until Nov 2011.  On November 19, I received an email from Lawyer A who advised me the insurance company wants to settle my case for $12,500 with me receiving $5,000.  I advised Lawyer A that price would not work, because I have been seeking treatments (message therapy, and acupuncture) using my personal insurance.  I did not know when I was using my personal insurance, depending on how the treating doctor codes it, the insurance company can seek for me to pay them back in the future (information told to me by Lawyer A’s staff) .  In addition, Lawyer A’s staff advised me to not go back to my worker’s comp doctor because my bill was too high, and for me to see a personal injury and car accident doctor.  When I advised Lawyer A that did not want to settle my case with the insurance company for $12,500 with me receiving $5,000, Lawyer A offered me $6,000.  I advised Lawyer A that price would not work as well and I would contact their office at a later date.  I then found Lawyer B, explained the entire situation to them and signed an agreement  with them and terminated Lawyer A due to me not being satisfied with the services they provided me throughout the entire time.  Almost a month later Lawyer B contacted me advising me that I was untruthful and they are deciding to not take my case because per the insurance company Lawyer A settled my case for $12,500 on November 19th, and a check was already over nighted to Lawyer A’s office.  Now that was unbeknownst to me.  I then contacted Lawyer A and their staff advised me the insurance company was in a rush and just mailed them a settlement check in attempts to clear their books before the end of the year.

Jared Altman · Answer

I have never heard of an insurance company sending out a check for more than peanuts without having a general release with your notarized signature. I think that you need to meet win lawyer A and review your file with that lawyer and find out what is going on.

Linda Chalat · Answer

Under the rules of professional conduct, a personal injury lawyer is prohibited from settling a client's claims without clear authorization from the client to do so.    If Lawyer A did not have authorization from you to settle your claims, then this is a matter which you may wish to discuss with the Attorney Regulation Office of the Colorado Supreme Court: http://www.coloradosupremecourt.com/Regulation/Complaints.htm

William Spern · Answer

In Michigan, fees are covered by court rule and statute. I know of no such rule or law that would give your attorney such an exorbitant fee. However, fees and costs could add up to a total larger that normal. Ask your attorney for an itemized statement of the proposed payout before you agree to any settlement.

Michael Mckell · Answer

You need to make sure Lawyer A did not approve the settlement after you specifically told him not to.  If the lawyer settled the case without your authorization, that is a major ethics violation for the lawyer for which you should contact the your local state bar.

Paul Samakow · Answer

Your question and facts do not make clear what you are actually   asking.  It appears you want to know what to do.  If your first   attorney settled your case without your permission, you have a claim   against him.

Kevin Habberfield · Answer

Any lawyer you hire is only permitted to a fee that is detailed in your retainer agreement. They also must provide you with an accounting or breakdown sheet that explains where every penny in the case has gone. A case cannot be settled without your agreement and you would have to sign a release giving up your rights to proceed further with the case. Your private health insurance's ability to subrogate or recoup their expenses from you is quite small due to a law passed in 2008. I think you need to meet with Lawyer A and ask for a breakdown sheet and find out exactly what has been done. Also, if you were injured on the job all of your medical should be paid for by worker's compensation, regardless of how much the bill is.  If your treatment providers billed the wrong insurance that is more their problem than yours. That being said, they should be made aware of it so they can try to correct it. If you are successful in your third party case, WC is entitled to be paid back about 2/3 of what they have paid you and your treatment providers.  You've got a lot going on. Go see your first attorney and get to the bottom of this. If you are unhappy there, go back to Lawyer B and explain what has happened.   Good luck.

Bernard Huff · Answer

Perhaps, you should seek specific legal advice and direction from a third attorney. That attorney may contact the insurance company and explain your dissatisfaction with the $12,500 proposed settlement offer. That third lawyer may also be capable of reopening the settlement negotiations on your insurance claim or may file a lawsuit on your behalf.

Andrew Velonis · Answer

This does not add up.  Someone says that you were not being truthful.  Why was that?  There are some complications here:  Since it was a car accident while you were working, you are covered both by Workers Comp and by No-Fault, so there would be no need to put this on your personal insurance.  There should be no lien, for the same reason.  I don't know what to make of your use of the phrase "workers comp doctor".  The lawyer's fee is based on a percentage, usually one-third after expenses.  So, if the offer is 12.5G and the expenses are $500, that brings it down to 12G even, your lawyer gets 4 and you get 8.  I have never heard of an insurance company issuing a check without a signed release.  Also, the insurance company is required to send you a written notice advising you that the check has been issued.  So, I don't know what to make of all this.   You could file a complaint with the local Grievance Committee and they will assign an investigator.

Steven D. Dunnings · Answer

You might want to file a grievance with the State Bar of Michigan against lawyer A.

Paul Whitfield · Answer

I don't know what "overcharge" means in this  situation. Attorney fees are set by contract and approved by the Industrial Commission. The value of your claim is based on what the doctors say about your injury, not what you or your lawyer say or think.

James Kelaher · Answer

Without your consent, there is no settlement. If Lawyer A has already deposited the check, he's got some 'splaining to do (as Desi Arnaz used to say) to the insurance company, and he better be prepared to send his trust check back to the insurance company for the full amount of the check it sent to him.

Stephen Lombardi · Answer

Right now you just have a bunch of what-ifs and that doesn't work for me or my clients. Ask for a written disbursement sheet showing the gross recovery, attorney fees, litigation expenses and how the checks for subrogation will be made out. That is the place to start.

Michael Heilmann · Answer

A case is not settled until you sign a release. If no release has been signed, the case is not settled. If you do not want to settle the case, you do not have to settle the case. It is not a matter of your attorney "overcharging you", it is a matter of communication. You need to communicate your concerns to your attorney or get another attorney. Good Luck.

Michael J. Leizerman · Answer

A lawyer cannot settle your case without your permission. If you instructed lawyer A to settle, a court will likely uphold the settlement. If, as you indicated, you did not give permission, then either there should be no settlement or lawyer A should be resposible to you. It seems like lawyer B took your story at face value, but then learned something that that led them to change their mind. Did they learn something that led them to believe that you did in fact give permission?  I hope that you are able to work this out to your satisfaction.

David Craig · Answer

I do not think that the issue is whether or not lawyer is charging too much.  I think the issue is whether or not the case settled.  If you did not authorize your attorney to settle then he had no right to settle your case.  Based on your e-mail it is possible that the case did not settle and the insurance company just sent a check.  Not likely but possible.  If the case settled then I am sure that the insurance company will have documentation of an offer and of the acceptance of that offer. Since you haven't signed anything (release or the check) you should hire a new attorney to contact the insurance company and let them know that the case isn't settled.  Then you can go forward with your claim. However if the insurance company says that the case is settled and they can prove that your attorney made or accepted an offer then your claim may be against the lawyer.

Matthew Kaplan · Answer

I would first look at your fee agreement with Lawyer A.  It should explain everything to you.  Then I would go in and see Lawyer A and have them explain where the money is going.  Typically attorneys charge between 25%-1/3% attorney fees.  Some lawyers do take this off the gross settlement while others make sure that any medical liens are paid first.  The lawyer may also have costs, which are in addition to any fees.  If you still feel like Lawyer A is in violation of your fee agreement, then I would contact the Oregon Bar.  They have a fee arbitration program.  Remember, this is about what is in your contract, not what you feel your attorney should charge you.  Your case cannot be settled until you have signed a Release, even if the insurance company sent a check in the mail.

Bradley Cornett · Answer

If you have a problem with your attorney's fee, you should contact the Alabama State Bar  The Alabama State Bar has a fee resolution service where they try to help attorneys and clients mediate a fee arrangement that is fair to both sides.

Thomas Bulman · Answer

Your story is all mixed up.  If you have worker's comp insurance, why would your health insurance even come into play?  Call Lawyer a and ask for any accounting of the way the settlement will be divided.  If they are paying some of your outstanding bills as a part of the settlement or costs they incurred in preparing your case, then this scenario looks typical.    The lawyer offered a fee reduction so pay the woman.  Take your $6k and pay down your credit cards.

Brian Bourke · Answer

Your case is not settled until you sign a Release prepared by the defendant's insurance company.  You still can get a second attorney and Attorney A will only receive the reasonable value of his services at the time the case actually settles.  If there is a disagreement with the amount of his fee at that time, you can arbitrate that dispute.  There is also the issue of the worker's compensation insurance being repaid for what they paid on your behalf.  You should find a new lawyer in your community as soon as possible to resolve all these issues.

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What should I do if an attorney is trying to overcharge me for an auto accident case?

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