What benefit does a lawyer get for settling a workers comp case faster?

Question

My lawyer keeps pushing me to take a settlement if it is offered saying that if I deny their counter offer then I may get nothing. This is from a back injury that clearly shows they are liable and I have records from many of my doctors saying that I can't lift anymore and diagnosed me with a certain lower back injury. Does my lawyer negotiate with the insurance company for me to settle for less and fast so he gets paid thousands that I never see? So that he benefits more than I actually do. He also said if I don't take the settlement and push the case to get medical coverage and weekly payments, that is more of a chance to lose the case and get nothing. Does this sound strange or is this how comp cases work? Please respond with actual experiences or real legal knowledge, thanks.

Answer 1

Financially, your attorney does not get paid until your claim is settled. Applicant attorneys basically work for free until your claim is settled which generally is why attorney's would push for settlement.

You also have an incentive to settle your claim now than later. I'm assuming that you're now Permanent & Stationary which means you are no longer collecting Temporary Disability, and are now collecting Permanent Disability. Permanent Disability (PD) benefits are capped based on how much permanent disability you have. The Claims Administrator is required to advance this benefit on a bi-weekly basis until a settlement is reached. If you are looking at a Compromise & Release, then you're settlement will be less and less as you collect more and more of your PD benefits.

Don't worry about "liability" because at this point, the claim is now compensable and is no longer a question.

No, applicant attorneys do not negotiate with insurance companies for less settlement just for the sake of a fast settlement. However, you have to watch out for what your attorney's motives are. The value of your claim (with a C&R) is the sum of your PD benefits, plus the value of the Future Medical Care the doctor says your entitled to. Add these two up in your head and if the settlement is less than that number, then take your attorney to task and ask them why it's not the number you're coming up with.

With regards to "taking the settlment now or lose the case and get nothing", that doesn't sound reasonable. Your claim is compensable at this point. You have medical evidence to back your claims for PD benefits. The Claim Administrator should have their "conservative" value of this claim. Your attorney should have their value of the claim. If the Claims Administrator has just as good as case as you do, then the worst thing that will happen is that the Judge will force both sides to meet in the middle.

Answer 2

As a lawyer, I am personally ashamed of this, but it is a reality.

I would bet money that your lawyer works on a contingency basis. He would get a percentage of what he wins (either in court or by settlement). The practice of law is a volume business. By way of example, a lawyer would much rather do a quick 1 hr settlement for $1,000 than win $2,000 after a month long fight. The time spent getting that second $1,000 is not worth it to him, because in that longer period of time, he can turn around more quick $1,000 settlements. If he is taking home 30%, he makes much more closing cases quickly and more frequently.

What does this mean for you, the client? Well, you get scr*w*d because your lawyer wants to move on to something worth his time. Essentially, you are sold out to his laziness. That's probably why he is pushing you to take the deal. He wants to cash out. Sure, he'll probably talk to you about litigation risk (losing in court) and the strength of your case justifying the settlement, but most of the time it is a front.

Answer 3

Well, the advice you are getting might very well be accurate.

Settlements are often offered, even if the other side thinks they might win, just to avoid the costs of going to trial.

So, it's quite possible -- based on the facts of your case -- that refusing the settlement will not only drag things out longer, but may cause you to lose the case entirely.

I'm not saying that is the situation -- but it could be. Another reasonably possibility is the answer above me -- the lawyer could just be trying to get this off his plate quickly.

Answer 4

Every trial is a crapshoot, every settlement a certainty.

Basically, settlement increases his probability of getting paid, and the payday is sooner rather than later.

Answer 5

It insures that he will get some money. He may really be telling you that you should cut your losses, and take the money and run. He should have already told you how much of a percentage he is taking.