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I never make more on a case than the client puts in their pocket. That’s a good way to get a negative Google review. I always reduce my fee to a little less than what the client receives, unless the client receives a pre-settlement loan.
I worked for a midsize firm of less than 50 for two decades until the owner retired. It was the firm's policy to never take fees higher than the client's net except for when the client went against the attorney's advice to accept the settlement offer and wanted to take a bad case to mediation or trial. I now work for a big billboard pi firm that's in multiple States. In the majority of the cases their fees greatly exceed the client's net. Also, I see that the clients grossly overtreat with insanely high medical bills. Of course the medical bills are negotiated down drastically, but they're still very high. They have no issue pocketing a 30k fee while our clients only get 5K, sometimes less. Honestly this whole thing leaves me feeling icky and like I'm part of a scam. But speaking to many other account managers, paralegals and such, the original firm I worked for was a unicorn and it's common for attorney's fees to exceed client's net.
My prior firm had the same rule to never take more than the client — and that is how I’m doing things now that I’m on my own (with the exception you mentioned). I don’t have any desire to contribute to the bad reputation of this profession and especially this practice area.
Unfortunately a lot of PI firms take their cut on a settlement and then leave a plaintiff in debt on medical bills.
It happens but it usually happens in cases where lawyer makes client over treat on a claim that isnt worth it or alternatively lawyer discusses case stinks but client actually needs the treatment…so yeah it happens but not a good look.
The real question is, do you take more than the insurance company? The answer is always no. I don't feel icky taking more than the client. I always feel icky letting the insurance company pay less than they should pay.
Depends how you count costs. But yeah, it happens.
Had a case where settlement was full $100k policy. Client had close to $400k in medical bills...I got the lien reduced down to $5k, yes $5,000 and now working to reduce retainer by half....Always help your clients. That's why we exist as an industry and profession. Disclaimer, I'm not an attorney.