Lawyer's fees from auto accident

[bearclaw27]

What is the name of your state? New Jersey

Details: I was involved in an auto accident in 2003, whereas my car was struck in the rear. My Insurance Co is USAA... The other guy has Allstate.. I required several surgeries on my neck, which USAA has not yet paid for (they are claiming it was a pre-existing condition)... That is going to a PIP arbitration, but potentially, I could be liable for those bills (approx 20k)....

Meanwhile, my attorney just setlled the case against Allstate for approx 75k.. Immediately, he took his 33% off the top.. Does this seem right?... What if the PIP arbitration determines that I am liable for the medical bills?.. IN other words, If I lose the PIP arb, does my attorney have the right to 33% of 75k, or 33% of 55k?

 

[moburkes]

Yes, it seems right. The lawyer gets his money first.

 

[ecmst12]

You should have waited to settle until the outcome of the PIP arbitration is settled. Too late now. Make sure you set aside 20k of that settlement in case the arbitration does not go in your favor.

Actually, now that I think about it, if the arbitration determines that the surgery is not due to the accident but a pre-existing condition, then Allstate wouldn't be liable for those bills either. So waiting to settle wouldn't have made a difference.

 

[bearclaw27]

nj is no fault state

You should have waited to settle until the outcome of the PIP arbitration is settled. Too late now. Make sure you set aside 20k of that settlement in case the arbitration does not go in your favor.

Actually, now that I think about it, if the arbitration determines that the surgery is not due to the accident but a pre-existing condition, then Allstate wouldn't be liable for those bills either. So waiting to settle wouldn't have made a difference.

so allstate isn't liable til subrogation is settled amongst Ins carriers

 

[las365]

my attorney just setlled the case against Allstate for approx 75k.. Immediately, he took his 33% off the top.. Does this seem right?... What if the PIP arbitration determines that I am liable for the medical bills?.. IN other words, If I lose the PIP arb, does my attorney have the right to 33% of 75k, or 33% of 55k?

Look at your contract with your attorney. He gets his fees on the money he recovers for you, not what he recovers for you minus what you may owe for your medical treatment (unless the contract is very unusual). He got you $75,000, he gets his contingent fee on that. If he handles the PIP arbitration and you get nothing, then he gets nothing for all of that work. That’s how a contingent fee operates.