gkisystems
Member
What is the name of your state (only U.S. law)? Wisconsin.
BACKGROUND:
I hired an attorney to assist me in obtaining the best possible award/settlement from my insurance company resulting from an auto accident where the other driver was at fault, but uninsured. The applicable coverage that applies is uninsured motorist coverage (but only for bodily injury and pain & suffering - not property damage).
The attorney suggested that given the injuries sustained and medical bills incurred, a reasonable settlement amount to expect was $70k to be received within about 6-9 months after the auto collision, but he could not guarantee any amount. It is now almost 2 years later and no money has been paid out. The attorney reduced his estimate recently and said he thinks he can only get $25k and stated that if he could not get the insurance company to settle for that amount, it would be worth going to trial. The insurance company has offered $16k and will not go any higher. After medical bills and attorney fees, this leaves approximately nothing left over. My attorney has recommended going to trial and I concur with his recommendation.
PROBLEM
The problem is that the attorney is requesting a $10,000 up-front retainer from me to cover court costs, but the fee agreement I have with the attorney states it is a contingency basis only where the attorney gets 33.33% of the proceeds. Furthermore, I recently learned that the attorney had not even requested a police report of the collision and is not aware of the status of the other driver's citations. While I'm not sure having this information is critical to my case, at the very least I would think a competent attorney should at least have something as simple as this on file.
In response, I informed the attorney that I did not want to accept the settlement offer and that he should proceed to go to trial by filing a lawsuit. I also told him that the fee agreement nowhere states a requirement for me to pay any money upfront, let alone $10k, and therefore his request for a retainer is denied. The attorney responded by saying my only option is to give him the $10k or accept the settlement.
QUESTIONS FOR THIS FORUM:
1. Neither of the options provided by the attorney are acceptable to me. What would you do if you were me in this situation?
2. Should I terminate representation?
3. If I terminate representation, what amounts am I actually supposed to pay? Would it be just 1/3 of whatever settlement arrangement I end up getting?
4. The agreement says "No hard costs will be extended beyond the available funds in the Client's trust account." What does this exactly mean? I have no available funds in a trust account. So, does this mean that I am not responsible for any costs whatsoever?
APPLICABLE PORTIONS OF THE FEE AGREEMENT ARE PASTED BELOW:
"Attorneys will provide competent representation."
"Once employed, Attorneys will act with reasonable diligence and promptness, as well as use their best efforts on behalf of Client."
"Attorneys will abide by Client's decision concerning the objectives of representation, including whether or not to accept an offer of settlement, and will endeavor to explain any matter to the extent reasonably necessary to permit the client to make informed decisions regarding representation."
"The attorneys' fee for legal representation in any case arising from these occurrences will be based on a contingency fee of 33.33% of the awarded judgment. The XYZ Law Firm is hereby given a lien for said amount pursuant to �757.36, Stats."
"If representation is terminated by Client prior to judgment at trial or arbitration or before a settlement is reached the following hourly fees will be applied for all work. $200/hr for in-office work, $300/hr for out-of-office work, and $100/hr for travel"
"In representing you, all of the costs and expenses of the claim or lawsuit will be paid by Client. This would include the cost of investigation, filing fees, postage, the costs of reproductions out of Attorneys' office, long distance telephone calls, collect calls, travel expenses, obtaining records (tax returns, pay stubs, deeds, abstracts, bank account statements, checks, etc.), payments to experts who testify in your case, deposition transcripts, pro hac vice fees, and other costs and expenses incurred in your case. No hard costs will be extended beyond the available funds in the Client's trust account. All costs must be paid within 15 days of billing or as otherwise agreed in writing. Any costs not paid within 15 days will be subject to an interest rate of 1.5 percent, compounded monthly."
"There is no prepaid legal fee for this agreement. Attorneys will keep track of their time in 1/4 hour time intervals. Client agrees to pay Attorneys within 15 days of billing for any fees or costs incurred, or according to other written arrangements. Any fees or costs not paid within 15 days will be subject to an interest rate of 1.5 percent, compounded monthly. Client should review each billing statement promptly and address any objection or error in a timely manner. The client will not be billed for time spent to explain or correct a billing statement. If an appropriately detailed written estimate is submitted to Client as to future costs for Attorneys' representation or a portion of the contemplated services (i.e., relative to specific steps recommended by the counsel in the estimate) and, without objection from Client, Attorneys then performs the contemplated services, all such services are preemptively reasonable and necessary, as well as to be deemed pursuant to Client's direction. In an appropriate case, Client may pursue contribution to his or her fees and costs from the other party. Client understands and agrees that if Client fails to pay any fee or any cost within the time permitted by this agreement, or to make additional deposits into trust as deemed necessary, Attorneys may withdraw at his discretion from further representation of client. Attorneys' right to withdraw shall not be waived by working with Client or waiting for fees or costs to be paid. Client further understands and agrees that if Attorneys, in his discretion, believes that it is no longer legally tenable or ethical to represent Client, Attorneys may withdraw from further representation or as otherwise provided in this Agreement."
"The attorney client relationship is regulated by the Illinois Rules of Professional Conduct (Article VIII of the Illinois Supreme Court Rules) or Wisconsin Rules of Professional Conduct for Attorneys, (Chapter 20 of the Wisconsin Supreme Court Rules) and any dispute shall be reviewed under the terms of such Rules. Any dispute regarding fees billed shall be resolved in fee arbitration."
BACKGROUND:
I hired an attorney to assist me in obtaining the best possible award/settlement from my insurance company resulting from an auto accident where the other driver was at fault, but uninsured. The applicable coverage that applies is uninsured motorist coverage (but only for bodily injury and pain & suffering - not property damage).
The attorney suggested that given the injuries sustained and medical bills incurred, a reasonable settlement amount to expect was $70k to be received within about 6-9 months after the auto collision, but he could not guarantee any amount. It is now almost 2 years later and no money has been paid out. The attorney reduced his estimate recently and said he thinks he can only get $25k and stated that if he could not get the insurance company to settle for that amount, it would be worth going to trial. The insurance company has offered $16k and will not go any higher. After medical bills and attorney fees, this leaves approximately nothing left over. My attorney has recommended going to trial and I concur with his recommendation.
PROBLEM
The problem is that the attorney is requesting a $10,000 up-front retainer from me to cover court costs, but the fee agreement I have with the attorney states it is a contingency basis only where the attorney gets 33.33% of the proceeds. Furthermore, I recently learned that the attorney had not even requested a police report of the collision and is not aware of the status of the other driver's citations. While I'm not sure having this information is critical to my case, at the very least I would think a competent attorney should at least have something as simple as this on file.
In response, I informed the attorney that I did not want to accept the settlement offer and that he should proceed to go to trial by filing a lawsuit. I also told him that the fee agreement nowhere states a requirement for me to pay any money upfront, let alone $10k, and therefore his request for a retainer is denied. The attorney responded by saying my only option is to give him the $10k or accept the settlement.
QUESTIONS FOR THIS FORUM:
1. Neither of the options provided by the attorney are acceptable to me. What would you do if you were me in this situation?
2. Should I terminate representation?
3. If I terminate representation, what amounts am I actually supposed to pay? Would it be just 1/3 of whatever settlement arrangement I end up getting?
4. The agreement says "No hard costs will be extended beyond the available funds in the Client's trust account." What does this exactly mean? I have no available funds in a trust account. So, does this mean that I am not responsible for any costs whatsoever?
APPLICABLE PORTIONS OF THE FEE AGREEMENT ARE PASTED BELOW:
"Attorneys will provide competent representation."
"Once employed, Attorneys will act with reasonable diligence and promptness, as well as use their best efforts on behalf of Client."
"Attorneys will abide by Client's decision concerning the objectives of representation, including whether or not to accept an offer of settlement, and will endeavor to explain any matter to the extent reasonably necessary to permit the client to make informed decisions regarding representation."
"The attorneys' fee for legal representation in any case arising from these occurrences will be based on a contingency fee of 33.33% of the awarded judgment. The XYZ Law Firm is hereby given a lien for said amount pursuant to �757.36, Stats."
"If representation is terminated by Client prior to judgment at trial or arbitration or before a settlement is reached the following hourly fees will be applied for all work. $200/hr for in-office work, $300/hr for out-of-office work, and $100/hr for travel"
"In representing you, all of the costs and expenses of the claim or lawsuit will be paid by Client. This would include the cost of investigation, filing fees, postage, the costs of reproductions out of Attorneys' office, long distance telephone calls, collect calls, travel expenses, obtaining records (tax returns, pay stubs, deeds, abstracts, bank account statements, checks, etc.), payments to experts who testify in your case, deposition transcripts, pro hac vice fees, and other costs and expenses incurred in your case. No hard costs will be extended beyond the available funds in the Client's trust account. All costs must be paid within 15 days of billing or as otherwise agreed in writing. Any costs not paid within 15 days will be subject to an interest rate of 1.5 percent, compounded monthly."
"There is no prepaid legal fee for this agreement. Attorneys will keep track of their time in 1/4 hour time intervals. Client agrees to pay Attorneys within 15 days of billing for any fees or costs incurred, or according to other written arrangements. Any fees or costs not paid within 15 days will be subject to an interest rate of 1.5 percent, compounded monthly. Client should review each billing statement promptly and address any objection or error in a timely manner. The client will not be billed for time spent to explain or correct a billing statement. If an appropriately detailed written estimate is submitted to Client as to future costs for Attorneys' representation or a portion of the contemplated services (i.e., relative to specific steps recommended by the counsel in the estimate) and, without objection from Client, Attorneys then performs the contemplated services, all such services are preemptively reasonable and necessary, as well as to be deemed pursuant to Client's direction. In an appropriate case, Client may pursue contribution to his or her fees and costs from the other party. Client understands and agrees that if Client fails to pay any fee or any cost within the time permitted by this agreement, or to make additional deposits into trust as deemed necessary, Attorneys may withdraw at his discretion from further representation of client. Attorneys' right to withdraw shall not be waived by working with Client or waiting for fees or costs to be paid. Client further understands and agrees that if Attorneys, in his discretion, believes that it is no longer legally tenable or ethical to represent Client, Attorneys may withdraw from further representation or as otherwise provided in this Agreement."
"The attorney client relationship is regulated by the Illinois Rules of Professional Conduct (Article VIII of the Illinois Supreme Court Rules) or Wisconsin Rules of Professional Conduct for Attorneys, (Chapter 20 of the Wisconsin Supreme Court Rules) and any dispute shall be reviewed under the terms of such Rules. Any dispute regarding fees billed shall be resolved in fee arbitration."
