A couple of weeks ago, we settled a case for less than “full value” – for a lot less, in fact. By our internal calculations, we resolved it for no more than fifty cents on the dollar.
And we cut our fee by about half too.
This was all done quite intentionally.
Did some problem arise? Did our case fall apart?
No. We were in good shape and feeling good about the approaching trial.
The defense had expressed no interest in settling.
The case was not a sure winner for either side. Thinking like the old defense lawyer I used to be, I calculated our odds of winning at about 60%. A verdict likely would have been a good one, but there there was still a big chance of losing and getting nothing. I suspect the insurance company and its lawyer had assessed the situation similarly. Whether to try or settle such matters is a judgment call for the defense – as I recall so well. Accordingly, I was not surprised when no offer was forthcoming.
What happened?
Our client was in a tough spot. His position was a fragile one, both financially and emotionally. While he stood to net a lot more money if we prevailed, the possibility of getting nothing was overwhelming. It could have sent him over the edge.
This man needed a fresh start – and a modest bolus of money was the way to do that.
The client pleaded with us to resolve the case such that he would net such resources.
I contacted the defense lawyer, a guy I know and respect. We used to work together. I explained the situation pretty much as I have spelled it out above. He went back to his carrier. After a couple of days of negotiations, we got it done.
We adjusted our fee so the client would net half of the total settlement. As a general rule, at our firm we think there’s something wrong with the lawyer getting more than the client.
Again, thinking like the old defense lawyer I once was, the insurance company got a good deal – a very good one, actually – and that is totally okay with me. Although I might get scorn from my fellow plaintiffs’ lawyers, I would even say that it did the right thing. The other side could afford to gamble on this case, but they chose not to do so.
Sure, I would much rather be making a post bragging about some ginormous verdict or settlement. That’s more fun, definitely.
On the other hand, our clients are real people and their lives can be very difficult. Our duty is to help them. Sometimes not taking a chance on a big award (and big fee) is what needs to be done.
Lots of lawyers talk a lot about full value or fair value. That’s all well and good, but the people we represent are often genuinely in need – and getting nothing would grossly compound their already difficult situation.
Even in the strongest cases, there is a not insignificant chance of losing at trial. That’s reality in this business.
The client’s interests come first. Always. Period. Full stop.
Interested in referring a client to Rawls Law Group?
Link to original LinkedIn post: https://www.linkedin.com/feed/update/urn:li:activity:7513527364841136128/