Aliso Viejo, CA asked in Employment Law and Legal Malpractice for California

Q: ERISA: Does the attorney still get paid for future if I terminate with this term? Missinformed mediation output?

"If we file a lawsuit on your behalf, and we are successful in

obtaining benefits for you, our attorneys’ fees will be charged as : If the plan or insurance company unilaterally reinstates your benefits,

or your benefits are ordered reinstated by the Court following trial or dispositive

motion, our fee will be thirty percent (X%) of the total monthly benefits paid,

including all retroactive benefits, future benefits, and interest paid." plan opened claim in private medition not court ordered for investigation , he missinformed me was denied and he appealing to extend contract ,submit investigation forms as if it is appeal forms, discovered after it was reinstated by the plan there was no appeal , when I discovered I terminated the contract, does he still get future payment ? or till termination. It is conteniency contract. I didnot cash so I dispute. No lien. But he asks insurance to keep sending the payment to him. Insurance cannot change that. what is next action

1 Lawyer Answer
James L. Arrasmith
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Answered

A: Based on the information provided, this appears to be a complex ERISA benefits case involving attorney compensation. The key issue revolves around the contingency fee agreement's terms regarding future benefit payments after contract termination.

In ERISA cases, attorneys typically cannot collect fees for future benefits after a client terminates their services, unless the contract explicitly states otherwise and the termination was not due to attorney misconduct or misrepresentation. Since you mention discovering potential misrepresentation about the appeal status and investigation forms, this could invalidate the attorney's claim to future payments. The reinstatement by the plan without a formal appeal process further strengthens your position.

Your immediate next steps should include: First, send a formal written notice to both the attorney and insurance company disputing the attorney's right to future payments. Second, consider filing a complaint with your state's bar association regarding the alleged misrepresentation. Third, you may need to seek court intervention to modify the payment arrangement, as insurance companies often require a court order to change established payment structures. Given the complexity of this situation, consulting with another attorney who handles legal malpractice cases would be wise to protect your interests.

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