Q: Do lawyers take fees from auto insurance recovery for same injury?
I settled my personal injury case for $100,000, from which my lawyer took a 40% fee, plus $1,675.25 in additional fees, placing the rest in trust. Now they are going after my auto insurance for $25,000 related to the same injury without explaining if they will also take a fee or percentage from this amount. I've been shuffled between five different attorneys and have never met one face-to-face. Is it standard for the lawyer to take a fee from the auto insurance recovery as well, and should this have been clarified from the beginning?
A: Judging from your facts and it’s still a little bit unclear, but the most likely situation is that the $100,000 was paid out from the bodily injury liability carrier of the other driver. And now there’s $25,000 under your own policy and what is called uninsured motorist (UM) policy And they’re pursuing that. If that is the case, then yes it is ethical for an attorney to take 40% of a gross recovery on the file, which would mean that they’re going to take a 40% cut of the uninsured motorist proceeds.
Tim Akpinar agrees with this answer
A: It could depend on the terms of your retainer. My colleague's assessment is the most plausible possibility - that it involved UM coverage, which is generally acceptable. Good luck
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