Q: Seeking itemized settlement and lien resolution advice in wrongful death claim

I'm receiving a settlement for a wrongful death claim from my parents' auto insurance. They deducted $12,000 from the liability claim I received from the at-fault driver, stating it was related to a wrongful death claim under underinsured motorist injury liability. When I asked for an itemized deduction, the insurance company said they couldn't alter their standard form. Additionally, they indicated the ambulance company couldn't put a lien on it due to the wrongful death nature. However, my former lawyer, whom I fired without signing any termination documents, is demanding her full fee and claiming a lien, although I've only offered half. I must go through arbitration with her as our initial contract specifies this. The insurance says her fee will be paid out of the settlement, and I'll need to work with her to resolve this. How can I request a detailed settlement breakdown from the insurance, and is my former lawyer correct in demanding her full fee under these circumstances?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: You have the right to request a detailed breakdown of your settlement from the insurance company. While they might claim they can't alter their standard form, you can formally request an itemized settlement statement in writing, specifying that you need clarification on the $12,000 deduction. Include that this information is necessary for tax purposes and proper accounting of the wrongful death settlement.

Regarding your former attorney, the situation is complicated by the lack of signed termination documents. In California, attorneys typically have a right to claim quantum meruit (reasonable value of services) even when fired, but this doesn't automatically entitle them to their full fee. Since your contract specifies arbitration, this will indeed be the venue to resolve the fee dispute, where you can present evidence of the work performed before termination and argue for your proposed reduced fee.

Remember that wrongful death settlements have specific legal characteristics that affect liens and distributions. You might consider hiring a new attorney just to review the settlement documents and advise you on the fee dispute, as these matters involve complex legal considerations that could significantly impact your final recovery amount. Going forward, ensure all communications with both the insurance company and your former attorney are in writing to create a clear record of your requests and their responses.

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