Law Firm Taking More Money than Allocated by Insurance Commission for Lump Sum for MVA Compensation

LAnnaPhylaxis on 21/12/2021 - 11:13
Last edited 21/12/2021 - 13:27 by 1 other user

Asking if anyone’s been on the same boat? I am about to receive compensation from the Insurance Commission (IC) from an MVA - a small lump sum amount for myself and an allocated amount for legal cost (58% of what I’m about to receive).

I received a letter from the law firm handling my case that I’m clearing $2000 less from the amount I am about to receive from the IC, to go to the law firm. That will give the law firm 86% relative to what I will get in total. Is this typical? Or can I object to them taking $2000 more than what’s allocated to them by the Insurance Commission? I rang IC for advice but this matter is out of their hands.

Financial

Comments

  • pharkurnell on 21/12/2021 - 11:24

    was it a no win no pay job?

    What did the fine print say when you took them on to handle your case?

  • JimmyF on 21/12/2021 - 11:24

    Is this typical?

    I assume you used a 'no win, no fees' legal firm, so yes this is typical for them to take the lions share of the payout.

    Have a read of the agreement you signed with them, it will outlay all the legal costs and other fees. I assume the $2k is some special fee listed in the T&Cs to handle the payment etc.

    • pharkurnell on 21/12/2021 - 11:29
      +4

      I assume the $2k is some special fee listed in the T&Cs to handle the payment etc.

      Probably 1 Fax.

  • weezlebub on 21/12/2021 - 11:37
    +1

    Yeah, i had a MVA court case about 20 years ago, even then the lawyer was involved in 3 phone calls, a referral to a shrink & physio & took 70% of the money awarded …
    Problem is, representing yourself against an insurance company and their lawyer is going to be tricky

  • bobbified on 21/12/2021 - 11:49

    The insurance company usually incorporates the claimants' legal fees into the total settlement amount.

    That is, the total settlement would be lower without the legal fees.

    • AnnaPhylaxis on 21/12/2021 - 11:57

      The Insurance Commission has specified the amount going towards the legal cost.

      • bobbified on 21/12/2021 - 12:01

        As the time comes towards claim settlement, the Commission would request from the lawyers a figure for their final costs so that it gets incorporated into the settlement. I've never actually heard of the lawyers taking more than what they've been allocated because they were given the opportunity to specify their amounts.

        • AnnaPhylaxis on 21/12/2021 - 12:07

          My case claim is vs the Insurance Commission - for physical injuries related to MVA.

          The Insurance Commission allocated an amount for myself and a separate amount for legal cost. The law firm is subtracting $2000 from the amount I am about to receive from IC.

          • bobbified on 21/12/2021 - 12:12

            @AnnaPhylaxis: Yes, I understand where you're at. Have you signed the actual settlement paperwork?

            What does the law firm say when you ask them why they're subtracting extra? They had the opportunity to tell the insurance commission what their costs are going to be.

            • AnnaPhylaxis on 21/12/2021 - 12:18

              @bobbified: I have yet to ask the law firm about this extra charge. I don’t like talking to them at all.

              But you are right, the law firm is getting more after the counter offer. I guess I should tell them we can go back to the initial offer so we both get less but I’ll be happier knowing they will get less.

        • AnnaPhylaxis on 21/12/2021 - 12:12

          Yes, the law firm countered the initial offer of the Insurance Commission. So they are receiving a better offer for legal cost and I am also receiving a couple grand more. But then the law firm informed me that they are taking $2000 off the amount I’m receiving from IC.

  • AnnaPhylaxis on 21/12/2021 - 11:55

    I will have to ask the law firm a copy of what I have signed, as I don’t remember signing anything. Probably something I have consented to over the phone. I have been slack about this as the incident happened almost a year ago now and I wasn’t expecting any more compensation apart from the physiotherapy I paid for out of pocket. Just shocked at how much this law firm tries to squeeze money out of a stone.

    • Ughhh on 21/12/2021 - 12:00

      Just shocked at how much this law firm tries to squeeze money out of a stone.

      I would say it'll probably apply to any law firm.

    • JimmyF on 21/12/2021 - 13:07
      +1

      Just shocked at how much this law firm tries to squeeze money out of a stone.

      Its standard practice for every law firm. Every call, every photo copy, every print out, every stamp used on a letter is 'charged' to a client.

      No win, no fee ones are no different, all part of the joy of not putting cash down!

      I have been slack about this as the incident happened almost a year ago now and I wasn’t expecting any more compensation

      Ok then, so be happy you got even more than what you expected!

      • AnnaPhylaxis on 21/12/2021 - 13:25

        Yes definitely! But can I just hate those lawyers for now?

        • JimmyF on 21/12/2021 - 17:07

          But can I just hate those lawyers for now?

          I'm ok with you hating on all lawyers in general….. So carry on!

        • Mr Krinkle on 22/12/2021 - 09:17
          +1

          For a small fee.

  • Muzeeb on 21/12/2021 - 12:50

    IANAL but after reading this I might become one.

    • AnnaPhylaxis on 21/12/2021 - 13:25
      +1

      This is the way.

    • bobbified on 21/12/2021 - 15:54
      +2

      IANAL - Yes, you really have to be prepared for that when you're dealing with lawyers.

      • Muzeeb on 21/12/2021 - 18:33
        +2

        Also - No lube allowed

        • Chandler on 22/12/2021 - 09:53
          +1

          No lube, no fee!

  • screensaver on 21/12/2021 - 14:19

    send them an email with the subject line To Whom It May Concern, asking for a copy of your agreement, and an itemised list of costs involved, and then state that as the injured party you dont think its fair that they are dipping into your payout as well.

  • Cheapskate Paul on 22/12/2021 - 14:02

    You have to understand that many lawyers have very expensive houses, cars and drug habits to pay for.

  • Moomad on 23/12/2021 - 10:51

    In QLD they are restricted to max 50% after dispersments have been paid. Check your local state legislation.

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