THE PRICE OF DOING BUSINESS…

One aspect of our representation is to advance the “cost” of litigation.  This means as expenses come up in the case, we pay it.  Understanding cost is important to understanding the commitment that is being made by the attorney on behalf of your case.  Some attorneys refer to this advancing of cost as a “loan” on your case.  This is not really accurate for our firm as we do not charge any interest on the monies we advance, but it does demonstrate the process that goes on.  The attorney pays the cost as it comes due, and then deducts the cost from the clients two thirds share at the end of the case.

Here are a couple examples about cost:

1)  In a modern workers compensation case we have to pay $100 simply to file your case.  In the future this will be done electronically and it will become even more cumbersome and tricky.  We expect additional fees will likely be tacked on to that filing system.  You can serve a work comp lawsuit on the insurance company and employer by mail.  But each active service generally ranges between $5 and $10 per mailing.  Again this is advanced by the attorneys.

2) In a personal injury case the state District Court requires $185 for the paperwork to be filed.  These types of cases generally require personal service which can add another $65 – $100 per person served to the process of getting the case on file and served.

Things like postage, copier, acquiring medical bills, and conferences with the doctors are other types of expense which we advance.  Believe it or not, some doctors will charge $700 just for a 15 min. conference.  They do it because they can get away with it.

Most clients don’t think about the actual cost involved in the handling of a file, but costs do mount up, and can be a substantial investment first by the attorney, and ultimately by the client at the time of settlement.

 

DON’T WAIT…GATHER EVIDENCE

Today I am thinking about the problems our clients have with the failure to gather evidence early in the case.  You can’t imagine the number of times a person who did absolutely nothing wrong in the accident says “no, I didn’t take pictures or get the names of the witnesses who stopped to help me.  Don’t the police do that?”    The answer is no.   If you don’t help yourself nobody else will.

Collecting and preserving evidence is critical to an injured person’s ability to receive justice through our tort system.  We live in a time when injured victims must prove all aspects of their case, even the obvious aspects.  If you delay gathering evidence and simply depends upon the insurance company, or law enforcement, to gather evidence serious harm can be done to your case.  Whether you have a personal injury, or work comp situation important items of evidence would include:

1.         Taking photographs of the accident scene.

2.         Taking photographs of both vehicles.

3.         Photographing your injuries, if visible.

4.         Taking statements from the other party.

5.         Taking statements from witnesses.

6.         Larning about the law that will control your case.

7.         Documenting  your wage loss.

8.         Starting the process of collecting your medical bills.

9.         Getting reasonable and necessary medical care for your injuries.

Although this list looks simple, in practice, it is hard to do a complete job when gathering evidence.  Taking statements and photographing vehicles require that you know what you are doing.  So give us a call if you have questions about what you should be doing.  The call is free.

 

ELECTRONIC COURTHOUSE

Soon Iowa will see the arrival of electronic filing for work comp and personal injury cases.  In a personal injury case electronic filing is already required in Plymouth and Story County as of 2011.  The Work Comp Commissioner’s office is likely to move to electronic filing in the near future.  This promises to bring a whole new set of headaches.

First, you have to know the forms.  Second, you have to know where to get the forms and how to get them filled out.  Third, you have to know which hoops to jump through when using the Internet to get your case properly filed.  This will be a challenge for all law firms and will be doubly challenging for an individual.

The move to electronic filing will likely increase the need to use an attorney to make sure that things are done properly, and are done in a timely manner.  The day of being able to wait till the last second to file a lawsuit is practically gone for an individual.  Some law firms will still be able to do this but only if they are “online” and ready to go.  The best advice here is that if time is short… hire a lawyer!

 And remember, the lawyer isn’t obligated to help you just because you waited till the last second.  So plan ahead, and be smart.

 

MANAGING MEDICARE’S MONEY

Understanding the role of Medicare, and other state/federal benefit programs is practically a full-time job. Here in our office the heads are spinning, and the eyes are watering by the time we think we have a plan in mind that helps protect the interest of the government, and the clients. What you have to understand is that work comp insurance companies are ruthless in trying to get off the hook for the obligation to take care of future medical expense. Those insurance companies will do anything to get the injured worker to take on the administration, payment, and reporting requirements to the federal government on cases that have been settled.

Why the insurance companies are this way is a mystery to most workers. But if you think about it, it’s not hard to understand. It boils down to more than simply paying for future medical care. Someone has to look at the bill as it comes in. Someone has to decide to pay the bill. Someone has to then write a check. Someone has to mail the check. Someone has to make a record of what has happened. Someone then has to keep track of those records, receipts, or other information pertaining to the payment. Finally someone has to report the details of what happened to the money to the satisfaction of the government. All of this costs money. Lots of money.

Recently we looked in a case where the insurance company stated the minimum cost for maintaining a future medical account where only prescription medication was involved would be $2500 per year. Doesn’t sound like very much when you think about it that way, does it? However, if the injured worker is 26 years of age this expenditure will cost more than $100,000 just to keep track of the numbers and paperwork during the estimated lifetime. Trust me, an insurance company is highly unlikely to pay you $100,000 even if you’re willing to take on that work and accompanying risk. They think most lawyers and injured workers are blinded by money and won’t consider the cost of administering the account.

An injured worker should be very careful before taking on this challenging task. It’s basically the same as trying to prove up expense account items for an over the road truck driver at tax time. There’s a bunch of Mickey Mouse record keeping, organizing, and reporting that will drive most people crazy.