Articles Posted in Settlements

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It’s been quite a while since this Central New York Injury Law blogger has posted anything.  In fact, almost a year.  It was a busy year and blogging gave way to serving our clients’ pressing needs, always our number 1 priority.  But to quote Arnold Schwarzenegger (sort of), “we’re back!”  And with lots of news:

News Item Number 1:Michaels & Smolak” is no longer (sigh).  Jan Smolak, one of our four lawyers, left the firm to go join his lawyer-wife’s practice, Perotto Law, in Rochester, New York. We wish Jan luck!

News Item Number 2:  The other three “Michaels & Smolak” lawyers, Lee Michaels, Mike Bersani, and Dave Kalabanka. have remained right here in the same office in Auburn New York, but  are now operating under the name “Michaels Bersani Kalabanka, P.C.”.  Yeah, I know, that’s quite a mouthful, which is why we prefer to call ourselves “MBK Law”.  Our new website is MBK-LAW.com

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I have been representing personal injury victims for decades.  No two victims are alike.  They’re kind of like snowflakes: They are each unique.  This goes for how they deal with their injuries, too.  But generally you can think of how they handle their injuries as running along a spectrum, a continuum, which is the subject of my blog post today.

At one end of the spectrum is what I call the “tough guy”.  The use of the word “guy” here is deliberate, and not sexist.  This kind of personal injury victim is almost always a guy, not a woman, though I have seen exceptions to this rule.  The tough guy has to prove that he is too tough to let an injury bother him at all.  The extreme tough guy will not admit, even to his doctor, that he is in pain. He will refuse pain meds.  He will ask his doctor to send him back to work even when the doctor thinks this will be deleterious to the healing process.  The tough guy believes he is superman.

The problem with representing the tough guy is that when it comes time to settle his case, his medical records and his comportment have minimized the injury and so the case value is also minimized.  When he realizes that he has shot his case in the foot, the tough guy may finally admit to his lawyer, me, that he was in a lot of pain the whole while, and still is, but wanted to work and live through it without complaining.  He does not like to complain. But try explaining this to an insurance adjuster or a jury who is looking at reams of medical records wherein the victim had reported “no pain” or “minimal pain” or “nothing I can’t deal with”.  The tough guy is his own worst enemy in a personal injury case.  He sinks his own case with his bravado and chest pounding.

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We get this question a lot.  When we get it early on – while the client is still treating for her injuries, the answer is, “we don’t know”.  It depends on how well and how quickly you heal”.   But once the client is done healing and we can see what her “permanent” prognosis is, including any permanent pain, limitations or scars, we can take a stab at it.

Take a stab at it?  Kind of a brutal metaphor for a personal injury case valuation.  How about this:  We can establish a “ballpark” estimate of what the case is likely worth.  There is no “exact” value number because determining the “value” of a case is an art, not a science.

Here’s how we do it:

This law firm recently settled a wrongful death case for $5,500,000!  Although I am not at liberty to discuss the details of the settlement, nor any of the specifics regarding the injury (we signed a non-disclosure agreement with the insurance company), I can say that , once again, our lawyers did an outstanding job.

Such a large settlement for a motor vehicle accident case is unusual.  There are two reasons why:

First, a negligent driver who causes an accident is extremely unlikely to have enough insurance (or personal assets) to cover such a large settlement. The minimal liability insurance for motor vehicles in New York is only $25,000, and a good chunk of New York auto owners carry only this bare minimum in coverage.  Even well-off folks rarely carry more than $1,000,000 in coverage.  Greater coverage is usually only available when the at-fault vehicle is owned by, or the driver of the vehicle was in the scope of his employment for, a large corporation.  Personal injury lawyers refer to this as a “deep-pocket defendant”. In car accidents, “deep pocket” defendants are rare.

I’ve been settling my New York personal injury cases here in the Syracuse area for what some of my colleagues see as larger than normal numbers.  It seems I don’t have to try as many cases these days because the insurance carriers want to pay me to go away before we get to trial.  My “secret weapon”?  The “Rules of the Road” technique to case preparation.

Here’s a litmus test for picking a New York personal injury lawyer:  Ask your would-be lawyer whether he or she uses the “Rules of the Road” technique from the start of litigation through trial.  If he or she looks bewildered, run away.  The best personal injury attorneys in New York and all throughout these United States use it from day one in their case preparation.

The method was devised, or at least perfected, by the team of Rick Friedman and Patrick Malone.  You can get their book here. (I am not affiliated with them and do not get commissions from sales of the book).

We recently settled a Syracuse personal injury case in mediation for a confidential amount above seven figures. Although we are not at liberty to discuss the details of the settlement, nor any of the specifics regarding the injury (we signed a confidentiality agreement with the insurance company), nor the exact amount, I can say that Jan, once again, did an outstanding job.

I interviewed one of our lawyers about this result after his mediation.  Here’s what he said:  “My client was very satisfied with the result.  As usual, I can’t say much about the case because the insurance company insisted on a confidentiality agreement.  But I can say this:  The settlement was a win for our client.  She is very happy with the result.  And that’s my definition of winning.” 

Why did the insurance company insist that the settlement be “confidential”?  This happens a lot with large settlements. Insurance companies worry that, if word gets out that they have paid out a significant sum of money on one case, plaintiffs with similar injuries in other cases against them will hold out for more money and refuse to settle for less.

After decades of dealing with insurance adjusters in personal injury cases, this Syracuse personal injury attorney has come up with his personal list of do’s and don’ts in his dealings with them.  I published my first two rules yesterday here.  Below are the last three rules for dealing with a personal injury insurance adjuster:

Rule # 3:  Know the Medical Records Better than the Adjuster

When adjusters calls me, I often put them into voicemail so I can review the medical records and highlight the key facts before speaking to them.  I then call them back with the highlighted records in front of me.  Now I am ready to talk.  That’s because adjusters often have a “cherry-pick” method of discussing a case.  They take only selective quotes from doctors that supports their position that the injuries are not so bad.  But it won’t work with me.  I am ready to cherry-pick back at them.  The adjusters will quickly see I am no pushover and they are going to have to deal with me, and with ALL the medical records, not just their selective reading of them.  Believe me, it’s worth the effort.

After decades of dealing with insurance adjusters in personal injury cases, this Syracuse personal injury attorney has come up with his personal list of do’s and don’ts in his dealings with them.  Check my five hard-and-fast rules here:

Rule #1:  Do Not Allow Your Client to Give a Recorded Statement

This is rule number 1.  It’s hard for me to figure out why insurance adjusters keep asking for this.  I can only assume it’s because some personal injury lawyers are dumb naïve enough to allow them.  The adjusters try to sell the recorded interview by telling you that, once they have it, the case is more likely to settle.  They will say it will help them assess liability and your client’s credibility.  As long as your client is truthful, what have you got to lose?

In this Syracuse NY Injury lawyer’s last blog post, I talked about how, in most cases, a New York personal injury victim will end up with a much larger settlement with a lawyer than without one.  The problem with “going it alone” is that insurance companies will generally low ball” you an offer, hoping you will take it, sign a release, and go away (forever).

But my clients aren’t the only ones who get low balled.  Sometimes insurance company adjusters will “low ball” me an offer, hoping I will want to make a quick buck and move onto the next case.  But at my law firm, we don’t take low ball offers (except in the rare case where our clients won’t listen to our advice and take the low offer).  Although some New York personal injury lawyers regularly traffic in low ball settlements, I am proud to say ours does not.

In my opinion, those that do are typically large law  firms who advertise heavily and need to “churn” their cases to keep the money rolling in to pay their advertising bills.  At my law firm, where the bulk of our cases come by referral from other lawyers, we would rather handle fewer cases and MAXIMIZE the amount we can get for those few but dear clients.  We make our money by working up a few cases rather than knocking off quick settlements on a swarm of cases.

I hate to break it to you, but despite all the cute auto insurance ads on TV, insurance companies are not “nice guys”.  At least not if you were injured through the negligence of their insured.  You have to understand this very important fact right from the get-go:  In personal injury litigation, insurance companies are not your friend.  They are not a “good neighbor”.  They are not a cute little lizard.  They are not “by your side”.  You are not in “good hands” with them.  They are a business.  Their business is to pay you as little as possible on your claim so they can yield a bigger profit.

Case in point:  Last week I settled a case for a woman who fell off a horse at a local riding stable during a riding lesson in upstate New York (near Syracuse).  It was her first time on a horse. The saddle spun around while she tried to mount, throwing her to the ground, where she suffered a serious femur fracture.  Turns out she weighed more than the saddle setup could handle. The stable owners knew it, but failed to warn her.  Here was the original position the insurance company took (you need to click the image to read it):

After we got that letter, we sued  the stable owners.  We then took the deposition testimony of the owners and witnesses.  The insurance company lawyers then asked the trial judge to toss out our case because our client had “assumed the risk” of horse riding lessons, and had signed the waiver.  The trial judge dismissed our case.   We then appealed to the appellate court in Rochester, New York, got the trial judge reversed, and the case reinstated.  Last week, at a mediation, we settled the case for $130,000, which by the way was the amount of money we always thought the case was worth.

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