How We Limit Attorney Liability
By neglecting to recommend that your client discuss their pending settlement, (and all of the settlement options available to meet their needs) with a professional, objective plaintiff-loyal settlement planner, you, as their attorney, may be exposing yourself to legal malpractice liability.
In Macomber v. Travelers Property & Casualty Corp. and Lyons v. Medical Malpractice Insurance Assoc. plaintiff attorneys have been sued for the harm sustained by their clients at the hands of the defense-provided structured settlement brokers.
For Reference See: Plaintiff Attorneys Exposed to Claims by Clients (PDF) and “How much does that Structure Really Cost? (PDF)”
This information in itself is usually enough to cause most “look ahead, think ahead” attorneys to contact us immediately.
Not surprisingly, the courts in the above-referenced cases have found plaintiff attorneys liable because the defense-provided structured settlement brokers owed no duty to the plaintiff or his/her attorney.
A defense-provided or “approved” structured settlement broker really only has one function:
To reduce the defense insurance company’s cost of settlement at your client’s expense.
That function is obviously at odds with your function, and can put you in the line of malpractice fire.
What’s in it for the Casualty Companies and Self-Insured Corporations? MONEY! Money in the form of direct rebates and kickbacks. Look here to read a letter that reveals the names of the Defense-Loyal Structured Settlement Brokerage Firms that engage in rebating, and the shocking admission that those firms make up 70% of the total industry!
Why is rebating a bad thing?
After all, it is paid out of the commissions and fees earned on structured settlement annuities, and doesn’t really come out of the injury victims pocket, does it?
Well the problem with rebating is that, human nature being what it is, it sets up a situation where the defense broker that is paying the rebate or kick-back, is tempted to look for ways to generate the payment without it coming out of his commission.
And what ways are there to do that? Look again at this.
STILL THINK THE MILK OF HUMAN KINDNESS FLOWS THROUGH THE VEINS OF CASUALTY COMPANIES AND SELF-INSURED? FOR REFERENCE SEE: AIG SMOKING GUN MEMO.
“Cashing Out” Does Not Release Your Liability
At this point, you might be thinking that the problems associated with a defense provided structured settlement broker can be eliminated by simply “cashing out” and not offering a structured settlement to your client.
That is true; however, the dangers of not offering a structured settlement can be every bit as dangerous as relying on the defense. In fact, Plaintiff attorneys have also been sued for failing to offer their clients a structured settlement.
Most notably in the case of Grillo v. Henry an attorney and a guardian ad litem allegedly ignored a structured settlement offer and were sued by their former client. The attorney and ad litem settled the case for $1.6 million and $2.5 million, respectively.
Structured Settlements Are Not Right For Everyone
Now, we don’t advocate that a structured settlement is right for every claimant in every case. Far from it!
But comprehensive settlement planning is right for every claimant in every case. A competent, objective Settlement Planner that has multiple strategies and products designed to meet the needs of most injury victims, should be honest and professional enough to point out when this “one-size-fits-all” structured settlement solution is NOT the right one for your client.
“Jack is the best in the business. He will truly give the advice that best benefits your client, often to his own economic detriment. He truly cares.” - Jeffrey Foote Esq., Foote & Webster, Portland, Oregon, and President, 1990-1991, Oregon Trial Lawyers Association (OTLA)
The best way to help insulate you from liability and protect your clients’ interests during the financial aspects of your cases is to retain your own plaintiff-loyal Settlement Planner.
That Settlement Planner can explain the pros and cons of all investment and savings options, including whether or not to structure the settlement to meet certain fixed and determinable needs.
This way, your client makes an informed, educated decision with the help of an expert qualified to give the advice. AND YOU AVOID GIVING YOUR CLIENTS FINANCIAL ADVICE, FOR WHICH YOU PROBABLY DON’T HAVE PROFESSIONAL LIABILITY INSURANCE.
Let’s discuss how we can protect your clients and help limit your liability. Let SPI become your firewall for the financial aspects of your cases.
