October 2nd, 2008

Personal Injury Lawyers Rattled by Insurance Woes

There is an article out today at LawyersUSA (Insurance industry woes rattle personal injury lawyers) in which I am quoted a bit. I had written previously about how the problems on Wall Street might affect the personal injury bar. (See, Wall Street Meltdown and Personal Injury Law.)

But in addition to the problems of insurance companies going belly-up, causing delays or worse in cases getting resolved (and forcing lawyers to carry the expenses even longer than they otherwise would), another problem also exists. The tightening credit market will likely effect the ability of personal injury lawyers to fund cases. If lawyers can’t get a line of credit from the bank — not because the attorney isn’t creditworthy but due to panic and fear in general — it means that they have to get funding from lawyer funding companies that charge outrageous interest rates.

But where to those lawyer funding companies get the money from, even if you agree to pay the high interest rates?

Hard times are ahead for the personal injury bar if the lawyers don’t have their financing already lined up for their cases. And even if they do, people will now have to worry if that financing contracts or disappears altogether.

 

August 18th, 2008

The Million Dollar Listserv (Updated)

The listserv may be the single greatest tool the solo or small practice lawyer has. And this post explains why.

This is also a story about some of the best lawyering I ever did, and its connection to a listserv. While I suspect that the lesson may be old hat to many readers — since you are obviously already connected or you wouldn’t have found this blog — I’m going to spill forth anyway on the odd chance you do not already belong to a listserv, or that this gets passed by a friend to at least one less-than-connected attorney.

The story involves the case I just blogged about in June that went to verdict. But if you think I’m going to brag about a brilliant legal argument or devastating cross-examination tip that I picked up and used, don’t worry. It isn’t about that.

Rather, it’s about how a good listserv can spill forth a spectacular amount of small nuggets of information, any one of which can help turn a case. In the one I just tried, I had been alerted to an imminent change in the law. That change turned a 100K case into a seven figure case.

By way of background to appreciate this, you have to know that the car accident that injured my client occurred in July 2005, and that the car that did the damage was a leased vehicle. The Graves Amendment was then passed by Congress just three weeks after the accident. And that amendment destroyed the vicarious liability that existed in New York that held leasing companies responsible when their drivers caused accidents.

Within days of being retained by my client, and while she was still institutionalized in rehab, I learned through a listserv that a House-Senate conference had agreed to this amendment that would eviscerate her rights to recover for her injuries. I learned of the legislation just one day before I was to go on vacation, and I had no idea when President Bush would sign it. So I typed up a Complaint at home and rushed it into the courthouse the next day for filing, beating the presidential signature.

I’d like to tell you the best lawyering I ever did had something to do with one of my trials with fancy openings or summations, a great bit of research finding an obscure case or a brilliant legal argument. Or perhaps a story of an argument from the Second Circuit or New York’s First or Second Appellate Departments.

But instead, the blunt reality is that the simple participation in a listserv alerted me to the passage of damaging legislation. Being connected kept me up to date. Being connected got my client to the courthouse door in time. There was another person injured in this accident, by the way, and his lawyer didn’t file in time. I never asked, but I think it is safe to assume he was not connected to people who were discussing the latest of legal events.

So the utterly simple and routine act of typing up a standard personal injury complaint and getting it filed right away turned out to be one of the best things I’ve ever done for a client. Without it she would have been stuck with the insurance policy limits of the two cars involved, 25K and 100K. Instead, she was able to proceed against the owner/lessor for injuries that clearly exceeded those minimal policies, for an ultimate recovery that exceeds those numbers by seven figures.

And so if you are not connected to such a group in your geographic area, or at least your practice area, then find one. Or create one. This is all the more important for the legions of solo and small firm practitioners, giving you not only the opportunity to swap the latest in news, but the latest in court rules, judicial temperaments and local gossip that just might one day mean all the world to your client.

The constitutionality of the amendment, by the way, is currently on appeal.

Update: Just one day after posting this, the Graves Amedment Was Upheld by the 11th Circuit Court of Appeals

 

March 7th, 2008

What Is A Solo Practitioner?

Over at Susan Cartier Liebel’s Build a Solo Practice she puts out a couple of statistics I hadn’t seen before:

Solos comprise more than 50% of all private practice attorneys in the country. In some states, like New York, they are as high as 81%.

With such a huge predominance of BigLaw in the news, I never realized that I was actually in the majority, not the minority.

But the stats lead to different questions, starting with this: What, exactly, is the definition of a solo?

Does this mean one lawyer, and one lawyer only (along with support staff)?

Or does solo mean that there may be a few associates, but 100% of the equity (and responsibility and liability) of the firm sits with one person?

What definitions are used to create these stats, and what definition should be used?

I’m not going to pretend I know what the “right” answer is, though I think that the element of 100% of the risk is more important than 100% of the work. This is especially true given that many solos may outsource some work when times get busy, creating a vast gray area of per diem, “of counsel,” and part-time lawyers that make precise definitions difficult. I just don’t know how any of this is factored in when statistics are compiled.

And I am more than a bit curious as to what others think, and with that, here is a shout out to:

I hope to hear back on other blogs and in the comments here.

Update – Responses: