Within the last 6 months or so, several people who have called (non-clients) to say they hired an attorney and they want my help because the attorney isn’t doing anything. Attorneys are retained for claim appeals, or possible settlements, but I found out today an Unum “appeal and settlement” is still unsettled more than 6 months out. Yes, I’ve heard several complaints about this, but unfortunately there is nothing I do to help at this point.
A few callers have told me that attorneys are now charging $500-$900 per hour, with fees of 40% back/40% forward to maximum duration of claim. In my opinion, these types of fee are highway robbery, but vulnerable insureds seem to think something gained is better than nothing and the attorney’s skill matches the highest fees. This isn’t true at all.
If an attorney quoted me $900/hr. I would ask to see his successful litigation files over the last two years, particularly ERISA. IDI claim files should demonstrate successful awards as punitive damages, bad faith, or censure. I wouldn’t just pay an attorney that high of a per hour fee because he asks for it. Ask for proof of successful litigation cases.
I also would never retain a nationally advertised law firm that promises the world to insureds. There are also attorneys who claim to be ERISA experts. They write books and publicize themselves as sympathizers of ERISA claimants, but yet wouldn’t take on a non-wealthy ERISA claim to save their lives. It’s all a big promotion to convince hurting insureds to agree to pay high costs to attorneys who are desperately looking for cases to their own financial demise.
Therefore, if you do decide to go the attorney route, be very careful who you retain, and make sure you check him/her out before signing on the dotted line. Attorneys are hurting just like anyone else these days and are not above taking advantage of those who need their benefits to pay bills. I’d be very careful.
