Contrary to public opinion, it's ridiculous to think that a personal injury lawyer is going to file a frivolous lawsuit. The truth is that if the lawyer doesn't have the wherewithal to identify strong from weak claims, he will be out of business in short order.
The way the system works is that insurance companies do not pay personal injury claims simply because a lawyer makes a claim or files a lawsuit. Often, the insurance companies, especially in medical malpractice cases, refuse to pay a dime even in clearcut cases because in Indiana, the worst day the insurance company can have is paying out $250,000.
Remember, insurance companies are in business to make a profit for their shareholders and they don't make money by paying claims. Therefore, most insurance companies will deny claims until the last possible moment when it is clear to them that a jury will award a much larger amount than they can settle the case.
Most personal injury lawyers work on contingency fee agreements with clients. The contingency fee is only generated after the client receives a settlement or verdict. If there is no recovery of money, the attorney has dedicated months or years of his time on a case without the payment of a legal fee. They lawyer has also put his or her own money into the costs associated with a claim. So, it does not make fiscal sense for personal injury attorneys to accept cases that are weak.
Let's put into perspective. Say a personal injury lawyer files a frivolous lawsuit. They will be putting into the case, anywhere up to two years, they have to pay their office staff, and they have to pay expenses, which can range a couple of thousand to a hundred thousand bucks depending on the case. How many of these so-called frivolous lawsuits can an attorney stand to lose?
Frivolous lawsuits exist. Sometimes a lawyer misjudges the facts or has been taken for a ride by a client, but the simple reality is that they are much less frequent than viewed by the eyes of the public.
If you have any questions about a LaPorte County personal injury matter, call Guy DiMartino Law at (219) 690-8997.