Posts by htsyl

Settlements – Managing Your Money

By htsyl, 22 March, 2010, No Comment

Most legal disputes end with a settlement agreement reached between the parties. Contrary to popular belief or your favorite TV show, everyone does not get their “day in court.” In cases of personal injury, and other cases that lawyers accept on contingency (they get paid when you get paid), your attorney would prefer to settle the matter out of court. Settlements usually mean that the case is over with faster and the attorney has to spend less of his own money up front to “get the job done.”

If you are a plaintiff in a lawsuit (the injured party seeking monetary damages) and there is a possibility that you will receive a significant sum of money, your attorney should take steps to make certain that you have resources available to help you manage that money. I am not going to pick a magic number and say that if you get more than a certain amount, then the financial advice should kick in. It could be argued that it is important with any amount. Because whether it’s $20,000 or $2 million, when it’s gone, it’s gone.

If you are involved in a settlement/arbitration/mediation in an attempt to bring your case to resolution, and your case is “worth” a significant sum, your attorney should make available to you, at the time of the conference, a financial advisor. The discussion may involve decisions about a lump sum payment versus an annuity, which will make payments to you over time, or a combination of financial payments. You need to understand what these options will really mean for your particular life situation. For the most part, annuities are attractive to the insurance company that has to pay because they are cheaper for them. And if you will have trouble managing your money over the long haul, an annuity may be in your best interests. However, a lump sum payment that is handled wisely, could be better in the right situation. You need to have an independent, objective advisor.

When it comes to dollar signs at settlement time, your attorney is NOT an independent party. They are seeing dollar signs, too, and may find it difficult to separate their own financial interests from yours. This is another one of those times to remember this — Don’t check your common sense at the door!

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Mediation – Arbitration – Settlement

By htsyl, 6 March, 2010, 1 Comment

Mediation is a process used to settle legal disputes. It is most frequently used as a settlement technique in family law (divorce and custody) and personal injury (e.g., auto accidents and medical malpractice). In family law, many court systems have made mediation mandatory in divorce cases in an attempt to cut down on protracted courtroom battles.

I am going to talk today more about the mediation process in personal injury cases. Your lawyer may also describe mediation as a “settlement conference” or “arbitration.” At a mediation (which may take a full day), both sides are present and there is an independent mediator, or arbitrator, who charges a fee for their time. The two parties have to agree on the who the mediator will be, which makes sense, because if one side or the other is unwilling or unable to work with a particular person, the process will be meaningless. Mediators have different styles and techniques, and your attorney may prefer a particular person as the mediator in your case, and might even recommend waiting for that particular person to be available if their schedule is full.

You might think that everyone sits down in one room together and tries to work things out. In a traditional mediation, this is not what happens. Each side (the clients and their attorneys) is set up in a separate room. The mediator then talks to each side and moves back and forth between the parties to try to reach a settlement. The mediator will have been paid to review the paperwork in the case prior to the day of mediation, and may have requested that each side provide a written summary of their case. Because this can be a somewhat expensive process, mediations of this type are most frequently used in cases that are “worth” more money. In other words, you won’t have a mediation to argue over $20,000 because it would not be a wise financial investment to pay a third party to do that.

So, you are thinking, why is this discussion in a blog about “bad lawyers”? Here are a few things that we will talk about later — what is the reason for scheduling the mediation (do you feel like your lawyer is pushing you into this) — has your lawyer talked to you about how to manage your money if you may be receiving a large settlement (or annuity) — are you physically up to the task of sitting through a day or more of negotiations (when you may still be on pain medications or in pain from your injuries)? Discussion about this to follow soon, along with some new “Tales of Bad Lawyers” to illustrate.

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Just Do It Yourself!

By htsyl, 26 February, 2010, No Comment

One way to avoid having a bad experience with a lawyer is to not use one at all! There are some things that can turn out just as well without a lawyer and you will have a hunk of cash left in your wallet at the end. Divorce is one of those things, or at least it can be if you can get past the highly charged emotions and just sit down with your partner and work out the details. Divorce doesn’t have to be complicated or costly. If you and your spouse can agree on how to divide property and resolve any child-related issues, you can file what’s known as an uncontested divorce. There are great resources available on the Internet to guide you through the process in your state and prepare all the right paperwork to be filed with the court. I have personally prepared uncontested divorce papers for couples in my work as a paralegal and know that you do not always need an attorney to “fight” it out in court. I recommend the services of LegalZoom.com – they have a system that asks you all the questions that need to be addressed in a divorce in your state. They prepare the paperwork for you and can make changes if you change your mind before filing it with the court.

One of the things that gives lawyers “power” in our society is that they keep the legal system cloaked in mystery. They get your attention (and access to your checkbook) when you are at your most vulnerable. It can be worth it to gather your thoughts and figure out if you really need to get all mixed up in a drawn out legal battle about who gets the china and the dog. Even issues about your kids can frequently get worked out if you remember that it’s about the kids, not about you.

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