“Palm Beach Gardens firm accused of filing lawsuits just to collect legal fees”

by Walter Olson on May 14, 2010

The firm often sues insurance companies for amounts under $50, sometimes under $5. A manager with one defendant said the lawyers can use a $1 settlement to leverage a demand for thousands in legal fees payable by defendants. The firm, which has filed more than a thousand cases since last summer, acquires potential claims from medical clinics which bill the insurers over care dispensed after no-fault auto accidents; often the clinics have been paid for the bulk of the case, leaving a small unpaid sum. [Jane Musgrave, Palm Beach Post]

{ 2 comments }

1 JW 05.14.10 at 7:59 pm

The article conveniently forgets to discuss the mandatory 30 day pre-suit demand letter. Pay on the letter and no attorney fees are owed.

2 Doug 05.16.10 at 7:30 pm

Why should they pay the claim if the insurance company correctly determined the rate of payment? As the lawyer said, if they shaved a buck or two off the settlement, pretty soon that adds into big money. Here to, once this law firm carves off several thousand dollars in fees per case, that adds up after awhile. I’d fight him to.

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