Tennessee Injury Law Center

September 23, 2010

Can My Lawyer Charge Me Interest on Case Expenses?

I was hurt in a car accident. I talked to a lawyer and he sent me a proposed contingency fee agreement. The agreement says that I have to pay the expenses he incurs in prosecuting my case and that interest accrues on the expense money. Is that normal?

It is normal for a lawyer handling a contingency fee case to ask the client to re-pay the lawyer for the money spent on case expenses out of any settlement achieved in the case. It is not normal, however, for lawyers to charge interest on the expense money they advance for case expenses, although it seems like more and more lawyers are charging interest.

The lawyers who charge interest may have a contract with a private company that charges them interest, and then they pass the interest that they pay while the case is pending onto you as their client. The interest rate may be very high – much higher than the “prime rate.” The lawyer does not profit from this, but simply passes the cost of the interest on to you. Sometimes there are additional fees associated with this service that are passed on to you.

September 22, 2010

The Building Inspector Messed Up!

by The Law Offices of John Day, P.C.

I live in a small town in Middle Tennessee. I just had an addition put on my house. The building inspector from my town came and approved the work done on the house, including the electrical work. Two days later the entire house burned. The cause of the fire was improper wiring work on the new addition. Can I sue the building inspector for failing to discover the bad wiring job?

No. Under Tennessee law a local government cannot be sued for negligent inspection. Thus, even if you could show that the building inspector did a bad job, neither the inspector nor his employer can be sued.

You may have a claim against the electrical contractor and perhaps even the general contractor. An experienced trial lawyer can help you investigate this claim and determine what rights, if any, you have.

September 21, 2010

Do I Have to Pay Income Taxes on My Personal Injury Settlement?

by The Law Offices of John Day, P.C.

I am a Tennessean. I was received some broken bones in a car wreck earlier this year. I spent a couple days in the hospital and missed six weeks of work. The case was just settled and I received a check for a significant amount of money. Do I have to pay income taxes on the money I received?

No, you do not have to pay federal income tax on the money you received

As of today (and for many, many years) there is a special federal law that permits people who receive money in personal injury cases where there has been physical harm to exclude the monies received in a settlement or lawsuit from their income for federal income tax purposes. You do not need to report it to the government and you do not need to report it.

September 20, 2010

Can An Attorney Charge for Travel Expenses?

by The Law Offices of John Day, P.C.

My lawyer just settled my personal injury case. At the time the lawyer distributed my share of the money to me, he withheld $322.56 for airfare and $150 for a hotel bill. When I asked him what those expenses were for he said he had to travel to New Orleans to take the deposition of a witness in the case. Can he do that?

Yes, if the fee agreement that you signed provides that he is to be reimbursed for out-of-pocket expenses incurred in connection with the case. That type of provision is part of the typical fee agreement in personal injury cases and therefore I would not be surprised if the fee agreement you signed contained that provision. Your lawyer will give you a copy of your fee agreement if you cannot find the your copy.

Of course, the expenses incurred should be reasonable. What is reasonable? A Motel 6 is on the cheap end and a Ritz Carlton is usually too expensive. Something in the middle should do nicely. Most attorneys do not asked to be reimbursed for first-class air travel, although some may do so for international flights or cross-country flights. You shouldn’t expect that your lawyer is going to eat at Taco Bell, but you should not be asked to pick up the tab for a big meal and expensive wine at a five-star restaurant.

September 19, 2010

What Is Med Pay Coverage?

by The Law Offices of John Day, P.C.

I was hurt in a car wreck and told my insurance company about the wreck. The claims adjuster said that I had $10,000 in medical payments coverage and that if I would send the bills in the insurance company would the bills up to $10,000. Why should my insurance company have to pay for my medical bills when the wreck was not my fault?

Your insurance company will pay because you paid for this insurance coverage. It can be very helpful to you if the wreck was your fault or if the you cannot find the driver who hit you. It can also be helpful to help you pay co-pays and deductibles not covered by your health insurance.

The fact that your insurance company pays some or all of your medical bills does not let the other driver or that driver’s insurance company off-the-hook. You can still seek payment of the bills from your insurance company and, if the other driver is liable for the crash and the bills were reasonable and incurred for necessary medical services in connection with the wreck then you can collect them again from the at-fault driver and that driver’s insurance company. However, your insurance policy probably requires you to re-pay them if you receive payment for your medical bills from the at-fault driver and that driver’s insurance company.

September 19, 2010

Product Burned House and Family

by The Law Offices of John Day, P.C.

Our house caught on fire and three members of my family got burned. The fire department said that the cause of the fire was a kerosene stove we were using to supplement the heat from the furnace because it was really cold outside. Do we have any rights against the manufacturer of the kerosene stove?

Perhaps. It is essential that you contact a lawyer who has experience in products liability cases as soon as possible. It the meantime, preserve whatever is left of the heater and do not allow any further damage to the premises or start the repair / clean-up process.

You will need the stove itself so that you can determine what went wrong with it (if anything). You need to preserve the scene until an expert can confirm that fire department’s opinion of the cause of the fire. The fire department might be correct on the cause of the fire, but if the department does not have a lot of expertise in cause and origin of fires their opinion may be questioned.

September 17, 2010

Why Didn’t My Lawyer Give Me My Money?

by The Law Offices of John Day, P.C.

My personal injury case settled three days ago. I signed the check and gave it to my lawyer. I still haven’t got any money. What is going on?

When a personal injury case is settled, the insurance company sends a check and a release to the claimant’s lawyer. The lawyer asks the claimant to sign the release and endorse the check. When the check is endorsed, it is deposited into the lawyer’s trust account. The lawyer cannot immediately write the client a check because the insurance company’s bank has not yet paid the check. It can take as many as 10 business days for a check to "clear." As soon as the check clears the lawyer’s bank the lawyer will be able to write you a check.

The lawyer may not be able to write you a check for all of the money to which you are eventually entitled. For example, if you received Medicare benefits in connection with your personal injury, Medicare must be re-paid from the proceeds of the settlement. Medicare is horribly slow about getting settlement figures to lawyers in these cases, so the prudent lawyer holds out more money than is probably required so that he or she can be assured that there will be enough money to repay Medicare. Thus, the lawyer may write you one check now and another check after the Medicare issue has been worked out.

September 16, 2010

I Don’t Think My Lawyer Has Any Money!

by The Law Offices of John Day, P.C.

I was in a trucking accident some time ago and was badly hurt. I went to see a lawyer based on the recommendation of a friend at church. I don’t mean to be rude but the lawyer’s office was a disaster. The carpet was nasty, the place smelled like cigarettes, there were papers and books everywhere, and there was dust everywhere. The lawyer was eager to represent me and said he would work on a contingent fee, but said I would have to pay the fee to file the case in court. Is that normal? Should I be concerned at the look of the office?

First, it is not normal for a personal injury lawyer to ask the client to pay court costs or any of the other costs of litigation. Most lawyers in this type of case advance those costs, especially for people of low or moderate incomes, and you are appropriately wary of a lawyer who asks you to advance those costs.

That request, and the condition of the office, may indicate that the lawyer is having some financial issues. (Of course, it may just mean he is a cheap slob.) The financial condition of the lawyer you hire is important, because the lawyer must have adequate resources to finance your case and work without pay while the case is pending. A lawyer who cannot afford to finance the case may hire poor quality experts or not do things necessary to put your case forward in the best way, all of which can hurt your ability to recover the true value of your case. Likewise, a lawyer who is short on capital may recommend that you settle your case for a lesser amount than its true value to ensure that he gets paid for the work he has done.

September 15, 2010

Do I Need a Tennessee Lawyer?

by The Law Offices of John Day, P.C.

I live in South Carolina but was injured in a wreck with a big truck on Interstate 40 right outside of Nashville. Do I need a Tennessee lawyer?

You will almost certainly need a Tennessee lawyer. A South Carolina lawyer will probably not be familiar with Tennessee law and will not be able to file a lawsuit here. Quite candidly, an experienced personal injury lawyer from South Carolina would probably be able to negotiate a settlement for you, but once again may be hampered by a lack of knowledge of Tennessee law and procedure that could impact the value received at settlement.

If your hire a South Carolina lawyer he or she will probably ask the assistance of a Tennessee lawyer to help him or her with the case. I have helped lawyers from dozens of states in this situation, and it works quite well if the out-of-state lawyer calls us early enough to protect your rights. Tennessee law requires that such cases be filed within one year of the date of accident and, unfortunately, several times a year I get a call from an out-of-state lawyer who missed the one year deadline.

September 14, 2010

Why Was I Charged $5432 for Court Reporter Fees?

by The Law Offices of John Day, P.C.

I just settled my personal injury case. We were a week away from trial when we settled. When I got my money there was $5432 deducted for court reporter fees. What are they and why did I have to pay it?

The typical fee agreement in personal injury and wrongful death cases requires that the client reimburse the lawyer for out-of-pocket litigation-related expenses. Many times, the most significant of these expenses are fees paid to court reporters.

Court reporters don’t just write down and transcribe testimony in court. They also write down and transcribe the testimony of witnesses and parties during the discovery phase of a lawsuit. There is usually a court reporter at each deposition, and they charge not only for being present but also for writing down and transcribing testimony. In Nashville, a court reporter charges about $2000 for one day of deposition testimony.