Beware of TV/Billboard Personal Injury Law Firms: Here's Why

A man wearing a suit slips a stack of cash into his inner breast pocket. — (Image credit: Getty Images)

When was the last time that, when watching TV, you did not see commercials for personal injury law firms who claimed to “fight” for their clients, or offered glowing testimonials from deliriously happy people displaying high-dollar settlement checks and claiming that was what the law firm got them?

Think that is reality? If so, go online, to Yelp or another review site, to read the firms’ negative reviews — and take those five-star, “Amazing!” comments with several grains of salt.

If you or someone you know is tempted to hire one of these settlement mills — high-volume personal injury firms that advertise massively on TV, radio and billboards — then a study by Stanford Law Professor Nora Freeman Engstrom should give you reason to pause.

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Paraphrasing a conclusion in her law review article: A client’s case is often settled for far less than if they had retained a skilled attorney who provides more individualized service.

Her law review article, written in 2010, is more relevant and accurate today than ever before.

Cases settled without an OK, with medical bills left unpaid

Listening to my office voicemails on a recent Tuesday, I heard a message from two former clients of a Dallas law firm that has a large presence on TV, radio, billboards and the internet. The clients were involved in a serious auto accident that wasn’t their fault and retained a law firm recommended by their employer, “who was impressed by their TV ads.”

H. Dennis Beaver

After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column. "I love law for the reason that I can help people resolve their problems," he says. "I know it sounds corny, but I just love to be able to use my education and experience to help — simply to help. When a reader contacts me, it is a gift."

(As an aside: Sometimes it is best for an employer to not recommend a lawyer or other professional to employees without doing thorough due diligence — such as by researching their qualifications and history.)

The voice message went on: “This was the first time either of us ever dealt with an attorney, so we did not know what to expect. Almost at once, we felt ignored, our phone calls were not returned, and when we spoke with someone, they knew nothing about our (individual) cases, which they settled without approval and did not pay all of our medical bills.

“Two very nice attorneys at the firm who worked on our cases called us, saying they were quitting because this happens often. Also, they said that we should read your articles about lawyers who do not pay doctors for guidance and to call you.”

I had just finished listening to the voicemail when a text message arrived. “We referred two clients of our former employer to you. May we talk?”

I replied, “Of course, please call.”

I then did an online search, verifying that “Cheryl” and “David” indeed worked at that law firm.

'Working on an assembly line'

This was not the first time that attorneys who regularly read this column contacted me, upset with what they described as incompetent, unethical and sometimes illegal conduct by management at their firm.

Cheryl and David told me they were friends when they graduated from law school and were hired by a law firm that described itself as a “high-volume personal injury and employment law practice where you will have immediate contact with clients, get lots of trial experience, with highly competitive compensation.”

“It turned out to be just the opposite of what they advertised and what we were told in the interviews,” Cheryl said.

Yes, they admitted, their salaries were good, but they didn’t feel like they were practicing law.

“It felt as if I was working on an assembly line with hundreds of cases to settle,” David said, “and there was no way I could possibly help clients with that huge caseload.”

He also noted that the firm did “little screening of cases or investigation. Often months down the road, when someone with an ounce of common sense looked at the file and realized we had no case, or it was a weak case because our client was partially to blame for the accident, or there was little insurance on the other side, senior lawyers pressured clients to settle quickly.

“Sometimes they would settle with the insurance company without even talking it over with the client, while leaving some bills unpaid.”

Cheryl added, “The entire office was set up to do as little work on files as possible, where lawyers like David and me were glorified claims adjusters with a law license.”

That’s a statement I have heard often over the years from attorney employees in these “settlement mills.”

The firm stole money from its clients

I asked if there was a straw that broke the camel’s back, leading them to quit. There was indeed.

Cheryl explained, “The firm always referred clients to doctors, chiropractors and physical therapists who ran up huge bills to increase the value of the claim. Then they had clients sign an assignment of benefits for their auto medical payment insurance — that should have gone to the doctors without the involvement of the law firm — keeping a portion of it and settling the case while leaving several large unpaid bills as the responsibility of the patients.”

I recommended that Cheryl and David talk to a Houston colleague of mine and also urged them to contact the State Bar of Texas.

When I know more, I’ll update you in a future article.

If you’re in need of a personal injury attorney, here are some tips to help ensure you work with one who’ll do right by you:

Get referrals. Ask friends, family or colleagues who they worked with if they’ve had a personal injury case.
Do your research. Consider the attorney’s experience in personal injury law and check their reviews on websites such as Lawyers.com and Avvo, paying particular attention to the negative ones.
Ask questions. Make sure you ask the lawyer about their experience and fees when you first meet.

As a bonus, I recommend taking a few minutes to watch this podcast by Americus, Ga., attorney Beau Shrable, a lawyer I salute for his honesty and care for the public.

Dennis Beaver practices law in Bakersfield, Calif., and welcomes comments and questions from readers, which may be faxed to (661) 323-7993, or e-mailed to Lagombeaver1@gmail.com. And be sure to visit dennisbeaver.com.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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After attending Loyola University School of Law, H. Dennis Beaver joined California's Kern County District Attorney's Office, where he established a Consumer Fraud section. He is in the general practice of law and writes a syndicated newspaper column, You and the Law. Through his column, he offers readers in need of down-to-earth advice his help free of charge. "I know it sounds corny, but I just love to be able to use my education and experience to help, simply to help. When a reader contacts me, it is a gift."