Large Personal Injury Firms May Be Bad for Your Case

Large personal injury firms may be bad for your case, especially ones that handle a large number of cases. These types of firms chase quick settlements. They are often referred to as “personal injury settlement mills”.

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These personal injury firms spend an enormous amount of advertising money. They advertise on TV, billboards, radio and the internet. Money is made by playing the numbers – bringing in large numbers of clients and using their volume of clients to drive settlements. These firms handle roughly 90% of all personal injury cases in the country.

You need to know what you are getting into before you choose a personal injury attorney.

HOW PERSONAL INJURY SETTLEMENT MILLS OPERATE

Personal injuries are personal. You are not a hamburger. Your claim shouldn’t be treated like a hamburger. The assembly line mentality doesn’t work with legal cases.

Nora Engstrom, a Stanford law professor, conducted an extensive study of large personal injury law firms. She dubbed them “settlement mills” and investigated how they do business.

Professor Engstrom’s study found that these firms do not represent clients individually. Instead, these firms rely on the volume of clients to push settlements with the insurance companies (quantity over quality).

She also found that the firms push settlements based on the expected settlement amount. Rather than reach fair value for their clients, they settled claims for less than their value.

She found most cases settled based on a formula, rather than the particular strengths or weaknesses of the case. That method produces disappointing results.

Cases most probable to result in large verdicts were settled at a deep discount. Most cases end up settling at a discount well below what jury verdicts suggest is a fair value on the claim.

Her analysis suggests the stronger the case, the less value the client received.

Cases that benefited from this churn-and-burn process were small claims and had a low probability of success at trial. Both sides (the insurance company and the personal injury mill) benefit from quickly settling claims. It’s easier for them that way. Clients with strong cases give up a lot more than those clients with weak cases gain. The lawyers and the insurance companies win, while the client with a serious injury loses.

WHAT YOU SHOULD CONSIDER IN A PERSONAL INJURY LAWYER

If you have a serious injury, you should consider what you want in a personal injury lawyer. A quick settlement or full and fair compensation for your injury? Large personal injury firms may be bad for your case.

Contact us if you want a lawyer who will assess your claims based on their own merits.

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While most of our clients hail from Austin, Round Rock, Cedar Park, Georgetown, and Pflugerville in Travis and Williamson Counties, we have also worked with clients in Dallas, Houston, and San Antonio. Other clients have come from Lakeway, Jollyville, Anderson Mill, Kyle, and Leander. If your accident was in Texas, we can help you. The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.
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