Wednesday, September 8, 2010

Don't Ask For A Reduced Payoff when the Case was Settled for Significant Money.

Every once in a while I will get a call or email from an attorney requesting to negotiate a payoff. The requests fall into 2 general categories;
a. Matters where the recovery was modest and there are multiple liens and
b. Matters where there was "a significant recovery" but the attorney just wants to put more money in the client's pocket.
Because our rates are so low and we assume all the risk, we are reluctant to negotiate at all; but we will in situation (a) above. We don't want to be easy, nor do we want to be an impediment towards resolution.
In situation (b) we will rarely, if ever negotiate. Clients and attorneys have to understand that funding advances are part of the eventual settlement proceeds. So to ask us to take less, just for the sake of taking less, I just don't buy it.
I guess the point I'm making is; "Pick and choose your spots". We will try to do the right thing!

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