Trial Lawyer Hypocrisy Act

If there's one thing personal injury lawyers are especially good at, it's exploiting the misfortunes of their clients while devising new ways to line their own pockets.
Colorado House Bill 1168 is this year's prime example. While claiming to help injured parties receive full compensation for damages caused by the fault of someone else, what it really does is guarantee that the injured person, in order to be fully compensated, must hire a lawyer.
Since most personal injury cases are handled on a contingent fee basis, that means that before the injured party is paid, the trial lawyer will extract his fee of as much as 40 percent.
HB 1168 should be titled "The Trial Lawyer Hypocrisy Act of 2010" and its sponsors, Rep. Claire Levy, D-Boulder, and Sen. Patrick Steadman, D-Denver, should be embarrassed by the language of their own bill.
Another favorite tactic of personal injury lawyers and their lobbyists is to make the insurance company the villain. "When [an insurance company] seeks repayment of the benefits provided to an injured party, the repayment reduces the amount available to an injured party to compensate . . . for injuries and damages," the bill declares. The same could be said of attorney's fees, certainly. At issue is the practice of subrogation, which sounds complicated but really isn't. Here's how it works today:
If you are injured and require medical treatment due to someone else's actions, your insurance company pays your medical costs according to the terms of your policy. The insurer can then sue the person at fault (or his insurance) to recover those costs. Likewise, if you decide to initiate the lawsuit and are awarded medical costs, your insurance policy states that your insurer is entitled to be reimbursed for the costs it has paid on your behalf.
Under HB 1168, your insurer would be prohibited from suing on your behalf to recover those expenses. Only you could sue the other party. So while the insurer can litigate using staff attorneys, you, of course, must hire a private attorney who would demand up to 40 percent of whatever compensation you receive.


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