Tennessee Injury Law Center : Lawyers for Personal Injury and Wrongful Death : Serving Memphis, Nashville, Knoxville

I was injured in a car wreck and have been out of work for months.  Money is very tight.  I spoke with a lawyer and he told me he could loan me $1000 a month until my case settles.  He also said that I do not have to pay interest.  That seems like a good deal to me, but another lawyer I spoke with refused to do it, saying it was not ethical.  What's the story?

The second attorney you spoke with was correct.  In Tennessee it is unethical for an attorney to loan you money while he or she is representing you in a case.   An attorney who promises to do so or actually does so should be reported to the Tennessee Board of Professional Responsibility at 800.486.5714.   This sort of conduct can result in discipline against the attorney, including the loss of his  law license.

Why should you care about the ethical failings of an attorney?  If the attorney is willing to risk his or her law license to get  your case, do you really think you can trust them to represent you with your best interests in mind?  

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My lawyer told me that he was going to have to spend a bunch of money to prepare exhibits at trial.  Why is that necessary?

Exhibits are necessary to communicate your case to a jury.  Many things can be communicated by oral testimony, but other matters are best communicated by documents, charts, models, computer generated re-enactments, etc.

Some exhibits - such as computer simulations - can be very expensive.  Other exhibits cost virtually nothing, such as pieces of paper enlarged via video camera on a screen.  

Experienced lawyers always think about the most effective way to communicate information to juries, and that includes consideration of various exhibits.  Experienced lawyers must take into account the likley value of the case in determining what type of exhibits can be used.   For example, it would be crazy to spend $5000 on exhibits in a case where the likely jury award was only $20,000.

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 I live in Indiana but was injured in a car accident on Interstate 65 right outside of Nashville.  Do I need a Tennessee lawyer?

You will almost certainly need a Tennessee lawyer.  An Indiana 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 Indiana would probably be able to negotiate some sort of 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 an Indiana 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.

So, you can hire a lawyer back home or you can hire a Tennessee lawyer from the outset.  We recommend that you read our Legal Guide "Understanding How to Hire a Lawyer in Personal Injury and Wrongful Death Cases" before you hire a lawyer in either state.  

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I have a personal injury case that was just settled.  I agreed to pay a contingent fee and the lawyer's out of pocket expenses.  One of the expenses is a first class airline ticket from Nashville to Atlanta for a deposition - at the cost of $1500!  Can the lawyer charge me for that expense?

You should contest the charge, but at the end of the day what will happen will depend on the exact language of the contract, your persistence, and the lawyer's conscious.

There is nothing legally wrong with the contract providing that the lawyer gets to fly first class at your expense.  If that is what you agreed to do then you are legally on the hook.

If the contract is silent on whether the lawyer gets to fly first class, then you are responsible only for "reasonable" charges, and absent some special disability for the lawyer I think most people would agree that paying $1500 to fly first class for a 35 minute flight is not reasonable.  Hopefully the lawyer will agree and simply charge the coach rate and pay for the balance out of his or her pocket.

If you cannot reach an agreement, insist that the lawyer hold the entire amount in his or her trust account while you pursue whatever form of dispute resolution your contract provides.  The Nashville Bar Association has a Fee Dispute Committee that will help you resolve this matter at little or no charge.

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I was hurt in a boating  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 an attorney  handling a contingency fee case to ask the client to re-pay the attorney for the money spent on case expenses out of any settlement achieved in the case.  It  is not normal, however, for an attorney to charge interest on the expense money they advance for case expenses, although it seems like more and more attorneys are doing it.    

The lawyers who charge interest may have a contract with a private company that charges them interest on case expenses, and then the attorney passes the interest that he or she pays 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 practice, 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.

There is nothing illegal or unethical about this practice.  However, it does increase the cost of legal services and is one factor you should take into account in determining what lawyer to hire for your personal injury or wrongful death case.  If a lawyer wants to charge you interest, make sure you ask what the interest rate is and how it is calculated.  Sometimes the “APR” (annual percentage rate) is much higher than the quoted rate.  Also, make sure you ask it there are any other charges associated, such as "file opening charges" and "discounted case payments."

Our firm has never charged a client one penny of interest.   We believe that the contingent fee we charge adequately pays us for our professional service and for advancing case costs on behalf of a client.   

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I have interviewed a lawyer from out-of-state and she explained that she will have no problem representing me in Tennessee because she has a private plane and can be here in just a couple hours.  Should that concern me?

Some lawyers use the fact that they have private planes as a marketing tool. If you hire such a lawyer, make sure you understand how much you will be charged for use of the private plane during your case. Private plane expenses can be much higher than commercial air travel or ground travel, and you need to know how you will be charged for these flights. Responsible lawyers who use private planes in their law practice will charge you only the cost of what a commercial airline would charge for a pre-purchased, coach ticket on a commercial airline for the same flight.  

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I hear personal injury attorneys advertise that they will work on a "contingent fee."   What does that mean?

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I am sure my case is going to settle soon. Can my attorney lend me money toward the settlement I know I am going to receive?

No.  In Tennessee it is unethical for an attorney to loan you money while he or she is representing you in a case.   Rumor has it that some attorneys will promise potential clients that they will help them with living expenses and that some attorneys actually do it.   Indeed,  some people say that some attorneys will offer money to clients in an effort to get hired by the clients.  However, this is  wrong, and an attorney who promises to do so or actually does so should be reported to the Tennessee Board of Professional Responsibility at 800.486.5714.   This sort of conduct can result in discipline against the attorney, including the loss of his or her law license.

Why should you care about the ethical failings of an attorney?  If the attorney is willing to risk his or her law license to get  your case, do you really think you can trust them to represent you with your best interests in mind?

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My deposition was taken today and it lasted all day.  There was a court reporter and a videographer there.  How much does it cost to have a deposition recorded by the two of them?

In my experience in Tennessee, court reporters have several types of charges.  The main charges are the per diem charge, which is the charge for showing up, using billed in full-day or half-day increments, and a per-page charge, which is the cost of each page of transcript.  There are two types of per page charges, one for the "original" transcript on and one for each copy.  The person taking the deposition pays for the original and the per diem.  The person whose deposition is taken pays for the copy.

Videographers typically charge a base fee plus and hourly charge to the person taking the deposition.  The person whose deposition was taken pays for a disc containing the deposition.

In my experience, the cost of an original transcript and per diem fee for a deposition that takes all day (7 hours or so) is about $2000.  A videographer will add another $1000.    

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I am a doctor.  I have been sued in a medical malpractice case.  My patient has asked for payment of her lawyer's fees?  Am I responsible for her lawyer bills?

Under current law you are not liable for the fees of her lawyer absent extremely unusual circumstances, even if you lose the lawsuit.   Similarly, if she loses the lawsuit she is not liable for your lawyer fees.

The only risk you have of paying your adversary's fees in a medical malpractice case is if you assert a frivolous defense or do not  participate in the discovery process in good faith.  The discovery process is  the phase of the litigation during which each side finds out about the other side’s claims and defenses. The various methods of gaining this information are often referred to as tools of discovery or simply “Discovery.” These methods include depositions, interrogatories, requests for production, medical evaluations, requests for admissions, and subpoenas.  Read more here.

The lawyer hired by your medical malpractice insurer can explain all of this to you.  In the unlikely event any fees are awarded against you they are almost certainly covered by your medical malpractice insurance policy unless you engage in intentional or fraudulent conduct.

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I hear personal injury lawyers advertise that they will work on a "contingent fee."   What does that mean?

A contingent fee is a fee that is payable only in the event the case is successful.  No fee is owed if the case is not successful.  

In personal injury and wrongful death cases some lawyers will accept the case for a percentage of the recovery.  For example, if a lawyer agrees to accept representation in a case on a one-third contingent fee, that means that the lawyer will not charge any money if the case is lost.  If the case is successful the lawyer will be paid one-third of the total recovery.  For example, if the recovery is $60,000, the lawyer's fee is $20,000.   If the case is lost, the lawyer charges no fee for the work performed on the case. 

The advantage of the contingent fee for the client is that he or she does not have to pay a lawyer a flat fee ( a set amount) or an hourly fee to handle the case.   Rather, he or she can wait and pay a fee at the end of the case and, if the case is unsuccessful, there is no obligation to pay any fee whatsoever.

Most lawyers who accept personal injury and wrongful death cases on a contingent fee basis also charge the client money for out-of-pocket expenses that are incurred by the lawyer for prosecuting the case.  These include fees paid for expert witnesses, court reporters, creation of exhibits, case-related travel and other expenses.  Some lawyers require the client to pay these expenses as they are incurred, while other lawyers advance these costs and are re-paid out of the proceeds of any settlement or judgment.  Some lawyers will insist that the client re-pay the expenses if the case is lost, and other lawyers will agree to be responsible for the expenses even if the case is lost.  If the lawyer agrees to work on a contingent fee and accept responsibility for expenses if the case is lost, the client has absolutely no financial risk for payment of legal fees and expenses in the event the case is unsuccessful.

Any fee agreement with the lawyer should be in writing to eliminate any misunderstandings.  

I have accepted cases on a contingent fee for over twenty-nine years.  Before I accept the case, I meet with the potential client and undertake an effort to determine the merits of the case.  There is no charge for an initial consultation.  

If you want to contact me about a potential case you can call me at 615.742.4880 or email me here. 

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I got hurt in a truck wreck.  I spoke to a Tennessee lawyer and he said I had a really good case.  I have lost my job as a result of the wreck and my finances are a complete mess.  This lawyer said that if I would hire him to help me on the case he would loan me $1000 per month while the case was pending and that I could pay him back, without interest, when the case was over.  Is there any reason I shouldn't do that?

Yes.  You should not do it because the lawyer's offer of money to you was a violation of Tennessee ethics rules for lawyers.  A lawyer can advance the costs of pursing the case, but cannot give a client money for living expenses or a fee for hiring the lawyer for the case.

So, you might ask, why should you care?  The lawyer's ethics are not your problem.   You need money.  The lawyer is willing to loan it to you.  Whether he or she violates ethics rules is really none of your concern.

Perhaps.  But I suggest you think about it like this:  If a lawyer  is willing to violate the rules of ethics to get a client - to risk getting kicked out of the legal profession to get you as a client, what else will he do to actually make money on your case?  Will he give you his true opinion of the value of the case, or deliberately lower it to make sure it settles and he gets his money back?  Will he pay a witness to testify in your favor - a crime that puts your entire case at risk?  Is this really the kind of person you want representing you>

No, stay away from any lawyer who offers to pay you money or loan you money.  Such lawyers are dishonest and do not deserve you as a client.

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I am sure my case is going to settle soon. Can my lawyer lend me money toward the settlement I know I am going to receive?

No.  In Tennessee it is unethical for a lawyer to loan you money while he or she is representing you in a case.   Rumor has it that some lawyers will promise potential clients that they will help them with living expenses and that some lawyers actually do it.   Indeed,  some people say that some lawyers will offer money to clients in an effort to get hired by the clients.  However, this is  wrong, and a lawyer who promises to do so or actually does so should be reported to the Tennessee Board of Professional Responsibility at 800.486.5714.

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