What Happened to the Minor Personal Injury Case?
As a Chicago personal injury attorney practicing in this field for over 35 years, I have handled nearly every type and size of case imaginable. They include: Medical Malpractice, Birth Injuries, Nursing Home Neglect, Brain Injuries, Spinal Cord Injuries, Wrongful Death, Product Liability/Dangerous Defective Products, Automotive Product Defects, Wheel Blowouts/Tire Blowouts Multiple Parts and Separations of circlips throughout the United States, Tire Defects, Tire Belt Blowouts and Separations throughout the United States, SUV Rollover Accidents, Car Accidents, Truck Accidents, Motorcycle Accidents, CTA Accidents, METRA, AMTRAK, on-the-job injuries, construction accidents, premises liability.
Obviously, the most common of all injury cases is still the simple car or truck accident. Two vehicles collide and one person is injured to some extent. The victim may visit an emergency room where they are diagnosed with what are commonly referred to as “soft tissue injuries.” This sentence means that there are no broken bones or torn tissues that require surgical repair. They may have some bumps and bruises, but few other visible injuries. Follow-up care may or may not occur, but if it does, it is usually with a doctor of chiropractic or physical therapy center. In a relatively short period of time, the injured person is back to work and in good health.
These people often feel that they should be compensated for their injuries, pain, suffering, and lost wages at work. They pick up the phone and contact a personal injury attorney to handle their claim. Now the problem begins.
Twenty-five years ago, these types of cases were easily resolved in a short period of time without filing a lawsuit. The Chicago personal injury attorney obtained copies of the client’s medical records, bills, and lost wages. The claim was filed with the civil liability insurance company of the culprits. A claims adjuster then contacted the attorney, and after a few phone calls, an agreement was reached that ended the matter. The lawyer was happy that he did not have to incur the time and expense of a lawsuit. The client was equally pleased as he received prompt and reasonable compensation. Unfortunately, this simple process is long gone and will probably never return.
You might wonder what happened? The simple answer is that a few bad auto liability insurance companies changed everything. In Chicago, these insurance companies generally provide minimal liability coverage to people with poor driving records for which the company charges a hefty premium. Companies also maintain in-house or captive law firms to defend their policyholders in the event of a lawsuit. Through the combined effort of insurance companies and law firms, they never settle a claim prior to the lawsuit and if the lawsuit is the day the jury trial is about to start.
Prior practice requires victims of a minor personal injury claim to hire an attorney and file a lawsuit against the responsible party. Depositions are taken at great cost, including testimony from doctors who demand fees of $1,000 to $2,500. The net effect is to deter both the injured and the attorneys representing them from making a claim or filing a lawsuit. The cost of processing the case is prohibitive in terms of time and cost. In other words, would you spend $3,000 and spend 2 years of your time with the possibility of getting $4,000 back? The obvious answer is no.
Slowly but surely, this practice was adopted by most insurance companies to the point where it is impossible to settle any case without a lawsuit and lengthy litigation. The courts have done nothing to combat this practice through simplified rules or binding arbitration. Second, it continues to allow insurance companies to practice law effectively through dummy law firms staffed with salaried attorneys prepared to defend every claim. To level the playing field, insurance companies should not be allowed to practice law, but instead hire independent lawyers from private law firms to defend the interests of their policyholders. Then each party would be subject to the same time and expense, creating an incentive to settle cases at an early stage.
The Illinois Department of State Insurance is also guilty of failing to force insurance companies to settle valid claims without trial or submit to penalties. Businesses continue to make record profits while people are not fairly compensated for their injuries.
Unfortunately, until the courts place the parties on an equal footing, the minor personal injury case has been declared dead in Chicago and the state of Illinois.
Rick Grosman