Legal Malpractice Settlements
Malpractice is the term used to describe unlawful actions by an individual that cause harm and damages to another. People like doctors, dentists and lawyers are subject to most of these malpractice lawsuits. Thus they prefer being insured against these things as their professions increase the risk of litigation. Legal malpractice lawsuits and settlements seem to have become a norm, as it is believed that all attorneys will at least get sued on one occasion in their careers.
The settlement cost of a legal malpractice case varies like insurance for cars. Many insurance companies have different policies to cover these damages. It usually covers the lawyer’s defense and any other monetary fine. Average costs vary depending upon the kind of law the attorney practices. Real estate, personal injury and divorce attorneys have much higher rates than usual.
The money paid to displeased clients varies on the basis of whether the lawyer has been charged before or not. Those who have many complaints against them usually pay an amount much more than those who have not been sued ever. The insurance premiums too become higher in this case. The settlement costs also differ depending on the geographic location of the lawyer. For instance, a lawyer in LA would be sued for more, than a lawyer in Tulsa. The state’s litigation situation also determines the costs.
Another important factor is the size of the firm. The better known and bigger firms have a tendency of doling out more money as settlements. But the risks attached are higher as lawyers at high end firms are usually ruthless and prefer out of court settlements to appease the disgruntled client. The rates of insurance are lower than for solo practitioners owing to the sheer size of the firm.
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