I agreed to the deal...
My wife convinced me that the good that would come out of donating our funds to the Cancer Society and American Heart Assoication is more important than denying my scumbag lawyer his money. So hear is what the final tally came in at:
Settlement amount =$500K.
Lawyer Share = .15* 500 - $25K = $50K (before taxes). It is hard for me to estimate how much of this will be taken by Uncle Sam. It may be nothing if the firm operates at a loss this year, but I assume it can be 30%+ if they make a profit . This would be the business tax rate. Then once he receives a salary or straight dividends, I assume some sort of income or capital gains or dividend type tax will take another chunk from him too......I may be talking out my a$$ here as I am not sure exactly how private law firms get taxed. I guess it really doesn't matter.
Our Share= $450K.
So we intend to donate $200K to the cancer society and $250K to the American Heart Association. Hopfully some good will come of that. We will also of course get the tax benefit of this donation. We are going to wait until 2009 to make the donation as we are expecintg Federal Income taxes to skyrocket w/ the D's in office next year.
Here is the other good news on this.....Although the confidentiality clause in the settlement case prevents me from sharing details of the case and settlement w/ anyone, I do have a friend who writes for the local newspaper who has received an anonymous tip that the case settled (as did a similar case in recent months against the same doctor). He will verify with the courts that these cases settled which will be a matter of public record. A little birdie tells me that this will trigger a story about the deaths involved, the cases that were filed, the fact that they settled, and the fact that we refused comment on the story due to the confidentiality clause involved. He will also report about the public thank yous we received from the Cancer Society and American Heart Assoication for the six figure donations/pledges we made to each of them respectively. This will allow him to speculate that we used our share of the settlement to make these donations. He will likely assume the normal 1/3 contingency (not the actual .15) agreement and back into a settlement amount even greater than what it actually was. Hopefully this will fuel future cases against the doctor who was sued. A little birdie also tells me that this story will not mention my lawyer's name, but will mention the lawyer who handled the other case that settled. So any future business is much more likely to get routed to that guy, not my guy.
Oh, here is the other tidbit of info I did not share, the State Attorney General is also pursuing criminal charges against the doctor involved. Not for my case specifically but for systematic abuse of the states medical laws. Unfortunatley as of right now, he still has a license to practice. Hopefully that changes too....
Thanks for all your help on this......And to any clients out there reading this thread, always remember that you have the power to re-negotiate contingency %'s w/ your lawyer once a settlement offer is received assuming you have the guts to walk away from the offer altogehter. Personally, I would never do this to a lawyer who treated me ethically throughout the case, but if they screw w/ you along the way (as is what happened to me), IMO, ethically you are "in the right" to play dirty (but legal) too.
Be safe this weekend and hug your kids before you go to bed. Trust me when I tell you losing a child, especially due to a doctors negligence/incompetece, will change your life forever.