Nevada Personal Injury Attorney

BY VALERIE MILLER

Often -- some people would say too often -- screeching brakes and the sound of metal on metal means a personal injury attorney is about to get more business. Although they were once flush with insurance money, some local personal injury lawyers say they are taking a financial hit as insurers increasingly delay settlements.

Industry leaders are split on why policy providers may not be willing to settle. Longtime personal injury attorney Ed Bernstein contends insurers are hurting financially and thus reluctant to pay out.

"Insurance companies make their money two ways. They take the premiums and invest them and they take as long as possible and pay as little as possible," he said. "And they are not getting a lot back on their investments anymore."
Although there has traditionally been a lag time between an injury and a settlement, Bernstein said he's seen that wait double in recent years.

"A typical claim used to take a year. Now, it takes two years," he said.

As a result, Bernstein said he has been forced to take more cases to court, file more lawsuits and hire more experienced litigators. The firm has higher expenditures and fewer financial rewards.

"We are working a lot harder for less," he said.

Bernstein has seen his profits diminish as insurers have taken a hard line. At the same time, law office revenues have increased.

Edward M. Bernstein and Associates has the advantage of 33 years in personal injury litigation. The longer the law firm has been in business, the greater the name recognition and stream of clients.

Glen Lerner, also one of the valley's most recognizable personal injury attorneys, has nearly 20 years of local practice on his resume. The "Heavy Hitter" of television ad fame said his business is holding up. However, that success comes despite what Lerner called "outrageous" settlement offers to his clients the past few years.

"People need money so badly, but as an attorney, you are begging your clients not to take crappy money," he said.

Unemployed, injured and just plain broke clients sometimes take what Lerner calls "pennies on the dollar" for their claims.

Sometimes Lerner agrees with his clients in taking a less-than-desirable settlement. Small cases usually don't work financially when they go to trial. For example, an insurer's $6,500 settlement offer in a case where the accident victim had $4,000 in medical bills might be accepted. Lerner would try to get reductions from health care providers so the client can keep more of his or her settlement.

"The doctors might get 60 or 70 cents on the dollar," he said.

Another factor that might be squeezing personal injury attorneys is a decline in cars on the road, and thus fewer accidents. Lerner estimates the number of motor-vehicle mishaps is down 20 to 30 percent in the valley.

Gasoline consumption in Nevada has dropped, likely signaling less automobile use, AAA Nevada spokesman Michael Geeser said.

Nevertheless insurance companies may be fed up with paying on frivolous claims, and overpaying on legitimate injury accidents.

"It has become tougher to sell auto insurance here because of all the claims, so it might make it harder to settle cases," Geeser said.

Nevada has a much higher rate of auto accident-related claims than the rest of the nation. In the United States, about 25 percent of automobile accidents result in injury claims. However, nearly 40 percent of all Nevada motor vehicle accidents involve personal injuries claims, AAA statistics show.

Nevada's insurance premium rates are among the nation's highest, Geeser added. The Silver State's average policyholder pays $1,006 a year; nationwide that average is $817.

"It could be that our area has more severe accidents involving personal and property damage. But when you see our numbers are so far away from the rest of the country, there is something going on here," Geeser said.

Insurers might be ready to take a stand, Farmers Insurance spokesman Bob Compan surmised.

"They might be saying, 'I really don't want to overpay anymore,' " he said.

Nevada has the highest number of auto accident victims with attorney representation in the nation, Compan said. He could not specifically talk about Farmers Insurance claims.

Compan maintained insurers aren't the evil ogres some might make them out to be. When someone is legitimately hurt, Farmers will pay to make them whole again.

"At Farmers, we will pay what we owe on claims, nothing more and nothing less," he said.

Contact reporter Valerie Miller at vmiller@lvbusinesspress.com or 702-387-5286.