How the Economy May Affect Your Case

One important driver of trends in case valuation is the economy, according to the latest information from a Jacksonville injury lawyer. A struggling economy impacts all business activity—and that includes insurance, which affects personal injury cases. Following are some concrete examples.

Insurers Growing More Conservative

Jacksonville injury lawyer

Insurance companies, some of which have financial arms, are concerned about managing risks and protecting assets, particularly in a bad economy. Insurers tend to have vast investments, but these are suffering lately and not enjoying high returns. As a result, insurers must limit claims payouts. Small to medium, non-catastrophic cases will not be highly valued. All tiers of claims are being pushed down. For instance, what might have been a $25,000 claim in a good economy, now becomes a difficult case to prove even for $20,000. Very small cases will suffer along with large, catastrophic claims. Insurers simply resist paying now more than ever, as they struggle to maintain their credit ratings and financial ability to cover unexpected incidents—such as super storm Sandy.

Also keep in mind that insurers, like many industries, may cut staff or resist replacing knowledgeable retirees in order to save costs. This results in fewer or less qualified adjusters. Your Jacksonville injury attorney has professional working relationships with other law firms and with insurance professionals. Due to staff cuts, those working relationships are put at risk, which can slow or hurt injury cases as your lawyer builds back trust. Also, larger caseloads for adjusters or legal staff mean slower activity.

Other Economic Factors

Are fraudsters on the rise? While your case is legitimate, insurers see an uptick of costly fraud during bad economic times. Political trends also play a role, such as calls for tort reform to reduce claims and case value. Personal injury lawyers can be the scapegoat in a bad economy, blamed for costs of insurance, medical care, and their professional services.

The bottom line is that jurors will sympathize with economic impacts on business as we all struggle to adapt to today’s downturn. While this hurts injury claimants, it also speaks to the need for powerful professional representation. In tough times you need solid advice from First Coast Accident Lawyers. Call a Jacksonville injury lawyer today at 904-278-1000.

About John Fagan

John is a Jacksonville native who grew up on the First Coast. He graduated from Bishop Kenny High School in 1975 and went to college at Florida State University where he completed a 4-year program in 3 years. John graduated from the Florida State University College of Business in 1978 and went straight into Florida State University College of Law. While in law school, John earned a position on the prestigious Law Review Board serving as its Business Editor. As a law student, John studied in the Oxford program. He also interned with the Florida Legislature working in the Florida House of Representatives Criminal Justice Committee. John was admitted to the Florida Bar in 1981. John began his legal career as a law school intern in the State Attorney's Office in Jacksonville in 1981. After his internship, legendary State Attorney Ed Austin hired John as a full-time Assistant State Attorney for the Fourth Judicial Circuit (Clay, Duval, and Nassau Counties). As a prosecutor, John tried jury and non-jury trial on charges ranging from DUI to Murder. In 1983, John moved from the State Attorney's Office to begin his career in private practice. He has practiced law for 30 years on the First Coast. For the last 20 years, John and his family have made Clay County their home. John limits his practice to personal injury and disability cases. While there are many fine attorneys in Clay County, John is one of only a few Clay County attorneys who limit their practice to personal injury and disability cases. John takes pride in helping clients resolve injury claims in ways that avoid the stress, uncertainty, and the expense of unnecessary litigation. Professional Activities John is the past President of the Clay County Bar Association and has served on the Board of the Clay County Bar Association from 2009-2013. He is an active member of the Florida Bar, and the Federal Bar of the Middle and Southern Districts of Florida. He is also a member of the American Association of Justice, the Florida Association of Justice, the National Organization of Social Security Claimants' Representatives, and the National Organization of Veterans' Advocates. Service to the Community John is involved in the Clay County Community serving as a member and Director of the Rotary Club of Orange Park, of the Clay County Bar Association, and the Putnam County Bar Association.
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