There is a lot of talk about capping fees in medical malpractice cases. Fees are already capped, of course, at one-third of the recovery, but the health care industry wants further limitation on fees charged to plaintiffs in successful cases.
Why? Because they’re not stupid. They understand that a lower fee cap means that fewer cases will be filed and those that are filed will be filed by less qualified lawyers. Why? Because lawyers generally will not file cases when they cannot earn a fair return for their efforts on the case. And more qualified lawyers will file still fewer cases because they can earn a better return on other types of work. Reduced filings mean reduced indemnity payments and defense costs, which means more profits for insurers, which presumably will lead to reduced insurance rates. Filings by less qualified lawyers means more defense wins, which means more profits for insurers, which once again will presumably lead to reduced insurance rates.
What about statutory limitations on fees paid to defense counsel? Wouldn’t that save defendant’s money? Of course it would, but that would affect the quality of the lawyer who is willing to defend malpractice cases. A very good or great lawyer will not be willing to work for below-market rates.