New Jersey Lawyer
SEAS WERE CALM, BUT GRAY, AT ATLA HELMMARITIME LAWYER ENDING HIS TERMScott Goldstein No new pushes for major auto insurance changes be-yond the far-reaching revamp instituted before he took office. No new tort restrictions that have yet to reach the serious stage among lawmakers in the state capital. But Pedersen remains at the ready, and actually some potentially high-impact moves are getting off the ground under his watch. "My tenure has been a little quieter than past presidents," he said, "though I have been pretty busy in any event." But that doesn't mean the big issues haven't affected him. While feeling downcast as the first president following ATLA's lost battle over automobile insurance regulations the organization says handcuff injured motorists' rights, Pedersen is launching this salvo as his term winds down: "We are going to argue strongly that this law should be repealed." Translation: The battle is not over and ATLA is unfurling a new court challenge to the regulations that designate care paths for the treatment of accident victims. Even if that fails, it could put ATLA on more solid footing to lobby hard for an overhaul of the auto insurance system in 2001, a crucial period for influencing policy because the state will be choosing a new governor and all 120 legislators in that November's election. Another development during Pedersen's presidency was the decision by Sen. John H. Adler, a Camden Democrat who was one of the key authors of the auto insurance changes, to forcefully withdraw his support for the measures. That could be the forerunner of a renewed ATLA push to repeal the state's no-fault auto insurance law or at least make that a pressing campaign issue in the 2001 election. With nearly three months left in Pedersen's term, ATLA and two health care associations are resuming the fight against the insurance regulations. These opponents in February sued the Department of Banking and Insurance, alleging approved regulations permitting insurance companies to develop so- called "voluntary" network systems amounted to poorly disguised managed-care operations. ATLA alleges the care paths or new protocols outlining medical treatment for back and neck injuries suffered in auto accidents will result in inferior medical treatment to contain costs. Doctors who don't follow the protocols run the risk of not getting paid. ATLA further contends the new layer of bureaucracy to run these care paths, in time, will raise auto insurance premiums rather than reduce them. Suggesting ATLA's long-term strategy, Pedersen said, "And when that time comes, we are going to argue strongly against this law." That second front of the fight, he said, will be focused not on the Department of Banking and Insurance, but at the legislators "and the governor, whoever that is." "We have to get our word out and convince them we are correct," he said. It shapes up as a tough political sell because state reports so far show premiums for most drivers have been reduced about 15 percent -- as promised by Gov. Christie Whitman's administration and a majority of lawmakers. On the other hand, whether those reductions can be sustained remains to be seen. Pederson said ATLA is building its case. "We have asked members to send us copies of any complaints which may be filed against insurance carriers," he said. "We've kept a record of all the complaints by our clients and the driving public." In addition, ATLA this year hired a public relations firm, Oxford Communications in Lambertville, to publicize shortcoming of the new auto regulations. Pederson points to information on ATLA's website designed "to let the public know what the basic policy does and how it doesn't really provide the adequate coverage." In essence, Pedersen has been a peacetime president, keeping the troops primed for expected battles ahead. The association this year has testified on behalf of various measures, including "the bad-faith bill" that would give consumers more power to sue an insurance company that delays claim payments, another measure that would allow patients to sue HMOs, and several lawsuit immunity bills. In addition, Pedersen and other high-level ATLA members have been meeting with editors at some of the state's most-influential newspapers. He said the impact sometimes has been swift. "Following a meeting with the Trenton Times, I sent in a piece about the bad- faith bill and it was published. Several weeks later, the Trenton Times wrote an editorial supporting our position on the bad-faith bill, citing my op-ed piece." He also used his term to do some administrative reorganizing, creating new sections within the organization. The 50-year-old Pedersen practices maritime personal injury law in Hoboken. In July, when he becomes immediate past president, Pedersen said he looks forward to focusing on his practice -- he primarily represents injured longshoremen and railroad workers. One change for sure is that he won't be doing all the traveling he now does as ATLA's top kick. "I put more mileage on my car this year," he said. "When it's time to return my car on the lease, I'm going to have to give them a check for sure." Although he won't touch claims in which the disputed fee is less than $2,000, anything above that and as much as $100,000 are grist for his practice. Beyond the possibility of counter malpractice suits, the avenue of suing non- paying clients does have other shortcomings. George Pullman, the Chicago-based ethics counsel for the American Bar Association, said, "It doesn't look great when lawyers are having to chase people for money." New Brunswick attorney Arthur H. Miller echoed that view, asserting that lawyers, for the most part, eschew collection agencies because they don't project a professional image. The problem of deadbeat clients generally is more the province of attorneys in small practices specializing in family, criminal, civil, entertainment and immigration matters. Union attorney Michael F. Alper, chairman of the Immigration, Naturalization and Americanism Section of the New Jersey State Bar Association, and Fair Lawn lawyer Steven C. Schechter, chairman of the bar's Entertainment, Arts and Sports Law Section, acknowledged they've been had. Alper said he tries to come to terms with would-be resident aliens, while Schechter often writes off arrears after three months. Prevention And then there is a form of preventive medicine: Getting the client to cough up before the lawyer can get stiffed. Many lawyers insist the client pay a significant portion of their fee upfront as a retainer -- so even if the client never pays another cent, a good chunk of the fee will be in hand. Moorestown elder law practitioner Thomas D. Begley Jr., for example, insists estate planning clients pay half the fee in the first visit and the balance on the second. He conceded, however, such clients typically have sizable assets. Anecdotes of lawyers getting stiffed abound. Woodbridge matrimonial attorney John P. Paone Jr.'s introduction to the harsh reality took place in the early 1980s, when he got hung up just after hanging up his shingle. He took a case without a big retainer with the understanding he would be paid after the divorce. "When I called the client, the client said it wasn't him; he was his brother. I knew I was speaking to the client. There wasn't much I could do." Paone later discovered the man had gambled away a large portion of the marital estate in Atlantic City. It meant the young lawyer was out about $10,000, a lot of money for a guy just beginning practice. Now he's very careful. Paone believes attorneys must start reviewing billing and collection records from the time the client walks through the door. He wastes no time when billings beyond the retainer are not paid. He sends clients a "friendly reminder letter" advising them of the retainer agreement terms and the need for payment. Most clients, he said, comply as soon as they receive the letter. He also explains in the retainer agreement and his initial discussion with the client why he imposes a late penalty on clients who don't pay on time. If the client disputes the billing, he said, he tries to resolve it quickly so it doesn't "snowball into a major problem later." With most minor disputes, he noted, his policy is the customer is always right." If the client assures Paone payment soon, he memorializes that promise in a letter. If all fails, he said, attorneys should consider withdrawing from the case, but only after sending the client a written warning "to ensure that he or she understands the gravity of the situation." Attorneys who opt out of a case, he said, should consider the protection of a lien against any judgment or award the client may receive. |
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