$1,000,000.00 policy limits apportioned:

This case came to me from counsel who represented the driver and three (3) passengers in a significant motor vehicle accident. All four (4) claimants sustained serious injuries including spinal fractures, rib fractures, liver lacerations, and collapsed lungs. One claimant required a total hip arthroplasty while another claimant sustained a fractured ankle which required open reduction and internal fixation. Yet another claimant sustained bilateral hip fractures but did not require surgery. All claimants sustained wage loss. All claimants had significant medical bills. The insurance carrier for the tortfeasor “tendered” the full policy limits but left apportionment to counsel. In doing so, a potential “conflict of interest” arose in than any recommendation by counsel for apportionment may render the clients’ interests “adverse” to each other and to counsel. See, Pennsylvania Rule of Professional Conduct 1.7 “Conflict of Interest: Current Clients.” To resolve the conflict, all claimants agreed to submit the entire universe of injuries to me for binding apportionment. After review, I was able to apportion the entire settlement proceeds to all claimants in what I determined was fair under the circumstances. This scenario is very common in the practice and counsel should be aware of the potential conflict of interest. Apportioning the proceeds in a manner such as this, where counsel represents multiple parties, insulates counsel from any claims of malfeasance and conflicts of interest.