Are some Texas public adjusters criminally and unethically running for some lawyers in Texas? This was the accusation made by an insurance company defense firm in Keeping Pace With Texas Hail Claim ‘Case-Runners’.
The post noted:
There are likely a number of converging factors. But, one that deserves its fair share of the credit is the practice of “case-running” by public adjusters and other third parties involving themselves in the property insurance claim process. In short, case-running is the practice of seeking out, soliciting and referring policyholders with potential, albeit often questionable, property insurance claims to policyholder attorneys with the expectation of being compensated when the resulting litigation concludes.
While there is no proof of this activity provided in the post, I agree that the practice is ongoing in Texas. Our firm has been asked by public adjusters, and we declined, to pay fees or money for referrals of cases. We were told other law firms in Texas do this. We explained that such activities are criminal and that people doing it could expect to go to jail and lose their licenses. We implored the public adjusters to stop–I do not think they listened.
The description given to us of how it works is similar to the quote above. Some public adjusters told us that the lawyers doing this pay them a ”consulting fee.” This is merely a name change and does not change the transaction from being a criminal one where an agreement to pay consideration for a case.
I am certain that the vast majority of public adjusters do not do this. I am certain that the vast majority of attorneys do not do this. At the last TAPIA meeting, I publicly predicted that some of those people doing this would be prosecuted for it. Time will tell.
Positive Thought for the Day:
“You earn your reputation by the things you do every day.”
– Dave Thomas
