Keefe, Campbell & Associates, LLC

We are very serious about our motto, “the only good file is a closed file.” We were recently asked by an adjuster how we close files as rapidly as we do. We want to let all of you know it is not possible to immediately close any given file, but you should look to defense counsel that has a clearly defined goal of as- rapid-as-possible claim closure in all litigated matters. We feel there is nothing good about claim files that sit and sit and sit.

Our overall approach in managing disputed litigated claims is what we call “transparent handling.” We don’t want to do anything that both the insurance carrier/TPA and the account aren’t fully aware of. This approach does not endear us to some of the adjusters in the industry who may want to adjust claims in private. We understand the adjusters have control over the selection of counsel and may not want us to copy their accounts so we will comply with their wishes if asked.

But many of our clients are major national companies and the money being spent is their money for the most part. We don’t want such risk and insurance managers to ever be surprised by anything. Therefore, when we write major reports or advise of any significant development, we copy both the adjuster and the account on the report.

Similarly, we feel all settlement negotiations should take place in totally transparent environment. Some of the partners at this firm have seen other defense attorneys get, for example, $100,000 in settlement authority. The defense attorney is told to get the major claim closed smoothly and efficiently. Rather than offer a reasonable sum, the attorney offers $18,000 to settle the case, knowing there is no chance this will actually settle it. In a “non-transparent” file, the client is then told Plaintiff’s counsel is unreasonable and won’t settle. The “sand-bagging” attorney then increases the low-ball offer to $22K and tells the client he/she has increased the offer and counsel for claimant still isn’t cooperative.

The problem this demonstrates is claims handlers and risk managers who defer responsibility for negotiations to the defense lawyers—some attorneys do everything they can to slow or impede the process to keep the file open and the fees running. Some don’t. We never, ever do.

KC&A attorneys prefer to not have the slightest worry about it. We negotiate in a transparent environment. If you give us $100K to close a file and want us to offer $100K, we draft an offer and put $100K on the table and copy you and your claims handlers. If you give us $100K and authorize us to get a better deal, we offer $70K and copy you on the offer. We then copy you on any response via email. If we later move the offer up to $80K, we copy you on the new amount and any response.

At some point, we may have to advise we have exhausted negotiations. At that point, we get the matter ready for hearing and try it. We know that sentence sounds strangely simple but we want this industry to understand in the state and federal courts and the Illinois Workers’ Compensation Commission, matters are set for hearing and tried every day. Your defense counsel may not want that to happen for a number of reasons but the most common reason our competitors sit and sit and sit on claims is they make money when they do so. They also have more reasons to call and maybe entertain you than we do because they have more claims and can justify doing so.

We also do not make the classic claims mistake of “asking our opponent for a demand” in an accepted claim. We feel this is a lazy and misguided way to negotiate. We feel the more optimal approach is to determine from our file and research what a valid and fair offer is—we ask you for authority and then put that amount on the table in a transparent setting. Once we have made a fair offer, the goal is to then let the hearing officer know we have made a valid offer and seek the assistance of the hearing officer to drive the matter to a rapid conclusion. We assure you most of the judges and arbitrators we appear in front of don’t want to hear boring cases and they will commonly drive the parties to a fair middle-ground. We salute the best adjudicators in the state and federal courts when they do so.

Please also remember if you are using in-house counsel assigned by your insurance carrier, they may or may not do any of these things. In many insurance settings, in-house counsels quietly make money for the insurance carriers and don’t necessarily have incentive to quickly and smoothly close files. The insurance carriers are happy to pass that cost along to you in the form of higher premiums.

We did have one risk manager recently tell us files some times come out better if you let them sit for years. If you want your defense files open for a long time, we assure you this is the wrong firm for you. We are aware that Plaintiffs some times leave the state or die or otherwise lose interest in their claims. But we think that claims approach is sort of like praying for rain or counting on the Death or Armageddon to bail you out. We don’t think it makes sense to hope for random events as an overall claims strategy—you are going to incur thousands in unnecessary attorney’s fees, unnecessary reserves and heightened claim exposure while praying for the sword to drop.

In summary, if you have old files that are gathering dust and making your defense attorneys lots of moolah, give us a call or reply. We don’t know any defense firm that closes files faster than we do. If you use a defense firm that closes files faster than we do, please let us know their “secrets” and we will be happy to learn from them.