Turning the Tables: Doctors Sue Lawyers Over Letters of Protection

Article by: John Council

Texas Lawyer

April 04, 2011


Bill Voss LOP Enforcer

Bill Voss, of Houston's Voss Law Firm

Image: John Everett

It used to be that plaintiffs lawyers were the ones representing clients who sued doctors in Texas. Now, some doctors are turning the tables, hiring lawyers to sue other plaintiffs attorneys when the doctors' medical invoices allegedly aren't paid. Such breach-of-contract litigation usually involves what is known as a "letter of protection" — an agreement between a plaintiff's lawyer and a health-care provider. The doctor or clinic agrees to forgo payment from an injured client until the client's suit is resolved favorably. The plaintiff's lawyer agrees to pay the doctor or clinic from the settlement or jury verdict proceeds.

Three plaintiffs lawyers say letters of protection are designed to protect a doctor's payment in exchange for providing medical treatment to clients who often do not have health insurance. Bill Voss, of Houston's Voss Law Firm, sues plaintiffs lawyers who allegedly fail to honor their letters of protection. Voss, who uses letters of protection himself, says, "I personally started getting calls from doctors who I did business with who said, 'Can you help me? They were good people. And word is getting around that we do this. I'm getting calls from around the state and around the country."

Four years after he started getting those calls, Voss says he and his firm now represent more than 50 doctors and clinics pursuing plaintiffs lawyers who allegedly do not honor their letters of protection.

"It goes on more than I'd like to imagine. I do not enjoy going after a lawyer one bit," Voss says. "My clients have put up their end of the bargain, and they haven't asked for payment until the case is resolved. We want the lawyers to hold up their end of the bargain." Voss says the majority of the letter-of-protection matters he handles are resolved before filing a suit. But if a lawyer doesn't respond to his requests for information or payment, he files a petition in state district court on behalf of his medical clients. "We do this the nice way at first. We write letters, we send faxes and if you don't respond, we have no other option other than to file a lawsuit," Voss says. "It's rare that we run across a lawyer that doesn't want to communicate," he says. "And it all boils down to communication and transparency."

But on March 11, Voss did file a petition in Dallas state district court on behalf of a clinic. In Patients Choice Medical and Rehabilitation v. Cary Schulman Law Firm, et al. , the clinic alleges that the Cary Schulman Law Firm failed to pay $42,833 for medical treatments. "Plaintiff patiently awaited payment from Defendants for the services provided and yet never received payment," the clinic alleges. "Plaintiff contacted Defendants on several occasions regarding payment and still has not received reimbursement for their services." The defendants also used the clients' medical bills "to demand, negotiate, and obtain settlement," as alleged in the petition. [See the petition.]

But Cary Schulman says there are several explanations for the alleged nonpayment. He stopped representing at least two of the clients who are listed in an exhibit attached to the petition as owing Patients Choice money, and under the terms of his letters of protection with the clinic, he is not responsible to pay for the treatment of clients he does not represent or for whom he makes no financial recovery, he says. Schulman also says his case files became "discombobulated" after the departure of several support staffers.

"It's not as simple as 'you didn't pay me, you cheated me,' " Schulman says. "What I know from my investigation, more than two or three of those clients were dropped. And I'm investigating the rest. If my office dropped the ball somewhere, then I'm obligated and I'll pay it."

Letter of the Law

Jeff Rasansky, of Dallas' Rasansky Law Firm, says his firm uses letters of protection in limited circumstances. "It's often our preference for a client to choose his or her own doctor and pay for the services like everybody else," Rasansky says. "It's easy cross-examination fodder to tag a doctor by saying payment for his services is dependent on his testimony." But he makes sure he tells his plaintiff-clients that if he doesn't recover money for them, they are obligated to pay for their own medical services.

"If the lawyer sends a letter of protection that we will pay you out of settlement proceeds, it becomes the lawyer's obligation. But, on the other hand, if there is no settlement or the case is a loser for whatever reason, it becomes the client's obligation," Rasansky says of his agreements. "Our letters of protection specifically state in the event of a recovery, we will ensure the payment of your services. But if there is no recovery, they can't look to the lawyers for recovery."

Andy Sommerman is a partner in Dallas' Sommerman & Quesada who also occasionally uses letters of protection when clients don't have health insurance. He suggests trying to negotiate the rates doctors charge in the agreement, if possible. Sommerman acknowledges that not every doctor or clinic will treat a client-patient under a letter of protection, so there isn't a lot of room for the lawyer to negotiate.

"These health-care providers are a godsend to plaintiffs, because a lot of these people don't have health-care coverage," Sommerman says. "So, as a result, the health-care provider provides the service in advance of being paid on the good faith that the case is worth it and, two, that the attorney will make sure that they get paid."





The Voss Law Firm, P.C.
The Voss Law Center
26619 Interstate 45 South
The Woodlands, TX 77380

Phone: 281-VICTORY
Toll free: 1-866-276-6179 
Fax: 713-861-0021


The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve all Texas counties and cities including but not limited to the following: Harris County, Montgomery County, Jefferson County, Houston, The Woodlands, Beaumont, El Paso, San Antonio, Austin, Sugar Land, Dallas, Fort Worth, Orange, and Port Arthur, as well as companies and individuals along the Gulf Coast and around the globe.

 



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