About 95% of all litigated workers compensation cases in Michigan end up with a one time, lump sum, tax free settlement. This is all Michigan workers compensation cases whether they are denied from the onset, or whether they are paid voluntarily for a portion of time by the worker comp insurance company. Often the comp case is settled in Michigan while benefits are still being paid by the insurance company. The top reasons the Michigan workers compensation case is settled in a one time, lump sum, tax free settlement is as follows:
1.) The Michigan workers compensation carrier makes your life miserable with red tape, hoops to jump through, and they often hire a private investigator to see how much activity the injured workers is engaging in. The insurance company sends you to IME doctors who indicate that little or no medical treatment is needed for your injury. They refuse to allow you to see doctors of your own choosing and or they indicate that they will not pay for “your” doctors. The insurance adjusters are professionals at being rude on the phone and treating the injured worker like they did something wrong;
2.) Benefits were paid and cut off and now the insurance company does not want to take the risk of going to trial. They know the workers was injured, but they find an IME doctor to state that the condition is not work related or that it is not disabling. Once we prepare the case for trial, the insurance company usually wants to settle out of court.
3.) Benefits continue to be paid, because even the IME doctor hired by the insurance company will not release the injured worker to work. At this point the insurance company usually offers to settle the case, but they encourage you to do so without an attorney. They claim it will cost you one third of your settlement. Of course, this too is untrue. If benefits are being paid and you hire a Michigan workers compensation attorney for settlement purposes, the Michigan workers compensation attorney fee is only 10%.