Removing 10% Back
September 16, 2022
When Mighty launched a new service this summer to help people injured in an accident, we talked a lot about how our service sought to rewire the bad incentives for personal injury lawyers that hurt client outcomes. One of those bad incentives has to do with the fact that accident lawyers get paid a contingency fee on the gross settlement value and their clients get paid only out of the net, after medical costs, financing costs, case costs and other costs have been taken out.
Our initial idea of how to rewire that incentive was for Mighty Law to charge its legal fee based on the net settlement, not the gross. But, when we talked to injured people about it, it was confusing and arguably made us seem less trustworthy instead of more — because we had to explain complicated math.
We pivoted to an alternative solution to this specific incentive misalignment when Mighty Law lawyers agreed to refund part of their fee in order to give clients back 10% of medical costs, case costs, financing costs, and more. We validated this offering with ethics counsel and were excited about the incentive realignment.
After 100 days of conversations with new and prospective clients, we’ve learned that this iteration of our 10% back remains a headache to understand.
Effective on September 17, 2022, Mighty Law will be removing this benefit for future clients. Mighty and Mighty Law remain committed to rewiring bad incentives. In the coming months, we will be announcing some new initiatives in order to do this on top of ones that continue to exist today in our Code of Conduct.