With few new cases reaching their offices amid stay-at-home orders and mandated lockdowns, Connecticut personal injury attorneys expect a significant drop in income, according to new data from a national survey.

ALM Media, whose publications include Law.com and the Connecticut Law Tribune, conducted a nationwide survey between April 1 and 23. It asked attorneys how the coronavirus outbreak has impacted their income, how their new-case volume has changed, and what is happening with potential new clients seeking representation. There were 24 Connecticut attorneys out of 292 total respondents.

Of the Connecticut attorneys, 58% reported they'd already seen a decrease in income due to COVID-19, while 33% said their income had stayed the same.

For Stewart M. Casper, a partner at Casper & de Toledo in Stamford, three recent cases he has been litigating have just brought in "substantial fees." But with courthouses closed, a key revenue driver for Casper's personal injury practice is the pressure that the offer-of-compromise statute puts on insurance companies to settle.

"When it is not paid, the interest rate runs at 8%, and that could be retroactive to the filing of the lawsuit," Casper said. "It becomes a business decision at some point for the insurance companies. That's why the offer-of-compromise statute that we have needs to be used, and needs to be used aggressively to disincentivize stonewalling."

The pandemic has led to economic hardships as unemployment climbed across the United States. As for Casper, "this is year is going to be a good year," thanks to recent case recoveries.

But most lawyers who took part in the survey did not share his view.

|

'You have to be resilient'

Of the Connecticut respondents, 63% are projecting decreased income in the future, while only 8% thought their income would remain the same.

When ALM asked them to quantify how much they felt they would lose in the future, 18% said they expected a 21% to 30% income drop. A plurality—about 35%—were bracing to lose between 11% and 20%, while about 18% expected their income to drop 10% or less.

The numbers confirm a sobering reality for Christina Hanna, a shareholder at BerkowitzHanna in Shelton, who has heard similar projections from colleagues at large and small firms, as well as solo offices within the state.

In her own practice, Hanna says she has seen a drop-off in new personal injury cases—as most of America is sheltered indoors—which will have an adverse effect on her income.

Although Hanna is receiving some new calls from potential clients, she is worried that cases before the coronavirus outbreak will soon be resolved, and a prolonged slowdown in new personal injury cases may meaningfully decrease her future revenue streams. As a result, she said she and other attorneys are exploring new types of claims.

"We're looking for any COVID-exposure cases, issues in the workplace or malpractice claims," Hanna said. "So that could be a new area developing. You have to be resilient. We are in this for the long haul, no matter what."

Read more: