Pareto’s Law

96 – Malorie Peacock – Building Your Profitable Law Firm

In this episode of the Trial Lawyer Nation podcast, Michael sits down with one of his favorite guests, his law partner Malorie Peacock, for an episode about the decisions they’ve made over the years to build and run a profitable law firm. 

“It’s a podcast about actually making money from practicing law.” – Michael Cowen

Michael and Malorie begin the episode with a look at where they started in 2014. Back then, the practice was general personal injury with a lot of small car wreck cases. That year was the first time they decided to stop taking non-commercial cases without a large insurance policy – a scary decision at first but has since proven to be very successful in branding Michael as a “big case lawyer” with referral partners. And because of this scary decision, Michael began meticulously tracking specific numbers to make sure the new strategy was working.  

Michael shares the main numbers he tracks and analyzes with his leadership team annually – the average case fee and the median case fee. He then breaks it down further by case type, referral source, lawyer assigned to, and more.  

Tracking each of these has shown that even though the firm is only accepting 1/3 of the cases they did before, the firm has grown significantly since 2014. This has helped fuel decisions from what kinds of cases they accept, to marketing, and when to hire more staff. 

“I didn’t dare to dream that we’d end up with the median or average fees we’re at now.” – Michael Cowen

Michael then reminds listeners that he’s been doing this for 20 years and being this picky about what cases he accepts is NOT something he could have done successfully when he first started. 

“If it doesn’t work, you can make other decisions. You don’t have to die on this hill.” – Malorie Peacock

He and Malorie then dive further into their “counterintuitive” approach to growth – to accept LESS cases but make MORE money – and the big and small decisions that were made to get them where they are today.  

The first big decision was that they would not accept any car crash case that did not involve a commercial vehicle or 18-wheeler, unless there was a “large” insurance policy, adding that the definition of “large” has been re-evaluated and changed many times since the decision was first made.  

Malorie then digs deeper into why re-evaluating your rules for case acceptance every year is so vital. Michael explains that you need to see if it’s working, and if it is working, decide if you should lean further in that direction or not.  

Another decision made was if it “doesn’t have wheels” and isn’t worth at least $1 million, they usually won’t take it. Michael shares why this one has been hard to stick to, but he and Malorie discuss why they need to be this picky, citing the lack of systems in place for these cases as well as the amount of research and work that needs to be put in to get the maximum value for the case.  

Malorie and Michael continue discussing some of the changes they’ve made, and some changes they decided not to make, and how they evaluate each item up for discussion. For example, they frequently discuss eliminating cases with low property damage, but for now have settled that they’ll take a low property damage case if it meets other criteria. This insightful and holistic approach is a must-hear for any listener who is looking to re-evaluate their approach to case acceptance. 

“You can’t fight a war on 3 fronts…If you have to fight on all 3 of those issues, it’s really tough to get a jury to go along with you on all 3 and still give you a lot of money.” – Michael Cowen

This leads Michael and Malorie to discuss the sunk cost fallacy once again, where you hesitate to pull out of a case once you’ve put money into it. Michael shares how he used to spend most of his time working on cases that didn’t make him any money, and how learning to let those cases go and withdraw when necessary has made him a much happier person and has actually caused his firm to make MORE money in the long run. These include cases where the client lied to you, or even cases where the facts just aren’t what you’d hoped they would be. 

Michael then shares a heartfelt story about his uncle, and how his death made Michael realize the importance of enjoying your life while you’re still here. Malorie adds that at the end of the day, a personal injury law firm is not a non-profit, and if you’re not making money, then you’re not doing it right.  

“We get one ride on this earth, and I want to choose to be happy and enjoy my time.” – Michael Cowen

They continue to discuss some of the smaller decisions made along the way, including the implementation of in-depth systems. Not only does this help the case resolve faster, but it also helps the lawyer focus less on meeting deadlines and more on in-depth research and complex legal work that can really maximize the value of the case. 

“Cases are not wine. They do not age well.” – Michael Cowen

Michael and Malorie begin to wrap up the episode with a look at docket size, which has lowered dramatically at their firm in the last 7 years. This has allowed them the time to implement those in-depth systems and end up getting 150-200% of the money they received 7 years ago on the same wreck with the same injuries.  

If you don’t have control over your docket, but you do have control over what you work on, Malorie recommends utilizing the 5-star case system. This system ranks your cases based on your projected fee and your win probability, and the goal should be to spend as much time as possible on the 5-star cases and as little time as possible on the 1-star cases.  

“Limiting docket size at the firm… counterintuitively… has made everybody happier, but also has made everybody more money.” – Malorie Peacock

The pair concludes the episode by emphasizing that the criteria and decisions discussed in this episode need to be discussed at least once every year, which they will be doing the week this podcast airs, and that the decisions you make need to work for your firm and your life.  

This podcast episode also covers saying “no” to cases, the Pareto principle, why Michael still accepts other personal injury cases, getting out of cases with “toxic” clients, the logic behind “from crash to cash in 12 months”, why you need to be ready for trial the first time you’re called, and so much more. 

31 – Malorie Peacock – Proven Techniques for Proving Damages

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In this Trial Lawyer Nation podcast, Michael Cowen sits down with Cowen | Rodriguez | Peacock partner, Malorie Peacock, to answer the questions of our listeners. This show focuses on how to prove your client’s harms and losses at trial.

The first listener question is regarding the idea of whether 3X the medical bills is typically what you use to determine damages or does that only apply in certain cases? Michael recalls being taught the 3X “rule of thumb” back when he was first starting as a trial lawyer, but since then, no longer does for several reasons. First and foremost, times have changed along with insurance company practices. If an insurance company or defense attorney does start to talk to you about 3X medical bills, it’s likely because your case is worth a lot more than that. Instead, Michael focuses on what a jury might do when they look at each element of damage (pain, mental anguish, impairment, or whatever the measure of damage is in a particular state) individually and determine what they feel compelled to put in each blank. That, paired with what Michael calls “piss off factors” based on things the defense might do to compel a juror to give full justice for, becomes a number he’d like to keep as high as possible. Of course, he also takes into account whether his client is for some reason not likable or the defense is super likable, which can also affect the jury’s motivation in an adverse way for his case. Malorie also brings up another important note on the effects of jurors taking into consideration the percentage of fault even though they are instructed not to do so. To which Michael elaborates a little more on how to potentially work the messaging of that to the jury.

The next question by our listeners is how do you work up damages, especially in a smaller case that doesn’t warrant bringing in experts or producing lots of exhibits? Michael starts to answer this question by clarifying that experts generally do not help work up damages, but rather help to prove calculations on future medical expenses or a vocational loss. Having said that, with regard to the human and non-economic damages, he believes people who come in and talk about your client, how they were before, what they went through, and what they are like now can have the biggest impact. This also doesn’t cost any money toward the case. It does, however, take a lot of time in order to visit with these people to talk through what they know of the client before, during, and after, as well as collect photos or videos showing the client in a different state prior to suffering damages, etc. Michael discusses how this approach, even by taking the time to meet with people and learning your client’s story better, will make you more authentic in the courtroom which can have a profound impact on your case. Malorie sums this point up reminding us that all of our clients are more than just their injuries.

The next question they explore is regarding a wrongful death case without economic damages, which Malorie takes the reins on and starts with conveying just how hard it is to put a number on life when no amount of money will ever replace someone’s loved one. She goes on to elaborate that although you can do focus groups, they are not truly predictive. It will always boil down to the 12 jurors you get on any specific day in court who will ultimately put that number on a case. Michael adds that liability is what really tends to drive the number in wrongful death cases and it sometimes becomes very hard to have a conversation with the surviving family member(s) on the difference in the value of life versus the value of a case. He also shares how going to trial in a death case is extremely tough for the family as they relive one of the most painful events in their lives, which places a real responsibility on us as lawyers to make sure we are doing the right thing. Whether that means turning down an offer that is not sufficient to go to trial to fight for more and making an informed choice while understanding upfront the process and pain that will likely come with going through the details all over again. Malorie also describes the importance of knowing your client (a common theme throughout this episode) and understanding their goals, hopes, and struggles for their future to be able to help guide them through the conversation about money.

Proving grief is another topic Michael and Malorie explore with the belief from some jurors that everyone dies at some point. They both agree that there is a definite difference between dying when it’s time and dying when it’s not your time because of a tragic incident. Michael also points out the balancing act that occurs when you don’t want to “torture” your client and make them cry by bringing up all the pain and suffering they encounter now that their loved one is no longer here vs. focusing on the hopes that were and the plans for the future that have now changed because of the actions of someone else. He also points out that this is a good time to utilize experts like grief counselors and let them talk about the pain and suffering your client is, and will, experience due to the loss as well as the grieving process and the natural cycle of grieving to help paint an appropriate picture for the jury. They also give several other examples of ways to express the pain and loss without having to pull tears out of the surviving family members directly.

Michael and Malorie continue their abundance mentality by sharing so much great information in this episode on topics like when to submit and when not to submit a medical bill toward damages; avoiding the status quo and navigating a case to motivate a jury to give your client the justice they deserve; where do your client’s harms and losses fit into the greater story of the trial; an ideal “3 act” trial story through the juror’s eyes; how not to present your client’s harms and losses in a vacuum; how to get your client’s actual story (hint – it’s not what you might think); tips on utilizing psychodramatic methods; expediting the process of spending time with your client to understand their story; how Pareto’s Law can be applied to your docket; and so much more.

These Table Talk podcasts could not happen without the interaction and questions that are submitted by our listeners. We are eternally grateful for and encourage you to continue to send us your thoughts, ideas, and questions as we love sharing our experiences with all of you.

“Please note the TLN19 discount code mentioned in this show has now expired.”

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