What happens if two law firms claim to represent me for the same car accident?

Why Two Representation Claims Create a Problem

A law firm commonly notifies an insurance company of its involvement by sending a letter of representation. The letter may direct the insurer to communicate with the firm rather than contacting the injured person directly.

If a second firm later sends its own letter or requests claim information, the insurer may receive conflicting instructions. It may be unclear which firm can request records, discuss the claim, negotiate a settlement, or receive a settlement check. The insurer may therefore ask for written confirmation from you before proceeding.

A representation letter is important, but it does not by itself resolve every issue between you and the firms. The signed fee agreements, the scope of each agreement, your communications with each firm, and any work already performed may all matter.

Choose Your Law Firm and Confirm the Decision in Writing

Clients generally control who represents them. If you want only one firm handling the car accident claim, clearly identify that firm and notify both firms in writing. A brief written notice can reduce misunderstandings about whether a prior attorney-client relationship has ended.

Your notice should ordinarily include:

• Your name and the date of the accident.
• The insurance claim number, if available.
• The name of the firm you authorize to continue representing you.
• A clear statement that the other firm is no longer authorized to act for you.
• A request that your file be transferred as appropriate.
• A request for written confirmation that the change has been processed.

You should also make sure the insurer receives consistent written instructions. It is often helpful for the selected firm to send a new letter confirming its authority and identifying where future communications should go.

If you truly intend for both firms to work together, that arrangement should be clearly discussed and documented. North Carolina professional-conduct rules generally require the client to agree in writing to an appropriate division of fees between separate firms. Two firms should not independently handle the same claim without a clear understanding of their responsibilities and the total fee arrangement.

Review Both Fee Agreements Before Making a Change

Do not assume that signing a second agreement automatically cancels the first one. Read both contracts and gather any emails, text messages, electronic signature records, or letters explaining what you agreed to.

Look for provisions addressing:

• The exact claim or services covered by the agreement.
• How either side may end the attorney-client relationship.
• Responsibility for case expenses.
• What happens if the firm is discharged before the claim ends.
• Whether the firm may seek payment for work already performed.
• How a fee disagreement will be handled.

A former firm may assert that it is entitled to reasonable compensation for substantial work performed before discharge. That does not necessarily create an automatic claim against the accident recovery, and it does not automatically entitle two firms to collect two full contingency fees. The wording of the contracts, the work completed, the reason for the change, and North Carolina law may affect the issue.

What Happens if the Firms Disagree About Fees?

A fee disagreement is separate from deciding who will represent you going forward. The firms may be able to resolve the issue between themselves, but any division of fees must comply with applicable rules and should not increase the total fee beyond what is reasonable.

If settlement funds are later received and part of the attorney’s fee is genuinely disputed, the disputed portion may need to remain in a lawyer’s trust account until the disagreement is resolved. The undisputed portion should be handled according to the applicable trust-account requirements. North Carolina lawyers also have obligations concerning notice of the State Bar’s fee-dispute process when a client contests a fee.

Before settlement funds are distributed, the client should receive an explanation of the proposed disbursements. Do not sign a settlement statement or release that you do not understand. Ask for a written breakdown of attorney fees, case expenses, medical claims, and the amount proposed for the client.

Protect the Car Accident Claim While Representation Is Clarified

Sorting out representation should not cause you to lose track of the underlying injury claim. While the issue is being resolved, preserve:

• Both signed representation or contingency-fee agreements.
• Letters sent by either firm to the insurer.
• Emails, text messages, and notes of conversations with each firm.
• The insurer’s claim number and adjuster communications.
• The crash report, photographs, witness information, and vehicle records.
• Medical bills, visit summaries, and records connected to the accident.
• Documents showing lost income or other accident-related expenses.
• Any settlement offer, release, check, or proposed closing statement.

Ask the firm you select to confirm who is responsible for immediate tasks, including preserving evidence, communicating with the insurer, collecting records, and monitoring deadlines. Do not assume that one firm is handling a task merely because you previously spoke with someone there.

Changing Firms Does Not Stop North Carolina Deadlines

Many North Carolina personal injury actions are subject to a three-year filing period under N.C. Gen. Stat. § 1-52, although the correct deadline depends on the claim and its facts. Communications with insurers or negotiations between law firms do not automatically extend the time for filing a lawsuit.

If a lawsuit has already been filed, changing counsel may also require notices, a substitution of counsel, or court permission for an attorney to withdraw. The selected firm should confirm the case status, pending court dates, discovery obligations, and filing deadlines.

How This Applies to the Two-Firm Situation

Here, one firm had already sent the insurer a representation letter when another firm requested claim information. The insurer’s need to clarify the representation is understandable because it should not take conflicting directions about a single injury claim.

The injured person should determine whether two fee agreements were actually signed, identify which firm they want to continue with, and communicate that choice in writing. The selected firm can then confirm its authority with the insurer and coordinate transfer of the file. Any question about fees for work already completed should be addressed separately rather than left unresolved until a settlement is ready for distribution.