If your firm already employs an in-house or outside investigator, you may want to evaluate him or her based on certain key issues. Remember that malpractice as it relates to PIs under your firm's direction or locus of control can come back to haunt you later. Consider the following important issues when working with any PI firm:
- Is the firm licensed by your state? Insured with proper malpractice and other business insurance related to what its investigators do? Private investigators' licenses work differently in each state, but no matter what the rules and regulations are for the individual PI, each PI firm you do business with should be licensed and insured.
In some states, each person must have a license to be considered a "private investigator," while in others, employees may work under a "manager's" license while they earn enough hours to qualify for their own licenses.
Make sure the firm you choose is licensed. Ask for its state license number and spend some time verifying it as accurate. A small amount of research can save your firm from embarrassing moments on the witness stand, as when opposing counsel asks your investigator, "By the way, are you licensed in this state?" and hears a sheepish "no" as a reply, This can damage your credibility, ruin your firm's reputation, and kill a perfectly good case for your client.
Further, unlicensed Pis are usually uninsured as well, and this could bring financial ruin down on you should they commit malpractice while under your direction.
- What is the firm's reputation within the PI community? The legal community? With the local police? Some PI firms have a sterling reputation amongst their peers, other attorneys, and even local law enforcement agencies. They work in a timely, professional, and ethical manner, leaving no stone unturned to get the job done, but always in a legal way. They have grudging respect from fellow Pis for their skills (and ability to get and keep new clients), high praise from their attorney clients for their case-saving work, and good grades from local law enforcement authorities for not interfering in ongoing felony cases (which is against the law in many states) or for offering to share information they've collected with the police.
- How long has the firm been in business? Studies of small businesses show that it usually takes from three to five years for any small business to get its feet firmly planted on the ground. After this point, most of the learning process is over, the employee and workload problems have been ironed out, and the business is strong enough to survive.
PI firms offer no exception to this rule. While newer firms may offer low rates and seem eager for your business, they may have some behind-the-scenes problems you don't know about. Smaller, newer PI firms tend to live "on the edge," cashing attorneys' checks at the bank as fast as they get them. They also may have an air of desperation about them because money may be tight. While they may provide good service in their eagerness to keep you as a client, money concerns may cloud their judgment.
For best results, choose a well-established firm that specializes in your types of cases. It has probably earned its experience with other smaller law firms and has moved up to a more powerful clientele.
- What is the background and experience of the Pis on staff? Law enforcement, insurance, engineering? Some Pis specialize in specific subjects. Their law enforcement backgrounds may have taught them criminal investigation techniques, auto crash analysis methods, or financial searching skills.
Other Pis may have worked as adjusters for large insurance companies and then have gone out on their own to start their businesses. They may have tremendous experience with car crash cases; worker's compensation settlements; medical, legal, or professional malpractice cases; or a variety of other insurance-based claims. Their expertise could be highly valuable as an aid to settlement.
- What specific training do staff investigators have? Be ready to read their resumes-also called their "curriculum vitae"-to get an idea of their education, training, work experience, and work history. Some Pis will stress law enforcement credentials, while others will highlight their graduate engineering degrees.
Others may have worked in similar investigative-type positions for the federal government, e.g., airplane crash experts, rail car crash investigators, Food and Drug Administration inspectors, etc.
Some firms may offer themselves as full-service investigators, with a staff of several people with differing skills and talents.
- What kinds of services can the PI firm offer your firm? Here's a short list of some things a full-service PI firm will provide for you: background checks, asset searches, criminal investigations, civil investigations, accident reconstruction, family law case investigations, skip traces and locates, surveillance with photos or video, financial crime investigations, worker's compensation investigations, and polygraph work.
The best way to get high-quality reports is to choose certified experts in their field. Ask what each PI is qualified to do and choose from there,
- What is the fee structure? Billing minimums? Payment terms? Don't settle for second-rate investigators. Good help is not cheap, but even higher-than-average costs can be cost-effective if the efforts lead to a better success rate for you.
Most investigators charge by the hour, usually $25 to $100, plus expenses. Some Pis work on a monthly retainer system, with whatever money is not used credited to the next month. Most work on a case-by-case basis, setting fixed prices for records checks, interviews, photos, etc.
It's a good idea to create a letter of agreement about payment terms in advance of any work. Spell out exactly what you expect in terms of material from the PI and when and how you will pay the bills. A PI will typically collect from attorney clients on a bi-weekly or month's-end basis, turning in each report as he or she completes it, with a complete invoice explaining the time, fees, and expenses,
- Does the firm offer references? Testimonials? Samples of past work? Talk to other attorneys and paralegals about their Pis and look for a glowing recommendation. Get some sample reports, photos, diagrams, models, etc. from the PI to review with your attorneys. Ask representatives from the firm to talk about the last time they testified in court and the results of their testimony. Get a feel for what they do, how competent they've been in the past, and how much they charge before you give them any work. Good PI firms will stand up to close scrutiny. Shady firms won't and shouldn't get your business anyway.
These so-called shortcuts can mean problems later, especially when you discover that the PI you hired to take a witness statement typed up a half-baked version of what the witness saw, forged the witness's signature, and turned it in as a bona fide document to go into the client's case file.
When you go to bring this PI in for a deposition or a hearing, he has either skipped town, forgotten where he put the file, or worse, will lie under oath, all for his hourly fee. Just as there are horror stories surrounding unscrupulous lawyers, you'll find an equal number of stories about shoddy, crooked, or just plain ignorant Pis who try to pass themselves off as professionals. Good Pis know there is no easy road to the truth; conscientious PIs may be willing to put in nights and weekends to find out all they can for you.
