In the legal agreement it states whether or not they withdrawal, I am still obligated to pay costs or fees at that point. In the agreement it doesn't state hours put in or anything per hour... So pretty much they are screwing me over? I will still have to pay them 40% since they filed the lawsuit....

So you do not think it is possible I can get the worker's comp insurer to even lessen by $5000 and the at-fault insurance to raise $5000 if I was willing to settle the matter? This case has been going on now at almost 2 years and if I go to court, the likely of winning from what the law firm "advised" is not good. Therefore, the worker's comp insurer would have a better incentive to lower subrogation in order for me to accept a settlement offer? I would also need to negotiate with the at-fault insurance to just increase it by only $5000 as if go to trial, it would be more money & expenses + more time carrying out this case... What would be my best advice? Should I speak with the law firm and see if they would be willing to take 30% (this is what they were willing to accept before withdrawal)?