If you’re just about to settle your case (or if you already have) you’re probably wondering when you’ll actually be paid. The typical lawyer answer is “it depends,” which is true, but I’m going to tell you what “it” depends on, and how long “it” usually takes. There are delays which happen before your attorney gets the settlement check and delays which happen after your attorney gets the settlement check. Some of these are unavoidable, but some are not — and some can be mitigated.
Getting Paid After Settlement — Delays Getting the Check From the Insurer
The first delay you will likely encounter in getting paid after your settlement is the time it takes the defendant’s insurer to issue the settlement check. Florida has a specific statute addressing this issue, Fla.Stat. §627.4265, which reads as follows:
In any case in which a person and an insurer have agreed in writing to the settlement of a claim, the insurer shall tender payment according to the terms of the agreement no later than 20 days after such settlement is reached. The tender of payment may be conditioned upon execution by such person of a release mutually agreeable to the insurer and the claimant, but if the payment is not tendered within 20 days, or such other date as the agreement may provide, it shall bear interest at a rate of 12 percent per year from the date of the agreement; however, if the tender of payment is conditioned upon the execution of a release, the interest shall not begin to accrue until the executed release is tendered to the insurer.
This sounds great in theory: if the insurer doesn’t pay up within 20 days of settlement, they have to add substantial interest to the settlement. However, did you spot the two loopholes in this statute? First, the agreement must be in writing. This is a relatively minor loophole, as most attorneys know enough to reduce an oral settlement agreement to writing (through letters confirming the agreement, usually). The second loophole, however, is more problematic. It states that if the insurer requires a release as part of the settlement — which they all do — interest won’t begin to accrue until the executed release is tendered to the insurer. Here’s where problems arise. How much time does the defense attorney or insurance company have to send you a release? No deadline is mentioned. If changes need to be made to the release, how long do they have to accept or reject those changes? Again, no deadline. Conditioning the accrual of interest on the execution of a release allows for needless delays while the insurer drags its feet drafting an acceptable release. So, what is a plaintiff to do?
Whether or not your state has a statute like Florida’s, it would be a good idea to include a deadline for the delivery of an acceptable release in your settlement agreement. You could agree that the defendant shall issue you an initial proposed release within 5 business days of the settlement, with the final version being agreed upon no later than 7 business days thereafter (otherwise the settlement is void). This way, you can be sure that the insurer will issue your check within 20 days of settlement. If you sense that your case is getting close to settling, you may want to suggest this to your lawyer. If your state doesn’t have a statutory deadline for issuing the check, you can make that deadline part of the agreement as well. I have had cases where the insurer offered to expedite the check (payment within 24-48 hours) just to sweeten the pot. A little forethought before you agree to a settlement can save you needless delays afterwards.
Getting Paid After Settlement — Delays After Your Lawyer Gets the Settlement Check
There is one large and unavoidable delay you (and your lawyer) have to deal with after her receives the settlement check. It must be deposited into and clear his “trust account” before he can pay you. Trust accounts are required by state bar associations, and the interest which accrues on deposits in trust accounts usually goes towards legal aid services for the poor — it definitely does not go to your lawyer. Your lawyer wants your check to clear his trust account just as badly as you do, as he does not get paid until it clears, either. Settlement checks can take 10 business days to clear some trust accounts, unless they are issued by the same bank as the trust account, or if they are cashier’s checks (which is extremely rare). This is one delay you’re just going to have to endure. Ask your attorney’s office manager how long checks take to clear their trust account to get a more precise estimate of the delay.
Another delay which comes up after your lawyer gets the settlement check is the payment of your medical and insurance liens. There can be delays in doctors and insurers sending “final balance due” statements (although hopefully you had a good idea of what was owed before you settled). If Medicare or Medicaid paid any of your medical bills, they can be notoriously slow in delivering final balance statements.
There can also be delays as your lawyer attempts to negotiate the settlement of these liens and bills (yes, you can often pay less than is owed) so you get more money. If the full amount of your liens and bills exceeds your portion of the settlement (after attorney’s fees and costs), your lawyer will have to finish these negotiations with your lienholders before you get paid anything. If the full amount of your liens and medical bills is clearly less than your portion of the settlement, I suggest that you ask your lawyer for a “partial distribution” from his trust account (after the check clears, of course). When a lawyer makes a partial distribution, he holds an amount which would clearly cover all outstanding liens in his trust account and pays you the balance of your portion of the settlement. If he negotiates the liens down afterward, he pays you the rest in a second distribution. Here are two examples to illustrate:
- Example One: Jim settles his car accident case for policy limits of $10,000.00. His total outstanding medical liens are $6,500.00. In this case, Jim couldn’t get a partial distribution because his portion of the settlement, assuming a 40% attorney fee, is $6,000.00 — less than the full amount of his medical bills. Jim will have to wait until his lawyer negotiates his medical bills down before being paid anything.
- Example Two: Jill settles her car accident case for $100,000.00. Her outstanding medical liens are $20,000.00. Again assuming a 40% attorney fee (I’m omitting the attorney’s costs for simplicity), Jill could ask her lawyer for a partial distribution of $40,000.00 ($60,000.00 client portion minus $20,000.00 in liens) and then later receive another distribution of the balance after her liens are negotiated down.
These are the most common delays in getting paid after settlement. However, there are always unusual circumstances, such as bankruptcy, divorce, and even sometimes problems with the defendant’s check clearing, which can affect your settlement. If you are experiencing unusual delays in getting paid beyond those I’ve described, you should address them with your lawyer. For the usual delays, you’ll just have to be patient.
I agreed to a settlement on 9/20/2011, and I signed the settlement papers 10/13/2011. The state arbitrator recieved the settlement papers on 10/21/2011. How long until I recieve a check?
Without knowing what state you’re in, the nature of the claim and whether it was it against a private or governmental defendant, I could only speculate. 30 days is a standard turn-around time to get a settlement check, but other factors can come into play. For example, some government agencies only cut settlement checks once or twice a month. So if you miss the date in the current month, you must wait until the following month for it to cut your check. Using your case as an example, if settlement checks are cut on the 20th of every month, your check wouldn’t be cut until 11/20/11.
The only truly safe way to know when you’ll be paid is to make the payment date part of your settlement (e.g., defendant will pay by “X” date or within 20 days of receiving the signed settlement agreement).
Our lawyer (who we can only reach on Friday’s – if we are lucky) said through his legal assistant that the settlement check is “on the judge’s desk.”
What does this mean? Does this mean we will have to wait for one of the days the judge signs settlement checks?
We signed papers in September and then somewhere along the lines, they finally got to the judges desk in October.
There was a stipulation of late fees and interest – is there any hope of these actually being paid (this is in writing – but the dates of when and where and who did what when are all over the place).
We apparently chose the Settlement Settle-King of Southern California.
We thought that this would all be over in September when my wife with to the courthouse for a day with our newborn- didn’t go into the courtroom – and was told by the lawyer that this is what they are only willing to give us because of x, y, & z. The reasons were kind of lame and seemed like he wasn’t as interested in my wife’s case as he was just settling. This was in September and it is now approaching December.
Is this normal? Do you think we chose a lousy lawyer? What is the check doing on the judges desk … for so long – doesn’t he realize that it is money that people could be using to support their families?!?!
Any helpful information or guidance would be much appreciated.
Is this a workers’ comp case? Most personal injury cases don’t require judicial approval of settlements, but workers’ comp cases do. If you are stuck waiting on judicial approval, there’s not a whole lot that can be done to prompt a lazy judge to sign an order. Basically, your lawyer can pester the judge’s judicial assistant (JA), but if he does it too often, he may piss the judge off (who then may drag his heels on purpose). It’s not that the judge has to sign the check — he has to enter an order approving the settlement. Usually this is a ministerial function and shouldn’t hold you up for longer than a month.
If this is a normal personal injury case (car accident or slip & fall) I have no idea why it would require a judge’s approval (usually this is only needed for certain settlements involving minor children). Have you tried checking your court clerk’s website to look at the docket for your case (some are free, some are not)? It should list the last thing filed (and the date of filing), so you can see if (or when) your settlement documents were filed and whether any action has been taken on them. If your clerk doesn’t have this information online, you should be able to check in person at his office.
With respect to late fees and interest, these may not be applicable if the judge is responsible for the delay in payment. If judicial approval is required, any sane insurer will wait for that approval before cutting a check.
I can’t really comment on your lawyer’s performance or his suggestion to settle for the amount offered. I don’t have all the information he had and it would just be inappropriate. Of course, if your wife already signed off on the settlement, it’s a little late now to get a second opinion. If you’re in need of this settlement money now, it may have been a better move to take a lower settlement rather than to wait for a trial in the hopes of getting more. Only you and your lawyer will know that.
I signed my settlement papers on Nov 28th with a Utica mohawk clause in it, I also have open medical for life. I did receive a $ amount with this settlement, I was just wondering how long it will take too receive the check? I signed on Nov 28th and as of Yesterday Dec 13th the Stip still had not been signed by Judge. So what could be going on with that? I am in the state of Missouri..
First, my usual disclaimer: I am not, nor have I ever been, a workers’ comp lawyer. Nor am I a Missouri lawyer. That being said, different courts and different judges move at different speeds. Even though both parties agreed to the settlement, workers comp judges still need to review and approve them. Some are slower than others at getting around to that. I have had stipulations sit in a judge’s chambers for months before an order on them was signed (in personal injury cases, not comp). I hope your judge is more efficient than that.
There’s not a whole lot you or your lawyer can do to speed up the judge signing off on your stipulation. A friendly reminder call to his judicial assistant (by your lawyer’s office, not you) might help. More than one call like this may get your stip moved to the bottom of the judge’s in box, so discretion should be used. If it takes more than 30 days to get this signed, and you don’t have a lawyer, a very polite call to the judge’s office to “check the status of the stip” may prompt some action.
If you have a comp lawyer, he’ll know far better than I do how fast thing move in your local court. If you don’t have a lawyer, you could take a shot at calling a local comp firm or two to see if they will answer one or two questions for you (How long does it typically take a judge to sign a stip? and How long after that before you should expect your check?). They may answer you just to generate some goodwill (and possibly have you refer your friends to them in the future).
Sorry I couldn’t be more helpful on this, but workers comp is not my area of expertise.
I agreed over the phone with my attorney on an amount for a fall at a grocery store 2 years ago that caused a head injury . I was called to come in and sign the release papers and at that time saw an brain MRI report that i had never seen. In this report there were abnormal findings and a recommendation for another type study. I had called the Dr when the MRI was done and was told nothing abnormal was found.
I told the attorney I needed to talk with the Dr about what the findings mean. The attorney told me that the check had already been deposited in his tyrust account..
How was it cashed before I signed a release.Would the check have been made out to just the attorney and not also to me?
If I have not signed anything is the verbal agreement with the attorney binding??
Was it improper of him to cash the check before I signed the release?
If you agreed to the settlement (even verbally), I don’t see a problem with your lawyer depositing the check in his trust account, even before the release is signed (as long as he didn’t disburse the money to you before you signed). Normally, insurance companies make the check payable to both the lawyer and the client (requiring both to endorse it) but I have received checks that were payable only to the firm’s trust account — sometimes I would ask for this if the client was far away, to avoid the delay in having to send the check back and forth.
I doubt that you’ll be able to get out of this settlement agreement. I’d have a long talk with the doctor who didn’t tell you about the abnormal MRI findings. I’d say he bears the blame for this situation, not your lawyer.
I here it is the 19th of December and I signed settlement papers on Nov 28th an still No Check too my Attorney an No call about anything too me since Dec 2nd about signing a thing for them to sign my name to check when they receive it!! Oh i am getting so depressed now!!!! Blah..-
I was in a car accident and my daughter was with me, she needed therapy for months after. I was unemployed and had medicaid pay for the therapy. I was told over 4 months ago that that we could settle in 4-6 weeks. The insurance adjuster says she is waiting for a response from medicaid on how much they want. How long should I wait for a response from medicaid or is she just giving me the run around.
I can’t be sure, but I doubt that the insurer is jerking you around. Waiting for medicaid and medicare subrogation information is extremely frustrating, even for lawyers. They are both notoriously slow, which is surprising considering that the longer it takes them to get you their lien info, the longer it takes for them to get their money back. You could try contacting medicaid yourself to try to speed the process along, and to confirm that they haven’t already provided the information to the insurer.
When I had a client with a medicaid or medicare lien that was holding up disbursing her settlement funds, I’d usually do a partial distribution of the settlement and hold back an amount I knew would be more than sufficient to cover the lien. Then, when the final lien info finally came in, I’d pay it and do a second distribution to the client of whatever amount was left over.
In your case, if you’re dealing directly with the liability insurer, it may not be willing to do this. However, it’s worth discussing this as an option with the adjuster. For example, if your settlement is for $50,000.00 and you know (from medical bills) that the medicaid lien couldn’t possibly be more than $5,000.00, have them hold back $5,000.00 (or even $6,000.00, to be extra cautious) and pay you $45,000.00. When the lien is finally settled, they can cut you a check for the rest. The insurer may not want to risk underestimating the lien, but it doesn’t hurt to ask.
I was at a signal and was hit by a car. I paid all of my medical bills as they occured. I live in California. I hired an attorney and signed the settlement papers on December 30, 2011. When Can I expect the check? Is there a law in California like Florida where once you settle and sign the papers you must be paid within a certain amount of days? Please advise. Thank you
I don’t know if California has a law similar to Florida’s requiring interest on settlement checks after 21 days. I did some quick research which didn’t reveal anything, but your own lawyer would know far better than I if such a provision exists. Keep in mind that the settlement check will be sent to your lawyer for deposit into his trust account. It will have to clear the trust account before your lawyer can pay you. In Florida, that takes around 10 business days. It may be shorter in California. Check with your lawyer’s office to see if they’ve gotten the check yet. You probably don’t need to talk with your lawyer to get this answer. His paralegal or office manager should be able to tell you. They can also tell you how long the check will take to clear their trust account.
Sorry I couldn’t give you a more definite answer on the time limit issue. I’m not a California lawyer, so just because I can’t find a statute or regulation relating to this issue doesn’t mean that one doesn’t exist. If your lawyer answers this question for you, please come back and post a follow-up comment with his answer to help future readers who may have the same question.
Thank you very much for your insight, I just reached out to my attorney who advised he has not received the check, he agrees we should have received payment by now, and he will reach out to the other attorney today to find out what the hold up is. Thank you very much!
I am following up on my first post of when can I expect to be paid. I reached out to my attorney regarding when can I expect payment, and received an e-mail from him that he apparently has a tax lein against him and the insurance company will not release the funds with out the IRS on the check? Is this even legal? why am I being penalized as a result of his tax issues. Do I have any recourse? this is turning out to be a nightmare. My attorney will check with the IRS on Monday however I am shocked they will not release my funds as I do not have any tax issues. Any advice on your end?
Yikes! I’ve never heard of such a thing, so I really can’t say if requiring the IRS to be on the check is legal. I can see why the insurance company would want to require it, as the check contains money which, in part, will go to your lawyer (he deposits the check in his trust account, then pays both himself and you from that account). I have heard of cases where insurers have required that certain hospitals be listed on a check if that hospital has a lien on the plaintiff, so it wouldn’t surprise me if this was legal (even though it is the lawyer, and not the party, who has the lien issue). Insurers have been burned in the past where they made payments to someone who had a lien (which the insurer knew about) without doing anything to protect the lienholder’s interests — if the plaintiff then failed to pay the lien, the lienholder would sue the insurer (who then wound up having to pay twice!).
It really sucks that your payment is being delayed due to your lawyer’s tax issues. I hope this issue gets resolved quickly.
Thanks for your feedback I will let you know the end result. At this point I will wait to hear back from my attorney to see what he finds out on Monday.
I SIGNED SETTLEMENT PAPERS ON DECEMBER 28TH, 2011. I LIVE IN NYC AND STILL HAVEN’T RECEIVED MY CHECK YET, HOW LONG AM I SUPPOSE TO WAIT? AND DO I NEED A JUDGE SIGNATURE? ALSO AM I ENTITLED TO A COPY OF THE FOLLOWING: SETTLEMENT CHECK & A RECEIPT FOR THE MEDICAL LIEN THAT ARE DUE TO BE PAID?
THE CASE IS AGAINST NYCHA, PLEASE HELP!
First, a disclaimer: I am not a New York lawyer and all the information I provide here is just from my own quick research into New York law to answer these questions for you. It shouldn’t be accepted as legal advice and if your own lawyer contradicts me, he’s probably right. If this is a personal injury case (not workers comp) for an adult, then you don’t require a judge to sign off on your settlement. Pursuant to New York State law C.P.L.R. § 5003-a(b), the city must send the settlement check within 90 days of the date the settlement paperwork — assuming it was prepared properly and addresses outstanding liens — was tendered (received by certified mail or hand delivery). If you had sued a private company, it would have been only 21 days. Government agencies often get more time to respond to things in a lawsuit than private defendants. After the 90 days, if your lawyer hasn’t received the check yet, he can immediately file for a judgment based on the settlement, at which time interest starts accruing and you can execute against the assets of the defendant.
You can certainly request that your lawyer make you a copy of the settlement check (this is pretty common). It is likely that the check will be made payable to you and your attorney jointly, so you can get a copy of the check when you go to your attorney’s office to endorse it. Your attorney should provide you with an accounting statement which lists (among other things) the amounts from the settlement which are being used to satisfy your liens. You can also ask your attorney to see the lienholder’s agreement to accept the amount listed on the settlement statement (and get a copy of the letter for your own records).
Keep in mind that it can take up to 10 business days for a settlement check to clear your lawyer’s trust account before you, your lawyer, and your lienholders can be paid from it.
what happens if a insurer company goes into bankrupt and cant pay any of your claims
You have to file a timely claim with the bankruptcy court in order to preserve any part of your claim. The trustee of the bankrupt estate then handles claim settlement, which can result in plaintiffs getting pennies on the dollar or even nothing, depending on the number of creditors who have priority over your claim and the amounts owed to them. If it’s any consolation, I represented a client years ago against Winn-Dixie, who was self-insured and in bankruptcy at the time, and managed to get a fair recovery (about the same amount I’d expect from a non-bankrupt defendant). So, all hope is not necessarily lost just because of bankruptcy. You really need to have an attorney handle this for you. Bankruptcy makes your claim way too complicated for the vast majority of non-lawyers (and even some lawyers) to handle.
thanks for your advice i have been in that accident for now 10 years and at the time the insurance company was not bankrupt in september 2011 the judge gave a settlement to to paid out but now my attorneys say they cant cause of bankruptcy now my attorneys is going to sue the owner of the car that was wrong in the accident to pay the claim,and they have not yet, it has been now 6 months the judge gave her rule and there is no yet payment its been years 10 years since this accident i need help to know how to get out of this and get my claim
I’m a bit confused by the facts you set out. From what I gather, you were hurt in an accident 10 years ago and at some point after that you settled with the at-fault driver’s insurer, which then filed for bankruptcy.
What isn’t clear to me is:
If you are trying to collect on a judgment against the driver personally, it could be a while before you get paid, if ever. Your lawyer has to collect against the personal assets of the driver, which could be inadequate to cover your judgment. Certain types of assets and income are not subject to execution to satisfy judgments. For example, in my home state of Florida, a tortfeasor’s primary residence, no matter how much it is worth, cannot be seized to satisfy a personal injury judgment.
Your lawyer may have to file what’s known as “proceedings supplementary to execution”, which is an action to discover what assets the driver may have from which you can satisfy your judgment. It can take a few months before your lawyer can even locate assets or income to seize on your behalf. If the driver is employed, your lawyer may be able to have his wages garnished, but that will take a long time to pay any judgment of significance.
i was injured really bad in a car accident in 2003, i receive a judgement after a long case which the insurance attorneys defended the driver through out the whole case which took 10 years they’the driver insurance attorney’, even offer a small amount of cash to pay me before i gave my testimony i refused that offer,i was ask me alot of questions by the attorney when i was in the box,after that trial i waited a few months for the judge to rule,an amount of cash was ordered to paid for my injures no i did not file a claim with the bankruptcy court and no the lawyers did not sue the at fault driver as yet which they been telling me gave some compassion to him because he didnt know he himself have to pay the cash but it been six months now the judge gave her rule and they my attorneys have been sending him a notice for a while now and he have not respond to any it i thank you so much for your advice i was so young at the time of the accident and really didnt know anything thank you i was in the car trap the driver left the scene he didnt even came to assist iam lucky to be alive
That clears some things up. It sounds like you already have a judgment against the driver from the initial lawsuit. I was concerned that if a lawsuit hadn’t been filed yet that the statute of limitations had run — but it looks like you’re safe in that regard. I am a bit concerned as to why your lawyers wouldn’t have initially sought recovery through the bankruptcy court. You may have only been able to recover pennies on the dollar from the insurer, but it’s better than nothing and you’d still be able to go after the driver directly for the amount you couldn’t get from the insurer.
It sounds like the driver may be ignoring your lawyer’s attempts to discover his assets. Your lawyer will have to ask the court to compel answers from the driver if that’s the case. This can take some time (though 6 months seems a bit long). You should probably set up a face-to-face meeting with your lawyer to have him explain to you in plain English what he’s doing to try to satisfy the judgment, as it sounds like you’re not sure. Executing on a judgment against an individual defendant can be complicated, so don’t be ashamed to tell your lawyer if you didn’t fully understand his previous explanation as to what’s going on. You’re better off making him explain it again than you are remaining confused and frustrated at the lack of progress.
I have a civil suit that spread over 14 years against a state. Signed a release for a pitiful, oh-my-god I’m going to kill myself, lowball settlement…and have now waited 25 days.
What course of action do I have now? Any?
If you tell me what state you’re in, I may be able to find out if there’s a statute governing the time your state has to send the settlement check. For example, in New York, state and local governments have to send the check within 90 days of receiving the appropriate settlement paperwork (as I told Marilyn in another comment under this article). Your state may or may not have a similar provision.
I am part of a class action lawsuit against a company in Ky. The judge signed off the final distribution plan on Dec 20th, 2011 and we recieved letters that the settlement checks were expected to be mailed by Jan 31, 2012. No Checks yet, the recording on the 1 800 number we were given to call has changed from Jan 31st to some time soon but no date is given. If you call and speak to a customer service rep. they state they have no informaton at this time. Any idea how long distribution of settlement checks can take and if there is anything that can be done to speed up the process? Thanks Nicole
I doubt that there’s anything you can do at this point to speed things up. It sounds like they ran into logistical issues with verifying and issuing a large number of checks. I doubt that this would hold things up for very long, so I’d expect you to get your check by the end of the month. Of course, at this point you have more information than I do.
My attorney has withdrawn from my case and is very unprofessional. I expect for there to be intentional delays in receiving my settlement. Does the money still go directly to them to distribute even though they chose to withdraw prior to the settlement?
Let me see if I have the facts straight before I take a stab at an answer. Did your case reach a final settlement agreement before your attorney withdrew? Did your attorney voluntarily withdraw, or did he withdraw because you fired him? If he voluntarily withdrew, do you expect him to claim that your conduct “forced him to withdraw”? It really seems odd for a lawyer to voluntarily withdraw after a settlement, as he may lose any right to his fee. Also, what state are you in, as ethics rules can vary from state to state.
The case is pending settlement if I do not get a new lawyer. The attorney voluntarily withdrew stating a false reason in the motion which does make it seem like it was because of me. The settlement came about after they withdrew. The state is MI. And believe me odd is the theme for what I’m dealing with.
Disclaimer: I am not a Michigan attorney and not your attorney. You should not consider this legal advice.
From my own look into the Michigan attorney ethics rules and some underlying caselaw, here is how I believe this will play out:
So, my opinion is that the insurer should definitely not send the check to your now-former lawyer. If your lawyer doesn’t assert a charging lien, you get the full check (you’ll still have to pay your medical liens). If your lawyer does assert a charging lien, and you dispute his entitlement to a fee or the amount claimed, the insurer should interplead the money with the court, and the court should decide the fee entitlement issue.
Aside from fees, you may owe your attorney his costs, which are a separate matter. Usually your fee contract will state how costs are to be handled in the event of withdrawal.
Prepare yourself for things to possibly get more “odd” in your case.
That information is very helpful. Thank you. Here is more “oddness” for you: My previous attorney entered into settlement without my consent which sent the defendant through the process of having the amout approved by their adjuster. To my knowledge there has not been any checks sent and no confirmation from my old attorney to accept. The defendant is ready to move forward with this amount on the table that is not satisfactory to me. Will your $10 plan help me in this case to negotiate a higher settlement? There is another defendant in the case who I have yet to negotiate with also.
Sorry, but my $10 tip won’t work for people who are currently representing themselves (pro se). If your attorney withdrew (and the court approved the withdrawal) he should notify the insurer that he no longer represents you. The insurer won’t speak directly to you while they think you have a lawyer.
Sounds like you need to call them to see if they are aware of the situation and the fact that your lawyer made a settlement offer without your approval.
Thanks again. One last question. Do I have the right to ask the insurance adjuster what the policy limit is?
Sure, it’s always the “one last question” that gets you. I spent well over an hour looking for the answer to this and I’m sorry to say I came up empty. I couldn’t find a Michigan statute which requires disclosure of auto liability limits (my state of Florida has one that does) or any discussion of this issue other than sites which recommend you demand policy limit information (with no indication of whether such demand is backed up by any legal authority in Michigan). My suggestion at this point would be to either call some random Michigan personal injury lawyer to see if he can give you a quick answer, or maybe try the Michigan Dept of Insurance. If you get an answer, I’d appreciate it if you’d come back and post it here.
I’m back. I do not have an answer to the policy limit question unfortunately. I do have a question about charging liens. How can I tell if the lien has been put in place? My old attorney is trying to change the cost amount even thought I know what terms the cost should be based upon because it is in writing. I have not been told what that number is yet. I have received once check with both of our names on it and I want to know what I am able to do if no charging lien is in place?
A charging lien should be perfected by your lawyer filing notice of it in your case with the court. Most often, it will be a document entitled “Notice of Attorney Charging Lien” or something to that effect. Whether the court filing is required, or merely notice to the relevant parties (in your case, the liability insurer) will vary from state to state — some states have statutes which govern charging liens and some are granted via common law (caselaw).
If your clerk of court has its docket online, you can check the docket for your case to see if your lawyer filed a notice of lien. If not, you’d have to go to the clerk’s office (bring your case number) to review the case’s docket in person.
If your lawyer didn’t file a notice of his lien in your case, I’d tell the insurer to re-issue the check in your name only and inform it that your lawyer withdrew prior to settlement and no charging lien was filed. It may tell you that it received a notice of lien directly from your lawyer, in which case it probably won’t re-issue the check in your name only (if it has valid notice of a charging lien and issues the check to you alone, your former lawyer may be able to sue it for the asserted fees, even though it already paid the full settlement amount to you).
If your lawyer did assert a lien, it gets tricky. I wouldn’t endorse the check and give it to your lawyer while the fees are in dispute. Ideally, you would file a motion with the court asking it to rule that your former lawyer’s lien is invalid due to his withdrawal being without good cause. A hearing would need to be held to determine whether the circumstances of his withdrawal entitle him to still recover a fee, and if so, how much. Obviously, this would be tough for you, as a lay person, to do on your own. You may also have to interplead the settlement check with the court while it makes its determination (it would then pay out the money in accordance with its ruling).
Keep in mind that even if your lawyer didn’t perfect his charging lien, he could still potentially sue you for breach of contract over a fee dispute. The charging lien only secures the settlement funds (prevents them from being paid directly to you). Failure to file one doesn’t invalidate your fee contract. A breach of contract case would hinge on whether the lawyer’s withdrawal was under circumstances that still entitle him to be paid.
Before you start worrying about all of that, check to see if your lawyer filed the notice of lien with the court and see if the insurer will re-issue the check. Let me know how that goes.
I was in a car accident in oct. I live in ga. I dont understand why im waiting so long with my settlement. when i call my laywer all they say is we trying to get all the medical bills and getting numbers together. They been saying that for the past 3 months. I found out they trying to send my case and the other woman in the car case in together. After we told them not too How can i get them to speed the cases up?
If your accident just happened in October, you may not be at maximum medical improvement (MMI). Have you stopped receiving medical treatment for your injuries? If you’re not at MMI yet, your case may not be ready for settlement. It’s not uncommon for a lawyer to wait at least 6 months after an accident before making a settlement offer, just to give time for your medical care to play itself out and give a better picture as to whether any injuries are permanent. During this time, lawyers usually just get updated medical records and billing information, as there’s little else they can do. Settling before you reach MMI risks shortchanging yourself, as you may not heal as well as expected.
If your doctors have indicated that you’re at MMI, it could be that they are holding things up by not timely responding to your lawyer’s medical records requests. If you used health insurance to pay for your treatment, your health insurer could be the one that’s slow to respond to your lawyer. Your lawyer absolutely needs up to date billing and insurance lien information before making a settlement demand, so he knows how much to ask for. You could ask your lawyer’s office if there’s a particular medical provider holding up the works by not producing the records he’s requested, and if so, apply some pressure to that provider to produce the records.
As to your lawyer trying to settle both yours and another woman’s claim (even from the same accident) at the same time, you are right to be upset about that. One claim should have no effect on the other, and they should both be dealt with on an individual basis.
Hi, I live in MD & was involved in a sexual harrassment suit against a company I worked for. I signed the final settlement papers on 2/13/12 & in the agreement it states that the company would issue me a check by 2/17/12. As of today I still haven’t received my check. They were also issuing 2 separate checks. 1 for my attorney, for his fees & 1 for me. I called my lawyer today to ask him if they sent my check yet & he said that the defendants lawyer forgot to put in a request for payment so now I have to wait another 1 to 2 weeks to get my check. Is this legal for them to do to me & do I have any legal recourse? Because I could swear that when we went to mediation, at the end when we reached an agreement, the judge told me they had 30 days in which to pay me. Thanks for any advice you can offer me.
Unless you want to try to get out of the settlement agreement due to the defendant’s failure to comply with the payment terms, it’s likely that the best you could hope for would be interest added to the late payment. Did your settlement agreement provide for interest if the payment was not issued on time? Even if it didn’t, it may be worth discussing this with your lawyer as a way to compensate you for the untimely payment (and apply pressure to the insurer to pay more quickly).
Given the fact that your payment will only be 3 weeks late at most (assuming that the insurer pays as your attorney has indicated), interest may not amount to very much (unless you got a very large settlement) and may not be worth the effort of pursuing.
I assume when you say that the “judge” said that they had 30 days to pay at the mediation, you really meant “the mediator” (of course, your mediator may have been a judge). He was probably referring to a standard time to pay for agreements which don’t explicitly set another date — which yours does. Your written agreement trumps what a mediator may have said about the payment schedule.
Thank you very much for taking the time to answer my question. The settlement agreement did not specify for interest to be paid in the event that payment was late. When I said the judge said that, I did mean the mediator, my attorney told me she was also a judge. I was under the assumption that since she said the defendants had 30 days in which to pay me, they would stick to that. My attorney doesn’t seem to be as upset as I am, so I’m not sure if I want to bring up the idea of adding interest to the amount. If I would, do you know the amount of interest I would be able to collect in Maryland? I’ve looked all over the internet for information, but can’t seem to find anything. Again, thanks so much for taking the time to answer me. Have a great evening!!
A mediator, even one who is also a judge, doesn’t have the power to overrule the terms of a settlement agreement made by the parties. I think she probably said the “30 day” thing out of habit, as most settlement agreements don’t provide a specific time for payment, and 30 days is pretty standard. Your written settlement agreement would certainly control, in this case.
As far as interest, if your case was brought under state law (either whole or in part) I’d use Maryland’s post-judgment interest rate (the interest rate that would be applied if you won in court and obtained a judgment). It’s currently 10% per year. Here’s the Maryland Code provision which sets the rate (even though it says 2010, I confirmed that it hasn’t changed on Lexis).
If your case was brought solely under federal law, you’d probably get stuck with the federal post-judgment interest rate, which is disgustingly low. Follow this link, then scroll down until you see the “1-year” line under “Treasury Constant Maturities”. Look across the table to find February 13, which shows an annual interest rate of .15%. Not 15%. It’s really .15% (in other words, not worth pursuing).
If you’re a Facebook or Google+ user, a “like” or “+1″ for this article (buttons are at the bottom of the article, above the comments) would be appreciated. It helps others find my site, and I’m always looking for more viewers.
Once again, thanks so much for taking the time to answer my questions!! It really does help me because I was unsure of what to do next. I agree with you that is a disgustingly low amount. Maybe if it were higher, they wouldn’t be so fast to play games with other people’s money. Thanks for the links!! I will +1 your article & FB like it for you also. Have a great night!!
Hi I was in a car accident 1 year ago 2 day-I lives in Minnesota and was just wondering how long b4 I here anything about them settle my case-Iam still in therapy I’ve done took like 2 MRI and I’m just tired of the BS my lawyer putting me threw-he say well it takes a year b4 I can settle anything-please help thanks
First, you may want to read this article, if you haven’t already. I know a lot of people think that their settlements are being held up by their lawyers, but often it’s really a matter of their lawyers waiting until their clients reach maximum medical improvement (MMI) before attempting a settlement. If you’re not at MMI yet (your doctors will determine this, not your lawyer), the full extent of your injuries and future treatment needs is unknown. Before you reach MMI, your doctor may try to predict the course of your recovery, but if he’s wrong and unexpected complications arise, you could wind up with much higher medical bills and more severe limitations than he anticipated. Once you’re at MMI, the guesswork is removed and you can be sure that you are settling for an adequate amount.
Because you’ve had 2 MRIs, I assume that you are or were being considered for surgery. If you do need surgery, or just had surgery, you won’t be at MMI until you finish whatever post-surgery therapy is required. It can easily take over a year for a person to reach MMI, so you’re lawyer may just be waiting to get the “go ahead” from your doctor before making a settlement demand.
Just as an example, say a person needs a rotator cuff repair surgery. Doctors know the general odds that the surgery will be successful and what limitations the person should face afterwards. However, sometimes these surgeries result in excess internal scar tissue forming, called adhesions, or even worse, a condition known as “frozen shoulder.” If you’re one of the unlucky people who develops such a complication, you may need additional surgery to correct it. So, if this hypothetical person’s lawyer settled her case before the surgery was done and the therapy completed, he would have settled it based on the incorrect assumption that everything would go as planned. Then his client would be pissed off because she didn’t get enough to pay for the additional surgery and treatment required due to the complications.
In short, it’s better for your lawyer to be cautious and wait for you to reach MMI before attempting settlement. Otherwise, he risks settling for too little. It sucks, but it’s not your lawyer’s fault that you’re medical outcome is uncertain at this time. Be patient. Don’t shortchange yourself by trying to rush a settlement.
K thanks so much for taking your time out 2 read and respond back/Well I turned down surgery I ain’t want that for my arm-I had torn tissue and my arm almost frozen up-that’s why I’m still in therapy a year later-but I’m not rushing anything,just asking a few ?thanks again
Hi, I was in an accident 2/28/11 and have not heard much from the attorneys office other than they are trying to get my medical bills taken care of. That’s fine but I live in Washington and was wondering what the chances are of getting a partial distribution? The settlement was for 50,000 and the lawyer fee is only like 33% I know my bills don’t exceed 5000 and they’ve already dealt with my insurance for 10,000. I’m not trying to money grub and hell I’d be happy with just 3,000 so I can pay my apartment and move. I just don’t know if Washington state has a different policy that would not allow me to get this partial distribution?
I’ve reviewed the Washington state bar ethics rules and advisory opinions and I see nothing which would prevent a partial distribution, assuming that there would clearly be adequate funds to satisfy all liens after the distribution is made.
In fact, Washington state bar RPC 1.15A(f) states: “Except as stated in this Rule, a lawyer must promptly pay or deliver to the client or third person the property which the client or third person is entitled to receive.” So, basically, as long as the part of the settlement funds you request are not potentially owed to a third-party lienholder, your lawyer has an ethical obligation to make the partial distribution. If it’s clear that after attorney’s fees, costs and liens you will definitely get at least $3,000.00 from the settlement funds, ethically your lawyer should have no choice but to give you the money once you ask for it.
It’s not money grubbing at all. You’re not asking for a loan or a hand out. If your lawyer is holding on to funds which you will clearly receive, no matter how the medical bills are resolved, there is no reason why he shouldn’t turn those funds over to you right now. It’s your money.
Thank you so much for such a great and fast response
I just assumed he was holding onto it until everything was paid but all that’s left to pay is the medical bills which are not very much. I just wasn’t sure if I had the right to ask for the money yet. If he does say he can’t do it for whatever reason is there something I can do to counter that then? Again thank you so much for doing this it’s very awesome of you to help those of us that don’t fully understand the legal system 
Most lawyers would prefer to do just one distribution, and usually that doesn’t pose a problem for clients. However, if a client needs money and the distribution is being held up by medical lien issue that only affects a portion of the settlement funds, there’s no real reason that the remainder of the funds can’t be distributed.
If he says he can’t do it, the only legitimate justification would be that there isn’t $3,000.00 of the settlement funds which are not in dispute (may be subject to liens). He can’t refuse to do it just because it would be inconvenient for his bookkeeper. Print off the ethics rule I cited in my last comment and highlight subsection (f). If he says he won’t do it and can’t show how the $3,000.00 is in dispute, ask him how he reconciles his refusal with the “prompt payment” requirement in that ethics rule. His fear of you filing a bar complaint against him (which would be justified) should result in him giving you the partial distribution. If it doesn’t, you can file an ethics complaint with the state bar (this should be a last resort, as these are taken very seriously).
Fantastic thank you so very much for your help and pointing me to that article. You’ve been awesome and thanks again for doing this it’s greatly appreciated
Normally I’d not mind waiting heck I’ve done it almost a whole year whats a few more months but I’ve run into an issue with my roomate and thus don’t have rent for April. So it’s either get some money from this early or lose the apartment. I don’t need all of it just enough to pay up to the lease and get the heck away from my roomate. Thanks to work running skeleton crews for months don’t exactly have much of an income beside my half of rent and care for me and the hounds >_< Lovely economy we live in lol.
I would just like to say another big thank you. Talked to my attorney, who really is a good guy just really busy lol, and he thought they’d already given me some money which isn’t the case lol. Multicare is jerking them around (which I figured as they are notorious for being slow and dumb) so they are going to hold the money out for them and what my insurance wants, which I thought they had already paid, and I can pick up a check tomorrow for what is left. I’m kind of glad it’s taken so long as it essentially is coming during a time I greatly need it. I never would’ve even considered this if it hadn’t been for this site so thank you for doing this
You’re very welcome. I’m glad it worked out.
I was injured in auto accident 6 years ago and the case was finally settled January 2011. I have not received the settlement payout yet. I have repeatedly called my attorney for an explanation of why I haven’t been paid as of yet. I keep getting the excuse that medicare has not signed off. This has been over a year ago now. My attorney will not answer my calls or release any of my funds. What can I do to get paid? The attorney has stated to me that he had received the check back in March 2011 and deposited it to his trust account and stated he was going to take his money right away. This accident happened in Illinois.
Medicare has been known to drag its heels quite a bit when it comes to giving a final total for reimbursement. A year is rare, but not unheard of. Have you discussed the possibility of a partial distribution with your lawyer, as I mentioned to Tiffany in another comment (it may be unethical for him to refuse to agree to a partial distribution)? If it’s clear that your medicare lien couldn’t possibly eat up all of your settlement (after fees, costs and other medical liens), your lawyer could hold back an amount which is sure to cover the full bill and pay you the rest. Usually, your lawyer will know the full amount medicare is asserting, and will only be held up on getting it to agree to a reduction for “procurement costs” (mostly your lawyer’s fee %). If he knows the full amount claimed, he can withhold that much and disburse the remainder (and give you the rest after medicare reduces its claim). If your case involves a medicare “set aside” for future medical treatment (in some cases, you need to assign some money to cover medicare’s future payments for treatment due to the accident), this may not work. Given that your injuries occurred 6 years ago, I wouldn’t think that would be the case with you — unless your injuries were so severe that you’re still treating for them.
If your lawyer won’t call you back, see this article.
I settled my case and signed my papers Jan .23 2012.The attorney said the check will be here in 30 days and I have been contacting my attorney to only hear the secretary saying “He will call you when the check comes in” and nothing else. It is currently March 1st so he is a little past deadline.Other then talking to him and getting no answers.Would there happen to be a alternative route to finding out that information or are there specific questions I should ask him because I am getting very frustrated at this point?Its not a big money settlement (under 10K) if that means anything.
There really is no other way to find out if your lawyer has gotten the check. The insurance company and its lawyers will be the only other people who know when or if it was sent out, and they won’t talk directly to you because you are represented by a lawyer.
Most insurance companies make the settlement check payable both to the client and law firm, so your signature will most likely be needed before your lawyer can deposit it in his trust account. If this is the case, your lawyer will want you to come in immediately after the check arrives, as he can’t get paid until the check clears. So there isn’t any reason he’d delay notifying you that he received the check.
If this is one of those rare cases where the insurer wrote the check to only require the lawyer’s endorsement, your lawyer may have received it, deposited it, and is just waiting for it to clear (up to 10 business days) before calling you in.
I’d give it another few days before becoming concerned. It could just be a delay due to mail time (your lawyer mailing them the release and them mailing the check). If you’re having trouble getting a return call from your lawyer, see this article.
While the insurer may owe you interest on the settlement due to a late payment, the fact that your settlement was only 10k means it probably wouldn’t be worth pursuing at this point.
I was recently in a slip and fall accident in california, where the offending company left a substance without a slippery when wet sign out. I fell and suffered some serious injuries and I an looking at 3 months rehabilitation. Their insurance adjuster called me and said they are aware it was their fault it happened. I’m not a greedy person and i dont want to involve a lawyer because id rather settle and get it over with but I was wondering in a situation where the company is at fault and admitted so openly, how much should I expect them to settle for.
First, see this article. Because you’re not using a lawyer, I’d expect them to offer the amount of your medical bills and a little extra for pain and suffering (probably not even 1x your medical). It’s up to you whether that’s good enough. If not, they may move a little — but don’t expect any serious movement without you getting a lawyer. If you’re not happy with their initial offer, I’d suggest at least talking with a personal injury lawyer to see what he thinks he can do for you. Use the free consultation. If you don’t want to hire him after that, don’t.
There are some things you should keep in mind if you want to settle on your own. Make sure you’re at maximum medical improvement before making an offer. You don’t want to gamble that all your medical treatment will go as planned. Also, be sure to include your future medical needs (meds, follow-ups) in your calculation. If your health insurance has paid for your medical bills, you will likely have to pay it back. Don’t let the company fool you into thinking that they don’t have to pay for medical bills that your health insurance covers — they do (because you have to pay the health insurer back in most cases).
Do you know of any statues in the Sate of CT. in regards to Settlement Check timing? A settlement was signed on Friday 4/3/2012.
The abridged version is that it’s 30 days from the date that the defendant receives the signed release.
For the full version, here’s your statute:
UPDATE – It’s April 18 and the attorney has yet to receive anything from the insurance company.
I live in NJ reached a settlement agreement.. we agreed that I would receive payment in one week after signed paperwork. I signed it on 03/23. all the other back stuff cleared too like CJS. Its now 04/13 and no check yet. what can I do or how can I put pressure on my attorney to speed up the process?
Well depending on the wording of the settlement agreement, the defendant’s failure to pay within the 7 days will cause one of two things to happen: (1) the defendant will have to add interest to the check at NJ’s post-judgment interest rate for each day that it is late or (2) it will allow you to void the settlement.
Telling your lawyer that you are considering bailing on the settlement due to their failure to comply should light a fire under him to get them to issue the check immediately (hopefully with interest).
What are your thoughts on funding companies? I’ve heard mixed reviews
I wrote an article about them here.
Hi, I live in Texas. I received a settlement from a car accident when I was 14, and my mom (who I am estranged from) okay’ed for me to get the funds at the age of 24 instead of 18. I am 19 now, and need the money for school. I have been trying to see what kind of process I can look forward to if I am seeking early release of my funds. So far, I have been denied by the judge when I tried to have Peachtree release my funds, because I would have only ended up with a fraction of the money. A couple of other lawyers said I would end up with the same result, because I’d be paying them fees as well. What can I do?
How are the funds being held now? Are they being held in trust with your mother as trustee? Are they invested in some form of investment vehicle that doesn’t mature until you’re 24, and has a substantial penalty for early withdrawal? When you mention Peachtree, are you saying you wanted a lawsuit loan from them, or are they currently holding your settlement funds?
The lawyers who said that taking legal action to get the funds early may wind up costing you too much in fees may be right (of course, this depends upon how much is at stake in the settlement — $5,000 in attorney fees for a $100,000 settlement might not be a bad deal, but for a $20,000 settlement it would).
If your funds are being held in trust, and the trustee has the ability (but not the willingness) to disburse the funds to you for school, you may want to consult an estates & trusts lawyer, as there may be an option to sue the trustee for breach of fiduciary duty. Again, whether such a lawsuit is financially practical depends on the amount at issue and how much the lawyer intends to charge.
Hi i was in car accident on 1/26/11. Well progressive and my lawyer couldn’t find the driver who hit me and ran. But i did have bodily injury on my policy they would pay for. So progressive agreed to that just few weeks ago sent me letter in the mail and all that. My lawyer then after had me sign the paper work to release the check. well that was two weeks ago this past week i check in and the check bounced. Due to endorsement issue. My question is how long can it take to for them endorse it again? resend it. Is there anything i can do to help speed up or put some fire under the car insurance company? I am in California
If it was an “endorsement issue” that should be a problem with how the check was signed by you and your lawyer. Did you actually sign the back of the check from Progressive? Did you see who the check was made payable to? Most settlement checks are made payable to both the lawyer and the client (and the client’s spouse, if you are married and there was a possible loss of consortium claim). If your lawyer tried to deposit the check without having you (or your spouse, if applicable) sign it, that could be the problem. I’m not sure if the bank would give your lawyer the chance to fix this error (which would be a very quick fix — just have the missing payee come in and sign the back of the check).
Sometimes insurers will also add third party lienholders (like your health insurer) as payees on the check, to ensure that they get paid out of the settlement.
If there was another issue with the check (I doubt that it “bounced”), such as the insurer putting the wrong name or names as payees, then you’d definitely have to have Progressive re-issue the check. While there are measures that can be taken to push Progressive along, such as a lawsuit to enforce the settlement agreement), realistically, that will probably take longer than just waiting for a new check to be sent. This would only be reserved for times when the insurer really drags its heels in issuing a new check (say more than 30 days).
If the error was Progressive’s, you may be able to get them to add interest to the check to account for the delay in payment. However, this probably wouldn’t amount to much (even a month’s worth of interest on most settlements won’t be worth the trouble of trying to get it).
I’d suggest you get clarification from your lawyer as to why the bank rejected the check. Make sure that it’s Progressive’s fault, and not one of the endorsement errors I mentioned above.
I was in an accident on November 23, 2011 in Michigan. I was rear ended and my car was totalled. The other driver was issued a ticket for her negligence. I had an MRI done which showed that I have a herniated disc. I have undergone physical therapy which has improved my pain level, but not made it completely go away. My attorney is asking $100,000 since that is the amount of coverage the other driver had. Typically, how long is it before a settlement will be reached? Once a settlement is reached, would I then have to pay my insurance back for the monies they paid? I have Blue Cross Blue Shield and then secondary I have my auto insurance.
If your case is clearly worth $100,000 or more, the insurer will want to settle within 30 days of receiving your attorney’s demand for policy limits to avoid the possibility of a bad faith lawsuit. If your doctors are not recommending surgery for the herniated disc, valuing your case at $100,000 may be a stretch. I’m not suggesting that you should push for unneeded surgery. It’s just common knowledge that insurers typically value surgical cases more highly than non-surgical. Your case may have other factors which would increase its value. I just can’t tell from the facts provided.
If your case is worth less than policy limits, how long it takes to settle will depend on (1) how pre-suit negotiations go and (2) whether litigation is required. That can vary from a few months to a few years.
It is very likely that you will have to pay back your health insurer, either in whole or in part, depending on the type of policy you have. The article I just linked to addresses this issue.
As to your no-fault PIP benefits, my understanding of Michigan law (not a Michigan lawyer, so take your own lawyer’s advice over mine) is that the tortfeasor receives a set-off for any amounts paid to your by your PIP insurance, so you do not reimburse PIP from your liability settlement. In other words, because you can only recover economic damages in excess of that paid to you by PIP from the tortfeasor, you never have to pay PIP back because you never receive money from the tortfeasor to cover the PIP carrier’s prior payments. As an example, if your PIP paid $5,000 in medical bills (assuming no other insurance for this example) and your total medical bills were $20,000, you could only sue to recover $15,000 (the amount which exceeded the PIP payment). From that $15,000, you would not have to pay your PIP insurer anything.
Hope this helps, and I wish you a quick (and fair) settlement.
I had a daughter who was 22 weeks old at the time of the accident and she was exclusively breastfed. As a result of the accident (pain related, unable to take pain meds because they would pass through my milk), I stopped producing milk as I had before the accident and therefore she stopped gaining weight appropriately and had to be supplemented with formula. I believe that this is why my attorney is asking for the limit of $100,000. My health insurance is basically denying paying for anything and asking my auto insurance to pay for it, so far Blue Cross Blue Shield has paid nothing. Would I have to have surgery in order to collect? The doctor has recommended that I try other options prior to surgery, but surgery is something that could possibly happen. I don’t want to have back surgery and am trying these other options and even if they do not work do not know if I would follow through with surgery.
Don’t have surgery unless you need it. It is always best to exhaust non-surgical options for disc injuries. Put what’s best for your health above what’s best for your liability claim. I only mentioned surgery in my last comment because insurers arbitrarily treat surgical cases more seriously than non-surgical cases, so it may affect the insurer’s willingness to pay policy limits. So, no, you do not need to have surgery to collect. It just tends to make a case easier to settle, as the insurer will assign it a higher value. Because surgery is still a possibility in your case, your lawyer can still argue to the insurer that you will need it and that your case should be treated as a surgical case.
Anecdotally speaking, clients of mine who have had back surgery for disc issues often don’t experience a huge improvement in pain — it most often helped in cases where they had numbness or weakness in their extremities. So, if your problem is just pain, and not numbness or loss of function in your limbs, surgery might not help that much.
As to your issue with the PIP insurer and health insurer, this mess can be blamed on Michigan’s PIP laws. In Florida, where I practice, PIP is always primary to health insurance, so PIP always pays first. In Michigan, you have different PIP options, (1) uncoordinated PIP, in which PIP is primary to health insurance, and (2) coordinated PIP, in which PIP will most often be secondary to health insurance. The default is apparently “coordinated PIP,” as it is cheaper. Unfortunately, coordinated PIP can lead to the finger pointing between the PIP and health insurers that you seem to be experiencing, as it is not always a cut and dry case of the health insurer being primary. Most often, the issue appears to arise when the health insurance is an ERISA policy (ERISA is a federal law governing employer-sponsored benefit plans), and contains a clause which disputes it being primary in accident cases.
Dear fl litig8r,
I came across your blog when I was surfing for info. that would give me a clue how long before I get my settlement check. I was a heavy equipment mechanic for a concrete company in Colorado until I tore up my back. When I learned that it was permanent and that I had to find a new type of work after twenty years in this industry I was dissapointed. When my ex-boss turned my freinds against me because I hired a lawyer I was dissapointed. When a company bratt (family business), damaged my tool box while I wasn’t there, I called the cops on them and got my tool box repaired,and yes I was dissapointed.
So now that I read your blog and found out that my settlement check wont be released any time soon, I wont be dissapointed. Whats more when I learn that the amount I will probably get wont be what I anticipated,I wont be dissapointed.
Thanx for the info and wish you continued success.
Worker’s Comp cases (I assume that’s what you have) can move along differently from personal injury cases, mainly because they usually require a judge to sign off on the settlement. While this can lead to some additional delays (waiting for the judge’s approval) it may also result in the payment from the carrier being made more promptly, as they know the judge will not respond well to any shenanigans in issuing the settlement check. Hopefully, the carrier’s fear of getting on the comp judge’s bad side (for this and future cases) will speed along your payment.
Thanks for the kind words. I hope your case turns out better than you think.
Hi, I came across this while looking for answers on google, This isn’t for me but for a friend, She is sueing a doctor/pharmacy, the insurance company’s lawyers wanted to settle out of court and kept sending papers with different amounts of money they were willing to pay to her lawyer, when they came up with a price that was satisfactory to her, she signed the paper and agreed to the amount.
She was supposed to get two checks, one being about two months from now, the other some time much later, But now apparently They’ve “changed their minds” about what they agreed upon, and are looking for settling for less and sending them more paper work… Also talk of potentially waiting her out, or scheduling a court date has come up, which could apparently take up to two years before she sees the money she is owed,
I am a little confused, I thought that once you agreed upon a settlement then that was done and what you are hold too. My friend really needs the money she is owed for family and living expenses, It just seems shady, any insight or explanation you could give to help understand this matter would be appreciative.
Well, that sounds like a pretty unusual negotiation. Whether or not she has a binding settlement agreement will depend in large part on the specific wording of the agreement they sent her (whether it was an actual offer) and whether she did all she needed to do to timely accept it. If it did constitute a binding settlement agreement, she should be able to bring a lawsuit just to enforce the agreement and not have to go through a lengthy tort lawsuit on the underlying claim. I’m sure that her lawyer has already considered that possibility.
This really is a case of the devil being in the details. Like any other contract, settlement agreements are subject to various defenses even if the agreement turns out to be valid (just see my article on getting out of a settlement agreement).
Hi, I live in florida just a quick question What do you know about chubb insurance, i was in a car accident 9-23-2011, i want to know if they are a good car insurance to settle case, person policy limite is 500,000/1,000,000 Thanks so much. my medical bill so far its $19,000
Chubb tends to cater to higher end clients, as evidenced by the policy limits of the driver that hit you. They will often be both the auto and homeowner’s insurer for their insureds. I see this a positive as far as settlement possibilities are concerned. I would expect Chubb to want to spare their wealthy client the inconvenience of participating in a lawsuit, meaning that they would pay more than your average insurer if it means keeping their insured happy (and out of a lawsuit). Now, while this doesn’t mean that Chubb will entertain ridiculous offers, it does mean that they probably wouldn’t want to risk ticking off their client (and losing his business) over a few thousand dollars. So, I’d expect the Chubb adjuster handling this claim to have more leeway to “make it go away” than, say, a State Farm or Progressive adjuster.
Thank you for your answer, how much you think they will offer to settle thanks again.
I’m flattered that you think I can guess what they’ll offer based solely on the amount of your medical bills. I’m good, but not that good. The only advice I can give you as to the possible value of your case is in this article.
Hello,
I live in the state of Kentucky. Two years ago my 9yr old daughter was involved in a summer camp accident at the YMCA. This resulted in fractured Tib/Fib and caused a bend in my daughter”s leg. The YMCA took 100% responsability for the accident due to the negligance of the counselors. I decided to settle the cast about 1 month ago, b/c I wanted to make sure my daughter would be okay. I have heard nothing. My lawyer said I should hear something soon. I’m starting to get pissed off. How much $ should I expect and when. This has impacted my daughters life forever & I’m tired of the BS. Thanks
I’m a bit confused. When you say you “decided to settle the case about 1 month ago”, was there an actual offer from the YMCA on the table? It doesn’t sound like it if your lawyer said that you “should hear something soon”. That sounds more like your lawyer made an offer to settle and was waiting to hear whether the YMCA would accept (or counter-offer). If that’s the case, settlement offers are typically left open for 30 days. If there is no response by then, the lawyer can either follow up with a phone call (in case there is a good reason for their delay) or file suit.
I really can’t speculate as to the value of your case (especially just knowing that it was a broken leg). I can direct you to this article, which discusses how to estimate the value of your lawsuit.
As to when you should expect your money, without knowing if you even have a settlement agreement (have you signed a release?), I can’t say. If you do in fact have a settlement agreement, your lawyer should provide you with a written distribution statement showing you how much you will get from the settlement. It will list the gross settlement amount, the amount for attorney’s fees and costs, any amount needed to pay back your health insurer and to pay off any outstanding letters of protection — the remainder after these deductions is what you get.
One thing you should be aware of is that because the settlement is for a minor child, when you do reach an agreement you may need court approval. This will often depend on the amount of the settlement (the bigger the settlement, the more likely court approval will be needed). That could delay payment by another month or more.
Thank you for the reply. Yeah I have been a bit confused on the whole thing myself. All I know is that they wanted to settle the case about 1 year ago, I decided that I would wait to make sure her leg was healing properly. I’m just starting to question my lawyer and his intent. I have been left in the dark concerning settlements amounts, even though I’ve asked him a couple times what we should be expecting. He’s always unsure. I do realize that the judge would need to approve it, but at this point I know nothing. I’m starting to wonder who’s side he’s on, and wether or not I should seek a different lawyer. What questions should I ask him?
Well, the big question right now is “Has the YMCA made any settlement offers, and if so, how much was the last one?” When you have this number, you can estimate how much you’ll get on your own by first deducting your attorney’s fee percentage (check your contract for the pre-lawsuit percentage) and then any amount your health insurer has paid for your daughter’s accident-related medical care. There will probably be a few more deductions, such as your attorney’s costs — but at this point those shouldn’t be significant.
If your lawyer hasn’t been engaged in settlement negotiations yet, it may be time to have a “come to Jesus” meeting with him — face to face. If he doesn’t have the time to actively work your case, ask him to let you out of the contract so you can find another lawyer who does. It might be a good idea to set up a half hour face-to-face appointment with him anyway, just so he can bring you up to speed on what’s going on.
Thank You so much for all you do & for helping little people like us! It’s much appreciated!
I received a partial payment from my settlement May of last year. My lawyer still has not paid any of the medical bills I have. Is the any type of timeframe he has to pay the medical bills? It will be a year at the end of this month. (State of NJ)
Ethically, he has to pay them as soon as he has the money, once the amount of the bill is finalized. While it’s not unusual for there to be delays in getting final billing information from medical providers and health insurers, and some extra delays while your lawyer tries to negotiate these bills down (if possible), one year from the date of settlement seems unusually long. You may want to gather up your billing statements that show the outstanding amounts and set up an appointment with your lawyer to go over this.
My son was involved in a auto accident last June 2011. His grandfather was drinking and driving and fell asleep at the wheel, losing control and rolling his truck over. He was taken by ambulance to a trauma center in Charlotte county has multiple test done was treated and DISCHARGED before I arrived from Dade county to find my 13 y/o son sitting in a wheelchair alone outside of the ER. They had soft casted his arm and sent him on his way with DC papers instructing him to follow up with a Ortho in 3wks stating that patient understood these instruction :/ Needless to say as soon as my pediatrician opened her doors I was there (the accident was on a sat night I saw dr mon morning) She immediately referred me to my local children s hospital. Once we arrived my son was admitted immediately had multiple xrays and blood test to check for severe infection. So they removed his soft cast to find gravel, leaves and dirt on a wound oozing puss, super swollen and very red. They had to drug him up to be able to reopen his wounds and clean them all out that including scrubbing while this poor child cryed
So after all this is said and done I got an attorney which is saying I can only get 10,000 settlement from Allstate because all their paperwork is in order :/ WTH! I have about $90.000 in bills my son ended up with nerve damage on his rt hand from the laceration and is still in therapy 
Do I have to except this ridiculous offer ??? My attorney says thats all I can get 
Please Help
There are several different auto insurance coverages which may apply to your son’s injuries. For purposes of this explanation, I’m assuming that your son lives with you and that his grandfather does not. My answer would change considerably if this is not the case, so let me know.
First, if the grandfather had bodily injury (BI) coverage, that would be available to your son. BI is not a mandatory coverage in Florida. Second, if his grandfather also had uninsured motorist (UM) coverage, and your son’s damages exceed the amount of BI coverage, that would also be available. Third, if you (or another resident family member) own a car which has UM coverage, that, too, would be available. UM insurance is not mandatory in Florida.
If there really is only $10,000.00 in available liability insurance, that means that either (1) the grandfather had BI insurance with $10,000.00 limits and neither he nor any resident relative in your household had UM coverage, or (2) that the grandfather had no BI or UM (you need BI to get UM in Florida) coverage, but someone in your household had $10,000.00 in UM.
If either of the above two scenarios sound right to you, then the lawyer is correct as to only $10,000.00 in automobile insurance coverage being available. What he means by Allstate’s “paperwork being in order” is that they have on file a signed waiver of UM coverage by either the grandfather, you or both– if they didn’t, they would have to provide UM coverage in the amount of the policy’s BI coverage. So if there was $10,000.00 in BI and the insurer didn’t have a signed UM waiver on file, they’d have to provide $10,000.00 in UM even if the coverage was never paid for.
If the two scenarios describe above don’t sound right to you (e.g., you know that you have UM coverage which the lawyer didn’t take into consideration) then you need to bring this fact to the lawyer’s attention — of course, he should have asked about it, so this gives me concerns about how thorough he is.
In any event, in addition to the liability coverages, because Florida is a no-fault state, your son will be covered by PIP insurance (if a resident relative — a relative who lives with your son, including you — owns a car, he’ll be covered under that policy; if not, he’ll be covered under his grandfather’s policy). PIP is a mandatory coverage in Florida. The standard PIP policy provides $10,000.00 in total coverage and pays 80% of accident related medical bills and 60% of lost wages (which I’m assuming wouldn’t apply in your son’s case). There are some options available for PIP coverage which can change the standard provisions. For example, it may have a deductible which must be met before coverage kicks in, or an extended PIP option which pays 100% of medical bills.
Finally, and probably most importantly, given the facts you’ve described, your lawyer should consider a medical malpractice claim against the hospital in Charlotte County. There is a 2 year statute of limitations on med mal claims in Florida, so you still have time to pursue this. The med mal claim would only include damages which were caused by the hospital’s negligence (assuming they were negligent), so any damages your son would have incurred due to the car accident which were not affected by the malpractice would not be covered. So, if your would have needed $20,000.00 in treatment had no malpractice occurred, you would only be able to claim the additional $70,000.00 in medical treatment in a med mal claim (which would still leave you with a $10,000.00 gap in coverage due to inadequate auto insurance). The same would apply to pain and suffering. Only that pain and suffering which was caused by the malpractice (aside from the pain and suffering your son would have had from the car accident had malpractice not occurred) would be recoverable in a med mal lawsuit.
If you lawyer immediately shoots down the idea of a med mal claim, you should consult with another lawyer who specializes in med mal as soon as possible.
over the phone my lawyer told me we should just settle case without going in trial. We are plaintiff. It was slip and fall injury case. my lawyer said case is settle for $11000, after so many e-mails and phone calls from my side to my lawyer. He was never letting me know clearly how much was original case was settle for. he was just letting me know that you are getting 5000 after all his fees and cost. In agreement between us it was 1/3 fees agreed. now after all his fees and cost its only 5000 that i get is very upsetting settlement. Now I am asking about all breakdown of settlement and he is calling me at his office and not sending me info about breakdown in mail or e-mail. since for 11000 to 5000 is like more than 1/2 that he is taking. all this makes me in doubt for him. and why he is not sending me info in detail before i go to his office, so that if i have doubt i can have checked his bill with second opinion. 1/3 of 11000 is like 7200 . Do you think 2200 is normal fees of his cost ?
You are certainly entitled to a written statement outlining how the settlement money is allocated. This should include:
While $5,000.00 may not seem like much from an $11,000.00 settlement, it sounds pretty typical to me given the 1/3 fee and the usual medical expenses associated with such a claim. I really doubt that your lawyer is trying to pull a fast one. I think you didn’t take your medical costs and reimbursing your health insurer into consideration.
When you visit you lawyer’s office, he should have a written distribution statement prepared for you which should spell all of this out. Most (if not all) state bar’s ethics rules require the lawyer to provide such a statement and have the client sign off on it before either the lawyer or the client gets paid (the money sits in the lawyer’s trust account until then). Your lawyer may not want to send you the distribution statement ahead of time because he wants to be there to go over it with you and explain everything. This isn’t that unusual. I would only be concerned if he doesn’t have a written statement available when you go in to get your settlement check. If that happens, I’d suggest not taking the check at that time and calling your state’s bar association to notify them of what happened.
First of all thank you very much for your time and suggestions. I am not following your answer exactly. Is lawyer trying to cheat me ? When it was slip and fall injury happened at my condominium. Injury was estimate actual $16000 from doctors office. Condominium has policy to award up to 5000 only and they did give that money. then i hired lawyer and was already informed about all this in detail and also doctor’s estimate. I didn’t had insurance at all. I didn’t wanted to spend any money from my pocket until i get paid. so i waited. with 5000 i got temporary help from doctor which cost 5000 so all money that condominium check went directly to doctor which was before i hired lawyer. But to fix my injury it will estimate $16000 which is still standing. What do u think in all this matter ? Do you think my lawyer can make big bill on his cost part ? Pls suggest. Thank you again.
To be clear, I don’t think your lawyer is trying to cheat you. The only way to be sure is to go to his office and review the written distribution he should have prepared, which explains where all of your settlement money is going. Your settlement may be lower than you expected due to an unknown cost, such as a medical lien of which you were not aware.
The $5,000.00 you first received from the association was almost certainly its Med Pay coverage, which covers injuries on the premises without regard to fault. Your attorney got your settlement from the liability coverage.
When you review the lawyer’s settlement distribution form, make sure that the gross settlement matches what you expected. Make sure the fee is listed as 1/3 of that amount. I don’t think that his costs should be so high as to reduce your net settlement amount to $5,000.00. So, there should be some other expense listed (most likely something medical) which explains the shortfall.
Your lawyer should be able to explain all of this to you in person. This is why I suggest going to his office to review his distribution paperwork. If he doesn’t have a written distribution form prepared, or you are not satisfied with his explanation of the distribution (say he has $3,000.00 in costs, which would be unusually high for such a small case), you should not accept any settlement money from him before consulting another lawyer or your state’s bar association.
thank you sir, thank you. If I have dispute with this lawyers bill (his cost) , do you think i can still get my $5000 check and then process on dispute ? Bcoz i wanna get started my injury work done.
This is a gray area. If you accept the check, it may be construed as you accepting his entire distribution of the settlement, including his costs. The safest thing is not to take the check until the cost issue is resolved. The next safest thing would be to put something in writing stating that while you are accepting the $5,000.00 as a partial distribution, you do not agree with the remainder of the distribution, which should be held in trust until the dispute between you and your lawyer is resolved. It would be best to have this signed by both you and your lawyer.
Hopefully, it won’t come to that — I’m hoping he has an adequate explanation for the distribution he has planned.
I have just received my lawyer’s settlement sheet. I have seen 900 charge in bill for deposition. Defendant lawyers have asked for my deposition(we are plaintiff). it was held at my lawyers office. it was for 45 – to max 60 minutes only. Do you think its 100% of amount that my lawyer paid ? or it could be just some percentage of total deposition charge ? I asked him for copies of reimbursement checks but he is not giving me that . Do I have right to see that check copy before signing ? is it my right to ask ? thank you.
$900 for a one-hour deposition seems way too high, even if your lawyer ordered the original copy (which is very unusual when the other side is the one conducting the deposition). If the other side ordered the original (which costs far more than a copy), and your lawyer just ordered a copy, this is definitely wrong. Are you sure your lawyer didn’t depose anyone? I could see a $900 bill being reasonable if he had taken depositions and ordered the transcripts.
You have a right to see the bills which support his costs. Most lawyers keep separate billing files that have copies of all of the receipts for the expenses in each case. You should see the court reporter’s bill for the deposition cost he’s claiming. If he refuses to produce the billing records, you may want to threaten calling the state bar about this.
Hi, I have a couple of questions and hoping you can help. I live in the state of florida and my childrens father is currently getting ready to settle on a work comp claim. My question is I am owed over $30,000 in back child support and was receving payments from his work comp check which have suddenly stopped, will I receive any back pay from his work comp settlement. Child support enforcement said they had notified the judge in Tallahassee that he owes, but will the be able to take was owed to me and send it to me? Thanks
As a disclaimer, I don’t practice either family law or workers compensation law. That being said, it appears from this case that the answer to your question is yes. I couldn’t find any authority to the contrary.
there was interpretor been asked for me. do you think that could have cost more. Do you think i can talk to you rather than fill up whole your blog with my questions ? its ok if you say No. Thanks
If an interpreter was hired for the deposition, that could certainly explain the higher cost. As to talking to me on the phone, I’m going to have to say no. I answer people’s questions on the blog because it may help other people who have similar issues, so it adds information to the site. I’m not interested in providing one-on-one advice to anyone (hence, my website’s name).
Hello. I have been reading but it looks like I missed something. What is your $10 plan?
See here.
I got into a no fault car accident in NY on November 2010. Till now I still never had my examination before trial due to them keep rescheduling it (other insurance). They rescheduled it 3 times now. How many times can they reschedule it? My lawyer can’t even tell me about how much can I settle for. They keep saying they don’t know. But is it possible I may not even get anything?? How many more years till this will be done with anyway? Did I go through all this trouble, is it worth it? The most info I get is we must wait till the examination before trial. Please help.
I have been attending Physical Therapy for almost a year as well.
If, by examination, you mean IME, it’s entirely up to the defendant whether it wants one and when it occurs. If it is not giving you ample notice of rescheduling (such that you miss work or are otherwise inconvenienced), your lawyer can ask the court for a protective order to stop the constant scheduling/re-scheduling or at least require that any cancellation come with adequate notice.
The court wouldn’t delay giving a trial date just because the defendant hasn’t subjected you to an IME (as I said, there’s no requirement that they even have one). Do you know whether your lawyer has yet requested a trial date (usually by filing a Notice for Trial)? Once the trial date is set, the court will set a deadline for all discovery (e.g., interrogatories, depositions, IMEs, etc.) to be completed, so that will solve your IME delay problem (they’ll either have one by the deadline or not have one at all). Has your case been mediated yet? Frequently, judges won’t set a trial date until a case has gone through mediation because most cases settle and it doesn’t want to unnecessarily tie up its docket.
It’s not surprising that your lawyer can’t tell you how much the case will settle for (that depends on how much the defendant offers). He should be able to estimate what he thinks the case is worth, however. Otherwise, how would he know whether the case should settle or go to trial? If your case doesn’t settle and you wind up going to trial, there is always the possibility that you will lose, so, yes, you may wind up not recovering anything. If the defendant has admitted fault for the accident (and is just disputing damages), you should get something at trial, but maybe not nearly as much as you think the case is worth. These risks play into why most cases settle.
As to why your lawsuit is taking so long, it could be any number of things. It may have taken you a long time to reach maximum medical improvement (MMI), which is a possibility given that you have been attending physical therapy for so long. There could be unforeseen delays in setting up witness depositions, such as the deposition of your treating doctors. The court’s docket may be crowded (criminal cases take priority over civil, causing further delays to personal injury trials).
I can’t say how much longer it will be before your case is resolved. If you were injured and the other driver was at fault, then pursuing a recovery is definitely worth it. Just hang in there. I’ve handled cases that took far longer to bring to trial, one of which took about 7 years from the date of the injury (but that case resulted in a multi-million dollar verdict — and another 18 months of appeals before we got paid). Your case is taking a while, but many cases do. I hope it turns out to be worth the wait for you.
Hi, we settled our suit with the driver’s insurance company that hit my wife (a pedestrian) for their policies limit ($50K). About 2 months ago our lawyer went and sent a letter/ uninsured motorist claim to our insurance at the time to collect the remainder amount of what he valued our claim at (Approx. $150K), since the settled amount was at the insured driver’s policy limit. What should we be expecting as far as a time frame for this to work out? I don’t believe our lawyer has heard anything back form our insurance company to date in regards to the letter.
I would also comment that all witness reports and other case materials were provided as part of the UIM claim. The driver was 100% at fault for hitting my wife in the parking lot.
If your UM policy limits exceed the remaining value of your case, it will probably take longer to settle this claim than it took to settle the BI claim. This is because both sides will actually have to work to come to a consensus of the actual value of the case, as opposed to just agreeing that the case is worth “more than $50,000.00.” Even in cases of clear liability such as yours, issues regarding damages could be enough to require litigation, or even a trial (though most won’t require a trial).
It’s too early after your lawyer’s initial demand to know whether your case is heading that way. I would have expected some kind of response by your UM insurer by now, even if it was just a request for more information. If your lawyer hasn’t heard anything back, that’s not a promising sign for a quick resolution.
UPDATE: I received a letter and copy of summons form my attorney in the mail today. It looks like we’ve put the insurance company on notice and are moving forward with a potential lawsuit.
Is the lawsuit to enforce the settlement agreement, or has your lawyer abandoned that agreement?
We’ve already settled with the other driver’s insurance company for the policy limit ($50,000). and received the monies. Now we are going after our insurer at the time for the uninsured motorist coverage we had on our policy. The driver that hit my wife, their policy limit was not enough to cover the amount that our case was valued at. We reached out to our insurer in regards to the UIM (our policy had $250,000 for person limit). The attorney has not been able to come to a settlement amount with them thus he has issued a lawsuit summons. He valued the case in excess of $200,000. We requested $150,000 from the UIM, hoping to settle for $70,000 perhaps.
It’s good that your lawyer is forcing the UIM insurer’s hand by filing the lawsuit. It’s really the only thing he can do if you couldn’t reach a settlement. It could be a while before this part of the case gets resolved. Coming up with a fair settlement amount when there are adequate policy limits is particularly difficult. Cases go to trial over pure damages issues all the time, even in cases of admitted liability. Hopefully, yours won’t be one of those.
The insurer has hired a local attorney at this point who filed an appearance 2 days after the suit was filed. Does this mean we may be in for a long road ahead?
Not necessarily. They had to hire a lawyer because you filed suit. While it may still be many months before you settle, as the defense will probably want to conduct some discovery, including depositions, the fact that they hired a lawyer doesn’t automatically mean that they’re looking to make this a long, drawn-out battle.
On 11/05/2012 the insurance companie’s lawyer filed for an extension. Not sure how long that can be in the State of CT. Then on 11/16/12 our lawyer filed a Notice not sure what that is? My wife went in back in October and filled out a deposition to submit to the insurance companies lawyer as well.
I don’t know what your question is, but you need to be more specific as to what the extension related to and what your lawyer’s notice was for if your question relates to them. There are too many things that can be extended or noticed for me to guess.
As far as the deposition, I’m not sure that this is what your wife did, as depositions are not “filled out” and submitted. That sounds more like interrogatories.
Happy New Year to you! On 1/8 the Defendant (insurance company) filed an Answer and Special Defense and then also a Claim for a Jury of 6.
Does this look like we may be headed to court or is this a sign that a settlement agreement may be reached soon?
Thanks.
Well, you’re already in litigation if the defendant has filed an Answer. As to whether this is a sign that you’re going to trial or if you’ll settle, it’s really neither. The defendant only has 20 days from being served with your Complaint in which to file an Answer, so all this means is that your case couldn’t be settled before a lawsuit was filed (or within 20 days thereafter). I doubt that a settlement will be reached soon, though, because frankly if the case could be easily settled it would have been prior to your lawyer filing a lawsuit. It’s likely that you’ll have to go through some discovery, including answering interrogatories and attending a deposition, before your case is in a position to be settled. That could take several months. The good news is that most cases settle, even after a lawsuit is filed, so the odds are in your favor that you won’t have to go to trial.
I am from California,in 2005 I was in a accident. I settled my case in March 28, 2012. The amount is over 250,000 the lawyers said social security had to clear the check. I do not owe anything to social security or any other third party. My lawyer told me I had to wait 90 days before social security clears the check. I want to know if that is correct? Do you know how long it is supposed to take, this is a workers comp settlement from a private company not a government company.
Have you received or are you currently receiving social security disability benefits?
I was receiving workers comp then they stopped it, then I started receiving disability for two months. After two months of disability I went back to receiving workers comp. I only received disability for a total of two months. It was roughly 4,800.
But to answer your question, no I am not currently receiving any type of benefits.
It could be that your attorney needs confirmation from the SSA that they are not contending that any of the $4,800 they paid needs to be reimbursed from your settlement. Typically, if you receive SSDI benefits and later receive a workers compensation settlement which includes the same time period, you have to reimburse the SSA from the comp settlement to the extent that the benefits overlap.
If your comp settlement doesn’t include the time period during which you received SSDI, it could be that your lawyer is just making sure that the SSA is aware of this fact and agrees that no reimbursement is owed. While the delay is obviously annoying, it will probably save time and hassle in the long run, as it could get ugly if the SSA demands reimbursement after the settlement is distributed. Checking with them first avoids this.
How long does it take to usually settle the social security process? How long do you think it’ll take for me to actually get the settlement check?
I really can’t answer that. I’m not a comp lawyer, so I have no personal experience in resolving SSA liens in comp cases (much less ones in California).
Thank you for your advice, it was helpful. Thank you for your time. God Bless
I was plaintiff. Defender ask my deposition and ask me if i need interpreter, and i said yes. and Just under 1 hr depo its $900 ?
This is why you need to see the invoices supporting your lawyer’s costs before signing off on the distribution. If he refuses to show them to you, take it up with the state bar.
I am part of a large class action suit in California against my ex employer. The case has been settled and the last court date was the end of may. When I called the company that is handling the questions and distribution of paperwork she let me know not to expect to hear anything for 60-90 days. Does this mean anything in regards to when we will be getting our settlement checks or is this time when they have to issue the checks? ( we had received information packets with the $$ amount approximate in them )
I am not familiar with when companies have to issue the settlement money etc.
Thank you-
This may just be the date by which they figure out exactly how much each class member will receive. I can’t say if you’ll be paid during this time period or even if the checks will be cut by the defendant. Class actions tend to have time tables that are quite different than non-class cases. This is a question only your lawyer will be able to answer, as there may be deadlines set forth in the settlement agreement which will control this.
I am located in Boston mass. I had an auto accident which was proven not my fault but the other driver had no insurance now i have been to two meetings 1 at my lawyers office and 1 and the insurers office. I have bills coming to me saying i owe money to the hospital and physical therapy which my insurer was suppose to take care of.(bodily injury $40,000) also the damage done to my car i had to pay out of my pocket. Its been a 2 year settlement so far and i recieved and heard nothing from either side even though i have left messages with my lawyer. So my questions are, has my lawyer taken my money, Did the insurer decide my case is not real, and what do i do now get another lawyer to take this lawyer to court because i know several ppl who have had the same problem. Thankyou
First, I doubt that your lawyer has taken your money. Your insurer would not settle your claim without having you sign a release. So, if you haven’t signed a release, your case hasn’t settled. Also, taking a client’s money is a fast way to get disbarred and it’s pretty easy to prove, so most lawyers (unless they are addicts) would never do this.
That being said, before moving on to another lawyer, I suggest reading this article about what to do when your lawyer won’t return your calls. If you fire your lawyer, you may still have to pay him, so it’s worth trying to work it out first.
As to how your coverages should play out, your PIP insurance should have paid the first $2,000.00 of your medical bills automatically. If you don’t have health insurance it should have paid up to $8,000.00 in medical bills total (if you have health insurance in Mass., it is primary to your PIP for claims over $2,000.00).
If you have the minimum mandatory Uninsured Motorist coverage, which in Mass is known as “Bodily Injury Caused by an Uninsured Auto”, your coverage would be $20,000 per person/$40,000 per accident. This means you would only be able to recover $20,000, not $40,000. The $40,000 limit applies if multiple people are injured in the accident who are covered by the same policy — each person could recover no more than $20,000 individually, but all claims together could not exceed $40,000.
Your insurer would likely not pay your medical bills on a continuing basis under the UM coverage (unlike your PIP coverage). Rather, it would try to settle the whole UM claim at once, based on a demand from your lawyer. Your lawyer may not have sent a demand yet (which is something you’d need to discuss with him). I doubt that your insurer just decided that your case isn’t real. It sounds like it just hasn’t had its feet held to the fire about settling your case.
If you ran out of PIP insurance (and didn’t have health insurance) and still needed medical care, your lawyer should have secured your medical treatment through a letter of protection, which would keep your medical providers from sending collection agents after you. Not all providers accept letters of protection, so it may not have been possible to do this for all of your medical providers.
Assuming that you’ve reached maximum medical improvement, you should be ready to settle your UM claim. If you still can’t get in touch with your lawyer after following the advice in the article I referenced above, you should send him a letter informing him that you assume from his lack of communication that he has abandoned your claim and no longer represents you. State that unless you hear otherwise within 10 days, you will hire another attorney. Then just find another lawyer to take your case. You may want to read this article which should help in screening potential new lawyers, so you don’t wind up with another one who’s too busy to handle your case.
I have met my lawyer yesterday. He admitted that deposition bill is very high. I asked how much was otherside lawyer bill for depo and he said it was $350. I am fighting for it, and if they will return then i will give you back. But there and then he wanted to sign settlement. Now my question is, if deposition people return money to my lawyer, do you think he will give me back ? 2nd think I had one medical bill for $300. I have submitted that bill to him during my proceeding. Yesterday when i gave him that bill he said now settlement is done, but i will talk to other side lawyer, and see if then can do anything about it ? after my little upset argument he just take out check book and give me $300 check. Should I think he favour me by giving money or its anyway my clear right to get reimburse for my out of pocket medical bills ?
pls suggest sir.
This whole situation with the deposition expense sounds fishy. Did he actually show you the bill from the court reporter? If the court reporter really did overbill and your lawyer paid it, I would expect that he will pay you the difference when he gets reimbursed by the court reporter.
As to the $300.00 medical bill, it sounds like he just forgot to include it in the distribution and is now paying it for you out of his own pocket to keep you happy (which is a nice thing to do). Technically, he could have just fixed the distribution to take that $300.00 out of your side of the settlement, as you are responsible for your own medical bills and you agreed to the total settlement amount. I doubt that he would try to get his money back from the other side — it’s just not worth it to him.
So, on the one hand, the deposition issue is cause for concern. On the other hand, your lawyer paying that $300.00 bill out of his own pocket was a nice thing for him to do. Based on the way he handled these two different issues, I really can’t get a good feel for whether he was trying to pull a fast one or if the deposition issue was really a legitimate overbilling mistake.
It sounds like he knows that you’re unhappy and suspicious, and he’s doing what he can to fix that. We’ll see if that deposition reimbursement comes through. I wouldn’t let the issue go, as it could be a few hundred more dollars. If you know the name of the court reporter, you may be able to get the billing info from them directly, if your lawyer didn’t show it to you.
thankyou
I am located in Pennsylvania and sued an insurer in small claims court. The insurers attorney made a settlement in writing and I made a motion with the court to dismiss the case with prejudice until the insurer fulfills the terms of the settlement and gave the court to retain 30 days jurisdiction to until the settlement was completed. As part of the settlement agreement, a general release was to be provided by the insurers attorney within a few days after I filed the motion. It has been 10 days and have not received the release. I have contacted the attorney via fax and email and no response. I concerned about the turn around time from receiving the release and receiving the money for the settlement. At this point, it appears to have reached a critical point where getting paid per the agreement will pass the 30 day jurisdictional time limit set in my motion. I have been notified by the court that a court date has been rescheduled exactly 30 days from when I filed the stipulated dismissal. I presume this was done to assure the insurer meets it’s obligation of the agreement they made, if not game back on. Did I mess up? Is the insurer having a change of heart – am I being dragged along until the last possible moment – is there something I am missing here?
No, you didn’t mess up. It sounds like you did exactly what you were supposed to do. I’d bet that the delay in the release is due to simple laziness by the defense lawyer (a small claims case probably isn’t high on his priority list). Try giving him a call and letting him know that the court date is coming, so you’d like to get the matter resolved before then. I’m sure his client doesn’t want to have to pay for him to unnecessarily attend another hearing.
If it gets close to the hearing date and you’re sure it won’t settle in time, you can prepare a motion either to reopen the case or to extend the court’s jurisdiction another fixed period of time (depending on how optimistic you feel). You could also file a motion to enforce the settlement agreement, if it goes beyond the agreed time for settlement.
Just don’t let the 30 days go by without letting the court know that the settlement hasn’t been consummated.
I live in Illinois. On May 18th, 2012 I signed an agreement for a settlement with the United States Government regarding an automobile accident that I had been in. Since we reached a settlement, we had to drop our suit with the Federal Courts before a check could be issued. That was done on May 23rd, 2012. It is now 6 weeks later and still no settlement check has been issued. Is there a time frame that the Federal Government has to abide by in issuing settlement checks?
I’m not aware of any particular regulation that requires payments under the Federal Tort Claims Act (I assume that’s how you sued) be made within a certain period of time. I do know that it typically takes the Financial Management Service of the Treasury Dept. around 6 weeks to process payment after it has received all necessary settlement forms from the defending federal agency and the claimant (your lawyer probably had to fill out an FMS-197 form). So, unless there are any circumstances which could cause delay (such as a debt you owe the federal government, which would be deducted from the payment), you should be getting a settlement check very soon.
Attorney requested a change of trial date four months ago and between the first and second trial date I gave my attorney a settlement figure I would accept. Defendants attorney agreed to the figure with a lien stiplulation that would affect my future ability to make a medical claim against my own insurer if I needed further treatment whether it is 5 years from now or 25 years from now. I certainly understand releasing the insurer from any past and/or future claims and/or liens that have occurred for this particular injury but not to the extent that I would never make a claim against my own insurer forever. Two months ago I again told my attorney that I would not agree to their settlement language as it was totally unreasonable and I felt we should prepare for court and secure medical treatment depositions videos from my medical providers. I have already had 3 major surgeries due to this accident including replacement of body parts. Now I just found out that 2 days after I notified my attorney to proceed to trial he notified the court that the case had been settled. He is now insisting that I sign the settlement agreement that I refused to sign 2 months ago which was the same one I refused to sign 4 months ago and said that since I offered a figure the court would consider the matter closed. How can this be if we could never come to language terms with the defendant’s attorney?
A court will enforce a settlement agreement based on a plaintiff’s monetary offer as long as the defendant’s proposed release comports with the usual and customary terms for settlements in your jurisdiction (this is presumed to be part of the plaintiff’s offer unless otherwise specified). The language you reference requiring that you not use your health insurance for future accident-related treatment sounds far from “usual and customary,” making the defendant’s “acceptance” of your offer more akin to a counter-offer, which you are free to reject. Using your attorney’s logic the defendant could have inserted a confidentiality agreement with a $1 million liquidated damages clause (you pay that if you breach the confidentiality) and you’d be forced to accept it, even though no one in her right mind would consider that a reasonable condition of settlement.
Don’t let your lawyer bully you into taking the settlement. Let him try to bully the defendant into changing the language of the settlement agreement. Make sure he notifies the court that the notice of reaching a settlement agreement was filed in error, as the court will remove you from the trial docket (if it hasn’t already) if he doesn’t.
Hi!
My sister has settled her case, and has signed the release forms about 2 months ago, she just called her lawyer to see what is taking so long for her to receive her check, and her lawyer told her it’s not her office, but the other guys lawyer holding up the check.
What does this mean?
The state my sister lives in and where her case and settlement are in, is New York, Long Island to be exact.
It means that your sister’s lawyer is being lazy. Under NY CPLR 5003-a, a private defendant who settles a personal injury case has 21 days from the date the signed release and stipulation for dismissal are tendered to it (mailed by certified mail or delivered personally) in which to pay the settlement. After that, the plaintiff can enter a judgment, without notice to the defendant, for the amount of the settlement, plus post judgment interest running from the end of the 21 days.
So, your sister, at a minimum, is entitled to interest on the settlement starting from 21 days after her lawyer sent out the settlement documents to the defense lawyer. To press the issue, her lawyer can enter a judgment on the settlement which would allow him to use a host of legal means to get the money (levy on property, seize other assets, etc.).
I can see waiting a few days beyond the 21 just to avoid the headache of filing a judgment and starting proceedings to collect it, but 2 months is too long to just sit around and wait for the defendant to pay.
I assume that this case was against a private individual, and not a municipality or the state. The state and its municipalities get 90 days to pay under subsections (b) and (c) of CPLR 5003-a.
Hi! Thank You for the reply back, I really appreciate it.
Yes, it was a guy that hit her car.
And she’s been waiting a long time just to get her money, but she doesn’t know how to talk to a lawyer.
OK, My and her friend just received a letter stating that the other guys insurance company has paid their med bills.
Does this mean they are about to receive their money?
And if so, how soon?
Did the other insurer pay the bills directly, or did her lawyer pay the bills with settlement money he received from the insurer? Both of them indicate that checks are on the way, but #1 might mean that her lawyer hasn’t gotten his check yet (so it may still have to clear his trust account), while #2 would indicate that her lawyer is ready to send her a check now. This is assuming that all of the medical and insurance liens have been resolved.
Thank you!
Yes, all the medical bills have been payed, I asked her, and she said, on the paper, her balance or medical bills are remaining “0″, so I am assuming that means all of her medical bills are payed.
She is waiting, and wondering how long she has to wait for her check to come, I told her any day, am I wrong for telling her this.
She just wants it, because she has bill and children that needs things. Sorry if I am being annoying.
Typically, settlement checks are made out to both the client and attorney, so if her attorney hasn’t called her in to sign the check (for depositing in his trust account), he may not have gotten it yet. So, you may have jumped the gun on telling her the money’s on the way. The only way to know for sure is to hear from her attorney that he received the check.
what is the medical limits for the state of Louisiana? i was in a car accident on 5/24/2011 and been going to therapy for about 6 weeks. once the therapy is over how long should i wait to call my lawyer to ask about the total of all the bills from every medical place that i have been? will my lawyer tell me the whole amount that will be settled and can i agree or disagree before any other actions go on? i was rear ended by an auto-zone worker who admitted fault.
I’m not sure what you mean by “what is the medical limits”. If you have medical payments (“med pay”) coverage on your own auto insurance, the limit would be reflected on your policy. As to how much you can recover from the at fault driver, there is no hard limit — it depends on the amount of his bodily injury coverage (and personal assets).
Instead of waiting a specific amount of time after your therapy to ask your lawyer how much your total medical bills are, I’d suggest just telling your lawyer that you want him to contact you before he sends out the initial settlement demand. When he’s ready to send out the initial demand, he should have all of your medical bills. At that time you can ask him for the total medical bill amount and use that figure to determine whether to approve the settlement demand he proposes.
Yes, your lawyer does need your approval of the amount before making a settlement demand. Of course, if you tell him that you want no less than $10,000.00, he can make any offer that equals or exceeds that without checking with you — he’d only have to get your approval to make a demand or accept an offer from the defendant which is below $10,000.00.
In short, my suggestion is to tell your lawyer not to send out any settlement demands until you have discussed the full amount of your medical bills and you have given approval for the amount demanded.
i settled civil case against pd in michigan in a federal court in front of a judge feb 21 2012 & signed confidentiallity release form march 21,2012 &still havent received a check from my lawyer..how long does he have legally 2 send my check?should a file a grievance against him?plz help
First you need to figure out whether your lawyer has even received the settlement check yet. I did about an hour’s worth of pouring over the Michigan state statutes to see if there was a particular law governing timing of settlement payments by defendants (as there are in many other states, usually containing interest penalties for late payment). For the life of me, I couldn’t find one (of course, I’m not a Michigan lawyer, so it’s possible that I just missed it). If there truly isn’t a particular statute setting a time frame for the defendant to pay a settlement, and your settlement agreement doesn’t specify one, a “reasonable” time frame should be inferred. I’d assume that most courts would consider the time that’s passed since March of 2012 to be longer than “reasonable”. So, if the government agency hasn’t paid your lawyer yet, he can move to enforce the settlement agreement in the federal court, and possibly as a separate action in state court. Given that it’s a government agency, a writ of mandamus may be available as well. This is a court order forcing a government agency to perform a ministerial action over which the agency has no discretion. So, while a court can’t order an agency to settle a case (because that involves the agency’s decision-making authority), it is able to force a state agency to cut a check after the settlement decision was made.
If your lawyer has received the settlement check, ethically he needs to pay you as soon as the money is available in his trust account (it usually takes no more than 10 business days to clear). He can withhold payment if there are liens against the settlement that need to be resolved, but if the total possible lien amount doesn’t exceed your share of the settlement, he should issue you the excess amount as a partial distribution now, and pay you the remainder (if any) after the liens are resolved.
What is your lawyer’s explanation for why you haven’t been paid yet? I’d never recommend filing a bar grievance against a lawyer without hearing his explanation first.
his excuse is that he’s been out of office but,my check has been on his desk since may, shouldnt his assistant,office manager/or paralegal be able to process it? isnt there a time frame that he should abide by?
i should also add that ever since may,when i ask about my money he always says a couple more weeks & he also suggested splitting my money evenly with him b4 i actually settled,even tho he’s only supposed to get 42%
He’s been out of the office since May? That excuse is pretty hard to swallow. While his office may not be able to endorse the check without him (some have stamps for this — some don’t), I have a hard time believing that he hasn’t had the time to sign a check since May.
As to the fee issue, was your case a civil rights matter (maybe a Section 1983 case)? I ask because attorney’s fees are often awarded in such cases. If so, was there any provision in the settlement agreement about how much of the settlement was to pay his attorney’s fees? Most civil rights lawyers will have a contingency agreement that provides that they will be paid the greater of: (1) an attorney’s fee award under the civil rights statute or (2) the fee percentage as applied to all damages (including the fee award). So, in cases where the civil rights fee award exceeds the plaintiff’s damages, attorneys can recover more than the contingency percentage. For example, if I work many hours on a civil rights case which has a fairly low value, the plaintiff’s damages may be $10,000.00 but the fees awarded could be $15,000.00. Under a fee agreement such as I described above, I’d get to take the full $15,000.00, even though it’s more than the 40% fee I’d collect otherwise.
If your settlement agreement doesn’t specifically allot a portion as attorney’s fees, he is stuck taking the agreed-upon percentage, however. Also, if your fee contact only refers to “court-awarded attorney’s fees”, I doubt that he’d be able to take a fee amount that is specified only in a settlement agreement (as it is not “court awarded”). He’d still be able to take his percentage from the whole settlement, however.
After reviewing your settlement agreement and fee contract, if you are convinced that he is still owed only the 42% (which itself seems like an odd number), don’t cave in. Write him a letter confirming all that he told you (about the check sitting on his desk and him wanting 50% of the settlement) and letting him know that if you don’t get your agreed-upon amount within 14 business days (this allows time for the check to clear his trust account), you will be contacting the state bar.
thank you so much
i spoke with my lawyer 7/25/12 & to no surprise he’s gonna be out of office for several weeks again but,this time he says he’s checking for liens although he knows that i never went to the doctor…are these more stalling tactics on his part?becoming depressed
I’m still not buying this whole “I can’t deposit checks because I’m going to be out of the office for weeks” excuse. It may be time to threaten taking this matter to the state bar.
Dont know how to really start this, but here it goes. I have a relative that settled on a personal injury settlement, millions in Missouri. I have a new business venture in another state that my relative wants to invest a couple million into this venture.
I was told the settlement papers were signed May 2011 and should receive funds around June 2011. For some reason or another, there was a delay of funds released by defendant insurance companies. When funds were finally released to a small bank of my relatives, the banker said the funds will be detained for quite some time. Why would that be possible? I was told by the bankwire dept from the bank, the funds are going to be detained for quite some time… heard this with my own ears.
As time passes, couple months later they changed banks and had lawyer move funds to another “small” bank. Again, more delays. During these past few months, ive invested several thousands for this new venture until the large funds from the settlement arrives.
But as months go by, still no available funds. So now I m thinking this settlement is not for real? But I have witness’s and relatives that see my potential business partners car shopping, signing papers for new homes. They have seen , including myself with my own eyes and talked to their bank.
They would win an academy award for the crying and emotions showed when the funds still came up unavailable to my other relatives. And for the time invested and exhausted time put into this, it seems to be real. There are confirmations of meetings with lawyers etc.
So my question, is how do I find out this settlement is real without upsetting my relative (for not believing) and risking millions on investment in new company?
Any thoughts or questions you have would be very helpful. I m going CRAZY. Would any illlegal activity , judgements, etc from their past hold things up??
I’m afraid that there’s really no way to check on whether the settlement was made as your relative represented without your relative knowing. The vast majority of settlements will be confidential and won’t appear in any court record. If your relative actually filed a lawsuit against the defendant, you can usually confirm the existence of the lawsuit by looking it up on the clerk of court’s website in the county where it was filed (for federal court, you’d need to gt a PACER account to search court filings, but these are pretty inexpensive). Aside from that, you’d need to ask the relative to see the settlement agreement or bank statements, which isn’t very subtle.
As to what could actually be holding up the funds, it must be something pretty unusual. With new federal banking laws, most deposits (even large ones in brand new accounts) can’t be legally held by the bank for more than 9 business days. As far as illegal activities or judgments being the culprit, such things could result in a seizure or freezing of the accounts, which is always possible. Of course, if that’s what happened, how is this relative spending money on cars and houses? You may be able to find out if there are any liens filed against the relative by checking public records filings, again online at the clerk of court’s site. Online property records may also be a place to look, to see if the real estate your relative purchased is subject to a mortgage (if not, then he paid cash — which indicates that he’s got money).
Hello i was in a horrible car accident (I was actually a pedestrian in a crosswalk who was struck by a drunk driver going over 40 mph, in which i was thrown over 28 feet, landing on my head in the middle of the street!) I suffered many permanent and semi-permanent injuries both physical and mental (am currently bound to wheelchair) anyway after a lengthy 3 year process the insurance co. of the driver at fault finally settled about 4 1/2 months ago, i signed the release,CHECK! my lawyer confirmed he recieved the check from the insurance co.CHECK! i was told by my attorney the check cleared his trust acct. CHECK! all of these things haven taken place over 3 months ago…I do want to mention that i do have several liens (one large one from a hospital, below $100,000 and 1 small one from a dentist for around $2,000) also he did say he was going to negotiate those down…..no my question is how long should this process really take? (my portion is well above my attorney’s fees, liens etc) so that isnt the issue, the issue is this is taking much longer than i expected, also my attorney told me verbally the day we settled that the whole process would take no more than 2 weeks (we are going on 4 months now) and that was with him knowing all the details of the case, every part of the sequence up until now has gone very fast , what I mean is everything up until my attorney got a hold of the money…..I have been calling everyday and the receptionist says he isnt in, and i leave message after message (he has returned my calls but ony 2 times in the last 2 months) when i finally DO talk to him he says that they are negotiating the bills down and this and that, i just have a feeling from our conversations that he is B.S.ing me…i read what you wrote about asking for a “partial distrubution ” and that will be my next step, but I am wondering how long this SHOULD take and is there an actual legal limit to how long my attorney can hold on to my settlement money well after the check has cleared his trust acct.??? i.e. lets say i am in the same position 4 months from now is there a legal action i can take?? thank you very much for your help, this last 2 yrs has been the definition of HELL, i wouldnt wish it on my worst enemies and now that its over I am relieved, but at the same time its NOT really over because i dont have the money….and for now my life is stuck and I cant move, i cant work obviously because im disabled and my 6 months of state disability ended a year and a half ago, so i have NO income at all! once again thank you again!
Normally, negotiating liens can take anywhere from a week (if you started before the case settled) to 2 months (if the insurer is extremely slow). Medicare and medicaid can take a lot longer, and there’s not much a lawyer can do to speed those two up, aside from nagging. I’m glad you received enough for a partial distro to be doable. That should take some of the financial pressure off until the rest of the lien issues are wrapped up.
Your lawyer really doesn’t have any incentive to hold on to your money, as the interest generated on lawyers’ trust accounts doesn’t go to them — it goes to state bar organizations like legal aid (service for the poor). Also, your lawyer can’t pay himself until he pays you, so his fee is tied up in the trust account, too. He may just be running into more resistance (or delays) with the negotiations than he anticipated. Aside from taking over the negotiations yourself, which I don’t advise, there’s not a lot that can be done aside from ensuring that your lawyer is being diligent in trying to get this resolved. Even if you took over the negotiations, your lawyer would still hold the funds from the trust account to avoid any personal liability he might incur should you take the money and not repay the liens.
hey thank you again for the advice…but like I said before it has been well over 3 months now since the check was received from the insurance co., the check cleared the trust acct. and negotiations were started….you said that those things should take 2weeks to 2 months either way i am about a month and half past that….to answer you NO there are no medicare or medicaid liens involved….also i want to let you know that I did/do plan on asking for a partial disbursement….the problem is I cant get my lawyer to respond to me on either email or the phone ( I have been leaving messages with the secretary every day now for at least 3 1/2 weeks with no calls back) so I havent been able to get him on the phone in order to ask for the partial disbursement (i have asked the receptionist but she said she cant authorize anything like that) so now what do I do??? I am suffering and there is A LOT of $ involved here, I am really getting the feeling that something shady is going on here….i mean basiclly my attorney has around $100,000 of my money (after his conting. fee, legal fees and FULL medical bills) there is still that much left over (after medical bill negotiations there will probably be A LOT more even than that) but he wont even talk to me! you seem to be giving my attorney the benefit of the doubt that he ran into unseen delays on medical bill negot. BUT! it isnt like I talk to him every day and he keeps telling me the same thing like “ok like I told you yesterday and the day before and the day before that, there have been a delay with the hospital ok!? Ill call you as soon as its ready!” and I dont get the hint and continue calling every day and just bugging the crap out of him….no its not like that scenario at all, I have only gotten a call back maybe 2 or 3 times in the last 4 months and I havent gotten one of those in atlest 3 weeks and thats after calls to his office every day! if he isnt doing something unethical why cant he take the time to call me BACK maybe once a week to give me the status of my $???? I mean he made/makes over a few hundred thousand dollars off of my pain and suffering for the rest of my life and he cant do me that small courtesy??? let me ask you this then how many more weeks or months of this should I put up with before taking SOME type of action? and what kind of action should that be???? please, please help me i am stuck and cant do anything right now!
If it seems like I’m giving your lawyer the benefit of the doubt, I am — but with good reason. Unless he’s committed the most serious of ethics violations (the kind that gets lawyers disbarred), he doesn’t get paid until you do. So, he’d have every incentive to resolve the lien issue and pay you as quickly as possible. He doesn’t benefit from keeping your settlement in his trust account — the interest in that account doesn’t go to him. Few lawyers are dumb enough to steal from their clients’ trust accounts — it’s too easy to get caught and will cost them their licenses if they do. That’s not to say that lawyers don’t do this. I just tend to assume that they aren’t doing this until there’s absolute proof that they are.
As to the phone call issue, I suggest you read this article. If the advice in this article doesn’t work, then it’s time to worry and contact the state bar.
My father won a law suit and has received a payout which is in his attorney’s trust account since May 2012. A trust was recommended for him as he sustained some brain injury which impedes his ability to process information and he has won a sizable amount (almost a million) but has only received the insured payout so far. We were waiting on another attorney, recommeded to us, to draw up the trust papers since the payout in May. Finally, on July 9th, once we realized how long it was taking, the cost with the amount ($2-3000 for the trust, $30,000 payment), and that he may never received more than this initial insurance payout, we asked to forgo the trust acct and have the $ payed out. We stated that if he received a larger amount at a later date, that we would then get a trust acct set up for him. We have been told the $ are ready to release with no leins on it. Four days after we requested the money be paid, we were told that the paperwork for the trust had finally been filed. First, did the attorney act ethically by filing the paperwork after we requested to no longer have the trust? Second about how long does it usually take to get a trust through the courts and access the $. My father is in need of only a small portion (about $6,000) at this time to take care of some bills due to problems with his social security and workmen’s comp payments. They did send out about $3000 in May to help with his ongoing financial issues.
Was your father rendered legally incompetent due to his injuries? If so, was someone appointed as a guardian to handle his legal issues? What kind of trust was set up for him and who will be the trustee?
Was the paperwork for the trust filed before you requested that the process be stopped? You said you were told that it had been filed 4 days after you requested the payout, but when was it actually filed? If the person who had the right to control the legal matters for your father (himself or his guardian) instructed the lawyer not to proceed with the trust and he then went forward with it anyway, I would suspect that this would be an ethics violation (unless there was some court order requiring the trust be established).
On the rare occasions when I’ve had to have a trust set up for a client, I always farmed that out to a probate lawyer (as it sounds like your lawyer did), so I really don’t know how long it will be before the money can be paid out. I would think that would depend on how long it takes the check to clear in the new trust account and how efficient the trustee is.
Thank you for your help. I’m not sure what type of trust it is. The trust was advised to make sure no one could take advantage of my father but not ordered. My brother and another attorney are the trustees at this time. He was not considered incompetent but rather seriously injured which impedes his self regulation and cognitive reasoning (which in turn make him impulsive and at risk to be manipulated). We just received a copy of the filings, so I will be checking the dates. However, I doubt that we would be able to prove anything since my father did not put the request in writing but simply called his attorney and requested the money be released and to put together a trust if the other money is paid. This was very helpful, however, thank you very much!!!!
My sister in law and family (4 kids) were hit in a car accident. My SIS and niece sustained worse injuries. They go for mediation on Friday. If the kids money goes into trusts is the attorney fees taken off top or are they all taken out of the actual cash settlement my SIS receives. Also, what is the difference in asking for settlements for each of them vs “global”. Thanks
The attorney will take his fee out of each settlement. For the kids, it will be taken out before the money is paid into their trusts.
A global settlement is one which resolves all claims, which is usually the goal of the defendant. An insurer doesn’t want to settle 4 out of 5 claims and still have to pay defense costs for the fourth to go to trial (the added cost of trying all claims won’t usually be that much higher than defending just one).
I’m hoping that the attorney involved isn’t using this term to mean that he will ask for an undivided lump sum for all plaintiffs to divide on their own. This presents serious ethical issues for a lawyer representing multiple claimants under normal circumstances, but when 4 of these clients are minor children of the 5th, it’s even more of a quandary. Who decides how much each plaintiff gets? The lawyer? He has a duty to represent each of the client’s interests to maximize each one’s recovery. By suggesting that one get more than another, he is basically accepting an adversarial role against the lower-paid client. In a case where all the clients were adults who could make an informed agreement to accept a certain percentage of the settlement, this wouldn’t be as bad (but should still be avoided). When only one is an adult, who presumably speaks for the other 4, this is very dangerous ethical territory.
While I’m sure your sister-in-law has her children’s best interests at heart, her financial interests compete with the children’s when it comes to dividing up the settlement. Depending on the size of the settlement, it may be necessary to have guardians ad litem appointed to represent each child’s interest, and court approval of the settlement. Of course, this may seem academic, as it’s likely that she’d be allowed to act as trustee of the children’s money anyway, but her role as trustee places a fiduciary burden on her which could result in liability if she abuses it. If she’s able to divert the lion’s share of the funds to herself to the detriment of the children before the trusts are funded, she would avoid that fiduciary liability, but still gain financially.
So, while I’m not opposed to a global settlement if it that term is being used in its traditional sense — to resolve all claims — I am very wary of the ethics issues involved if the lawyer is using it to mean “taking one lump sum to be later divided among the plaintiffs”. It would be far preferable, and much more ethically sound, to establish the settlement values of each claim at the mediation based on the individual merits of each case. While the goal should be to settle all claims, if that’s not possible, one client’s claim should not be short-changed just to benefit the others. If each plaintiff had his or her own lawyer, that would never happen — so the plaintiffs’ lawyer should act like he’s settling 5 different claims for 5 different clients, and not settling one claim for one family.
Thank Your help.
I went to mediation with my former employer and we reached a settlement agreement. Both parties signed the settlement/confidentiality agreement that same day and the W-2 and 1099 their attorney requested was sent over the next day. According to the terms of the agreement THEY drafted they were supposed to pay the settlement amount within 15 calendar days after receiving my W-2 and 1099. Their 15 days were up as of July 17th and I still have not seen anything! My attorney keeps getting the run around since they are a huge law firm that their attorney is out of the office, etc.
Am I entitled to any other form of compensation since they have clearly violated the terms of the agreement that was agreed upon by both parties? I am in the state of CA.
Thanks!
I’ve looked before and haven’t been able to find any California statutes governing the time for payment of a settlement. If your settlement agreement doesn’t provide a remedy for untimely payment, such as interest, your lawyer would be forced to file a motion to enforce the settlement agreement. Unfortunately, that action will probably take as long (if not longer) than just waiting for the check.
If there’s a next time, make sure that the agreement itself contains a clause requiring interest for untimely payment.
My sisters friend called their attorney today and asked, when they were going to get their check, and all the attorney told them is that it’s coming, it’s coming.
They don’t know if it is really coming, or is she trying to pacify them or is the check on the way to them.
I don’t know. The lawyer would say it’s coming under either scenario (it’s really coming or he just wants to pacify her). I can’t think of a reason why her lawyer would want to delay the process, so the hold up is probably on the defendant’s end. Most procedures available to force the defendant to pay (e.g., filing a motion to enforce the settlement agreement) take so long that her lawyer would probably get the check well before it got before the judge. Hopefully, your sister hounding her lawyer is prompting him to hound the other lawyer as well.
Thank You so much, I really appreciate your time in answering my questions.
It has been two weeks since my attorney called and told me my case was settled, I am living in the state of Florida,he said they are working with the hospital and insurance company to see what liens are there my bill do not enen add up to eight thousand dollars. I want to know how long will it take to get that info resolved and how long before I get those papers so I can sign them and received a check.
If you haven’t received a release to sign from the defendant, the 20-day clock on it sending you a check hasn’t started running yet. Unfortunately, there is no deadline for them to send you a release unless you specified one when your case was settled (which, unfortunately, practically nobody does). Your lawyer just needs to pressure the defense attorney to send over a release. It really shouldn’t take more than 2 weeks.
As to the liens, these can usually be resolved within 30 days. If they are going to take longer, you can ask your lawyer to hold just enough in trust to cover the full lien amount and make a partial distribution of the remainder (after fees and costs) to you while you wait.
Also, don’t forget that you’ll have to wait up to 10 business days after your lawyer gets the settlement check for it to clear his trust account before any money can be disbursed.
Thank you very much for your help. I have since spoken to my attorney to see if I can get a partial distribution since I am in a financial bind,because my husband passed away on Feb 2012 and I am in a dire need,he told me it is nothing he can do to give me a partial distribution, because he is trying to sought out the medical liens because he stated that they are trowing a lot of numbers out there and some of them do not make any sense but I want to know if that is just cause why he cannot give me a partial distribution.
Thank you
If your lawyer can’t currently determine the maximum possible amount of your outstanding liens, he won’t be able to do a partial distribution because he won’t know how much to hold back. Normally, a lawyer can figure out fairly quickly what the maximum amount is by looking at the total amount claimed by each lienholder. However, if some lienholders have not provided lien amounts yet, or have been unclear in the total amount claimed, he can’t figure out what the maximum amount is yet. However, once he knows the maximum amount of all liens, he shouldn’t make you wait until he negotiates them down before disbursing the portion of your settlement which exceeds that amount, given your financial needs.
If it is possible that the maximum amount of liens equals or exceeds your share of the settlement, then a partial distribution would never be possible. You would have to wait until he negotiated the liens down before you are paid anything.
I know for a fact that my liens are not more than $6,000,because most of my medical bills were paid by my insurance company while i was employed,the lien they are talking about is my out of pocket expense and my settlement is ten times the liens.
Actually, you’re probably going to have to pay back your health insurer for the bills they paid, as well, so take that into consideration.
Maybe I am missing something why will I have to pay back the insurance company when I was working and paying insurance. I have been unemployed since 2010 my injuries was caused 2007.I was hospitalized for seven days in 2007
You’d have to pay back the health insurer because your health insurance policy requires it. Look for a provision regarding reimbursement or subrogation. If a health insurer pays for medical treatment necessitated by a third party’s negligence, it is entitled to be paid back if you make a recovery from the third party. See the link in my last comment to you.
Thank you very much for enlightening me on this complicated issue.
i won a settlement for a couple hundred thousand in April of 2011 its now August 2012 shouldn’t i have received my full out payment by now even if there were liens against it?
It would be very unusual for it to take this long to resolve lien issues, even from Medicare, which is notoriously slow. Did your lawyer receive the check?
yes the received it 4 months ago i called and complained the same day and called the bar association and they set a date a month from now….all funds will be released to me with all interest that it earned
Sorry to hear that you had to involve the bar. At least now you’ll get your money.
Just want to know if its legal for a lawyer to take 47% instead of 30% ?? Because i want my settlement in lump sum payment instead of installments.
Fee percentages are usually governed by state bar ethics rules, and some states don’t set a maximum fee (they leave it open-ended as to whether a fee is unethical on a case-by-case basis). Is the 47% just his fee or are you including costs as well?
A fairly common fee arrangement is a 33 1/3% (not 30%) fee prior to suit being filed, and 40% thereafter. If costs are included, the total amount could easily be 47% to your lawyer under a 40% fee, depending on the amount of the settlement. I’m not sure why you mentioned a lump sum vs. installments.
i won a $80,000 settlement because my dad died while taking a medication. the judge signed the distribution papers and i am being told that all im waiting for, is to get the money. ive heard that they can hold on to the money. is that true? also, how long will it be until i get the money. i need it soon, is there any way to speed up the process? i live in california.
I have not been able to find any California statute that places a hard deadline for an insurer to pay a settlement. It seems that your lawyer would have to wing it, and file a motion to enforce the settlement agreement if the insurer drags its heels too long.
I was in a Head On collision on my way to school On March 19,2010. I was the passenger of the Vehicle that was hit. We finally settled July 23,2012. We are still waiting on the check. I dont know if I would entirely have trusted my attorney in court that is why we agreed to settle. He is an associate of a reputable attorney. He didnt even know all of our injuries. We can never get reach him and it is pointless to leave a message he never seems to get them. We have settled with what we are going to pay our health insurance company (Erisa Plan) and now we are just waiting on the check. Oh and I am in missouri if that helps
I’m sorry, but I can’t tell what your question is.
Sorry I was wondering if you knew any of the personal injury laws in missouri. I was tired when I wrote that.
Sorry again, but I still don’t know what your specific question is. Basic tort laws and procedures are very similar from state to state, so I’m not even sure if your question involves something that might be “Missouri-specific” until you ask it. If it is, I still might be able to point you in the right direction.
after a certain time do they require interest. how long would it take for us to get the checks
I spent a good deal of time looking over the Missouri statutes for any state laws regarding the time for payment of settlements. Unfortunately, I couldn’t find any. Not all states have them, which is why I advise making the terms for payment and the penalty for failure to do so part of the settlement agreement.
I obtained a New Jersey attorney to handle a FDCPA case against a debt collector. Court records show the case settled and the order was signed on July 9, 2012. The attorney is very non-communicative since everything started. And perhaps I did not ask enough questions in the beginning. Can you offer any input as to what I might expect from here? I have not signed nor received any release.
Did you give your lawyer authority to settle above a certain amount? If not, and he just settled without consulting you, that’s a pretty bad ethics violation. I’d set up a meeting with him ASAP to go over the settlement terms. If the issue of how much the the defendant would pay for his attorney’s fees was not resolved as part of the settlement (sometimes this is handled separately), that could delay the writing of settlement checks for a little while.
Hey I am in NC, and settled a sex abuse claim aug 28, when will i get a check from my attorneys. The insurance paid policy limits, and the organization threw money on top of it. Am i going to wait long?
I would expect your lawyer to get the checks within 30 days of settlement (and the signing of releases). After that, it will take up to 10 business days to clear your lawyer’s trust account. After that, the only thing that could hold up the process would be any medical liens you may have, but you could request a partial distribution to hold you over until the liens are resolved.
Hello we have settled the case in july and everything has cleared ,the lawyer assistant and receotionist said every thing is cleared but their waiting on lawyer to disperse the check and the laywer is going through a illness and thats the rreason why they have not funded the money. is their anything i can do or not
If he’s the only one authorized to sign checks from his trust account (a wise precaution), then there’s not much you can do if he’s too sick to do that.
Hello,
I am in Florida and sign the release for a slip and fall on August 10, 2012 after 2 years for them to settle. The lawyer said he received the check already and it has cleared. He is now waiting on the final numbers from the Dr’s, ambulance and hospital to make out my check. Is there a time limit he has to do this in Florida? It’s going to be 30 days on the 10th of Sept. Thanks
While there is a time limit for the defendant to issue its check to your lawyer, there is no time limit for your lawyer to pay you, if there are liens to be resolved. If your share of the settlement clearly exceeds the total lien amounts, I’d suggest asking for a partial distribution of the excess while you wait for your lawyer to negotiate down the liens. If he has not yet received any lien information from which he can estimate the total liens, you’ll just have to wait for those totals to come in. They are usually provided within 30 days of a written request.
I just wanted to give you a BIG Thank You for the time and effort you put in answering all our questions.
It’s not every day that you come across someone that gives up their free time to go the extra mile and help some of us get a better understanding.
Again Thanks
My husband settled his NJ Workers Comp. case last month and the adjuster said he would send the check out with in 4 weeks. It’s a little over a month later and we my husband hasn’t received any check! And when we all the attorney, he just tells us he has no idea what’s going on and he says he keeps faxing and leaving messages at the adjusters office. Is there anything else we can do..??
I’m not a workers’ comp lawyer (or a NJ lawyer), so I really don’t know. It sounds like your lawyer is doing what he should (being a pest, for now). If it takes much longer, there are likely ways to bring this before a comp judge to compel them to pay in accordance with the settlement. However, given the time it would take to do this, it’s probably wiser to just wait a few more days and see if the pestering works, first.
Thank you very much for having this information available for all to see and read:) I do however have one question:
Lets say one has been waiting more than a year to receive a settlement check from a minor car accident. (california)
A settlement letter was received March last year (2011)Indicated was the amount owed, however we never signed anything. Nor was there ever a distribution of release forms given after settlement amount was communicated. Is this normal procedure?
We have been calling the attorney non stop since then however they never seem to be available or out to lunch at 4pm!?! We plan on paying the attorney a visit since we sense something “fishy”
Would it be a possiblity that the attorney representing me can manage to keep the check and never distribute it? (e.g. some sort of Malpractice?) what then?
Thank you very much!
I’d definitely make an appointment to see this lawyer (or just stop by and wait if they won’t give you an appointment over the phone). It’s extremely rare for lawyers to steal their clients’ settlement money, because it’s a sure way to get disbarred, but it does happen.
I was in a hit and run accident in NY and ended up suing my brother’s auto insurance because the driver was never caught (No-Fault). This was in April of this year. After receiving my med records and getting proof of serious injury, the insurer agreed to a settlement with my lawyer (who informed me before accepting the settlement) for the maximum payable of $25,000 (policy limits). I go in to my lawyer’s office tomorrow to sign the release. Will the release outline when I should get paid? And if I’m not happy with their eta, can I refuse the settlement until they agree to pay quickly? Just curious…I’m kinda antsy and can’t wait to finally pay my bills…thanx in advance for your input. Ciao!
In New York, you don’t have to worry as much about the release stating when you will be paid, as there is a statute governing this. I’ve discussed this in other comments, identifying the times to be paid for settlements with both public and private entities. Just use your browser’s search function to find them. Type “CTRL+F” and search for “CPLR” (without the quotes) and it will take you to those comments.
Hi,
Last year, my mother had a slip and fall accident on county property controlled by the Los Angeles Dept of Water and Power. Last year, represented by an attorney, she filed a lawsuit against LADWP for her damages. Her attorney sought to be relieved and counsel and she and the attorney parted ways earlier this year. I, a licensed attorney in CA but not a tort attorney, have been able to negotiate a modest settlement on my mother’s behalf. The settlement negotiations and final settlement are in writing. We have signed the “Request for Dismissal” and it has been filed with the Court. The attorney for LADWP has informed me that the settlement check will be forthcoming and that it will be made out to my mother and three lien holders (her doctor’s office, a chiropractor and her former attorney). I’ve been in communication with two of the three lien holders and have gotten final figures sought from them, but I cannot locate the chiropractor. Two questions: (1) How do we cash the check since it will be made out to multiple parties? (2) Suppose we can never locate the chiropractor. How long does he have until his lien is void if we cannot contact him? Also, could his lack of accessibility prevent us from cashing the settlement check altogether?
Thank you,
Kimberley
There is no reason why they need to include the chiropractor on the check. In California, private doctors and chiropractors (as opposed to hospitals) have no direct cause of action against an insurer or tortfeasor if it pays out a settlement from which they are not reimbursed. A release with an indemnity and hold harmless agreement is more than enough to protect the defendant. You should try to get them to take the chiro off the check, as they have no reason to require it.
If you haven’t already, you could check the California Board of Chiropractic Examiners’ website to search for your missing chiro. If he’s still practicing, he should have updated information on his whereabouts listed with the board. You could try this before approaching the defense lawyer about removing the chiro’s name from the check.
As to how long the chiro has to assert his lien, he has until statute of limitations runs, which for most medical providers will be the SOL for an unwritten contract.
If you do manage to get the defense lawyer to remove the chiro from the check, you’ll be faced with a bit of a quandary yourself. Because you’re acting as your mom’s lawyer, you’ll likely have an ethical obligation to honor any letters of protection she may have given the chiropractor. This would require holding the chiro’s money in trust until you find him or the SOL runs, which could be a long time (years).
Thank you!
Do you know what the process/protocol is for cashing the check since it will be made out to multiple parties?
For the record, I never see this happen in Florida (putting lienholders on the check). If you absolutely must do it, I would imagine you would have to send it to each of the lienholders (using certified mail or one of the delivery services with package tracking) to get their endorsements before having the client endorse it. If the client has a lawyer, the check gets deposited in the lawyer’s trust account and disbursed. If she doesn’t, she’d deposit it in her own account and then reimburse the lienholders.
I think this practice is kind of stupid, as it just slows down the payment to everyone and really doesn’t offer any additional protections to the lienholders. None of them can deposit the check (which is why you save the client’s endorsement for last), so there is still no guarantee that they will be paid if the lawyer or client doesn’t honor the liens. While having them sign the check puts them on notice of the settlement, a separate letter from the insurer informing them of the settlement would do the same thing (and wouldn’t delay the depositing of the check).
If the insurer really wanted to ensure that lienholders were paid, it would need to cut separate checks to each lienholder. While requiring the lienholders to endorse a lump sum settlement check may give them more leverage to negotiate their final lien amounts, I fail to see why the defendant would care how much each lienholder gets, as long as their liens are satisfied.
Hello,
My mother died on June 3, 2011, and she did not have sufficient life insurance. I had originally asked our church for help; however, they came to the house and said they would only pay nine hundred dollars, so my cousin stood up and said after viewing me crying in the middle of the living room floor, “I have some money saved up for something else, I will pay it”. So when we went to the funeral home she wrote out a check for three thousand dollars, and said “I want this back”. In February I sent her a money order for $100.00, but I’d been financially unable to send anymore money since. I am on Social Security disability, and experiencing hard times. Now my cousin had me served today with lawsuit papers to appear in court on this Thurs.
Thank you,
Carolann
Hi again,
I’m sorry I did not form my question to you for advice. I’m on a fixed income, and I want to repay my cousin. What should I do or say when I appear in civil court on Thursday?
Thanks,
Carolann
Whether or not your cousin has an enforceable contract will really depend on the specifics of the conversations you two had prior to her making the payment. As I’m not a contract lawyer, I can’t speculate on what magic language is required in your state to make an enforceable contract.
As to what to expect, I assume this is in small claims court. Procedures vary from state to state (and even court to court within states), but generally the first time you appear you will be asked if you dispute the claim (this may not even be by the judge — it may be a clerk). If you dispute it, you may be offered free mediation services, which I would take advantage of, as it may help you work out a reasonable repayment schedule (if that is your intent). Mediation might even be held that same day. If they don’t offer mediation, or if either party doesn’t want to mediate, you’ll be given a date for the trial, which is often a few months later — small claims court moves faster than courts that deal with larger sums.
I’m not going to go into what you need to do to prepare your small claims case, as you may wind up settling. Mostly, this first hearing is to see: (1) whether the defendant shows up — if she doesn’t, a default judgment will be entered against her, (2) whether the defendant disputes the claim, and (3) if she does, whether the case can be settled or needs to be set for trial.
I signed the settlement release papers on July 2012 against the NYC transit authority. My lawyer told me I had to wait from 3 to 6 months for me to receive the settlement money, How do I find out if he is being honest with me about the date the money comes? And is there a way for me to know when he does receive the check without having to ask him personally?
New York has a statute governing how long private and public entities have to pay after settlement. Municipalities have 90 days. Do a search in these comments for “CPLR” (without the quotes). I have already cited the statute in other comments, if you want to look it up yourself.
There really is no way to know when your lawyer receives the check, other than calling him. I wouldn’t bother until the 90 days starts to run out.
I settled a case in chicago Il and the settlement states payment will be made no later than 14 business days after my signature. I signed the paper on 7/26/2012 and still have not received my agreed upon check. It is now 33 business days past our agreement. My lawyer says he still does not have the check and is now ignoring messages from me. How do I force them to live-up to the agreement?
If the agreement provides for interest in the event of untimely payment, you make sure that’s included when you get the check. If a lawsuit had been filed, your lawyer could file a motion to enforce the settlement agreement. If a lawsuit had not been filed, he would have to file a separate lawsuit to do so, which would basically be a breach of contract action. Your lawyer is probably ducking you to avoid having to do more work in the hopes that the check will arrive. I suggest reading this article to try to get a hold of him.
Thank you for the response. This settelment is in regard to a suit. Do you know if Illinois provides for interest payments even if it is not written into the agreement?
It doesn’t appear that Illinois has a statute specifically aimed at interest on settlements. It has a statute regarding interest on written instruments, 815 ILCS 205/2, which in theory could apply to a written settlement agreement. One Illinois court has said that this statute did not apply to a settlement agreement which did not set a specific date for payment, as discussed on this site, but because your agreement does set a specific date, you could argue that it does apply. The case referenced is somewhat old (2003), so there may have been other cases that have addressed this issue since. I’ll let your own lawyer research this, seeing as he’s getting paid for it.
Thank you again. I appreciate it.
Good Evening……
I live in the state of Delaware and recently settled a 4 year long mass tort lawsuit against a major Pharmaceutical company. I signed a release as well as how i want my settlement to be distributed along with an insurance settlement for my hospital bills. My question is how long after should i expect payment and do you think a structured settlement is better than a lump sum payment. Thanks in advance for your input.
With a structured settlement, it’s a little more case-specific as to how long it will be before you get your money, as the annuity will have to be set up and funded (and in some cases, a trust on top of that). Hopefully, this would take less than 60 days.
As to whether a structured settlement is better than a lump sum, that really depends on the reasons for having a structured settlement at all. As personal injury settlements are not taxed (at least federally — I don’t know of any states that tax personal injury settlements, either), the only tax benefit you might get would be that the interest which the annuity generates is tax-free — if you got a lump sum and invested it, any interest or capital gains on the original amount would be taxable. So, in this respect it depends on how much you could have gotten as a lump sum and how much you could have grown that money, after taxes, as compared to the payout of the structure over the same time frame.
Some people get structures so that they don’t lose income-dependent benefits, such as SSI or Medicaid. Others just don’t trust themselves with a lump sum and use a structure so they don’t blow the money they may need every year to cover their accident-related expenses. In other words, whether it is better for you is dependent on your reasons for considering a structure at all — this is really something you should have gone over with your own lawyer and a tax professional before agreeing to a structured settlement.
My friend’s divorce case has dragged on for 4 years. During this time, as a long time family friend, I was asked to help contribute towards her legal bills, emergency home repairs, and auto repair costs.
I made a gratuitous offer, without consideration, to her law firm to help as much as I could. No contract was signed, and nothing more than a promise to help was offered by me.
Unfortunately, I could not come up with moneys fast enough for them, and they withdrew from the case. This law firm has now placed a lien on my property and holding me legally responsible for her entire bill of over $100,000. I am fighting it, pro se. I have no more monies for an attorney.
On the flip side, I need the monies I loaned to my friend returned. The final divorce hearing is set for January. The funds I loaned, are documented into four areas: Legal representation, home repairs, auto repairs, and children’s activities/camps. All monies loaned were paid with the understanding that they would be returned at settlement.
How do I lien the marital estate to insure that just like an attorney who has placed a lien on marrital assets, my lien is of equal importance? The monies I loaned were for her legal representation, so her attorney would not withdraw so close to the settlement, for a new boiler to warm her house where she and her children live during visits, for car repairs in order that she can safely arrange visitation for her boys, and support for continuance of the two boys love for music through lessons and summer camps. The husband refused to pay a penny towards any of the emergency needs of his family.
Thus far, my contributions are close to $175,000.
What is the best way to insure these funds are returned, and paid from the marital assets of a quite large marital estate?
Your thoughts please.
Thanks,
Jay
While written attorney fee contracts are usually required in contingency fee cases, most jurisdictions do not require them for hourly contracts (although it is certainly a good idea). So, I wouldn’t assume that you not signing anything with her firm will win the day. As to whether this was a gratuitous promise or a valid oral contract supported by adequate consideration (the continued representation of your friend) will depend largely on the exact language exchanged when the promise to pay was made.
As to you filing a lien on her case, I’d be surprised if you can do it. Normal creditors don’t get the right to place a lien on lawsuit proceeds unless this was specifically agreed to at the time the money was lent (as in the case of lawsuit loans or letters of protection) or if they are granted by statute (like hospital liens) or common law (like attorney’s charging liens, inmost cases). Lenders who aren’t granted a lien by statute or common law must have the client specifically agree to the lien, and should probably have the lawyer sign off on it as well. I’m assuming you didn’t do that.
Therefore, you’d be stuck like any other creditor (such as credit card companies) in using traditional collection practices (or a lawsuit) to collect if she fails to pay. Of course, this route doesn’t prevent her from spending the settlement money while you pursue them.
I received a Proof of representation form and a Request for Health Info from my attorney in regards to my personal injury case four weeks ago which I signed and returned, I called to find out what is the next step, a paralegal with the attorney’s office said they are waiting on a release,the attorney turned around and said it will probably Jan 2013 when I will get paid, in your opinion do you think that is accurate? Thank you.
I’m not clear about what the paralegal meant by “release”. Did she mean that your case settled and she’s waiting for a release from the insurer or did she mean that she’s waiting for the release of your medical records so that they can make a demand? If your lawyer hasn’t made an initial demand yet (and I’m not saying he should have — these things take time to put together) I would say that getting paid by Jan 2013 is pretty optimistic.
Thank you very much for your input. I am not sure which “release” the paralegal meant,the case was settled in July and at that time the attorney stated that they received a lot of different figures/numbers from the insurance company which some of it did not make any sense to him but he will work on that, so he sent me the two forms previously mentioned so that they can negotiate the liens, at this point I am am assuming it is the release from the insurer since he already knew about the medical bills,once again I want to say
Thank you.
If your lawsuit already settled, then receiving payment by Jan 2013 should not be a problem. Hopefully, it will be sooner than that. Some health insurers do give conflicting information (or vague and sometimes untruthful information) about their lien amounts, so these may take longer than usual to resolve. Still, if your case settled in July, I would hope that any release issues with the defendant were resolved already and that your lawyer is just dealing with medical liens now.
The state is Louisiana. My father in law was involved in an auto accident 6 years ago that resulted in his death 2 months later. We settled with the oilfield company whos truck caused the accident almost 3 1/2 years ago. At that time the lawyers informed us that they had to put $30,000 in escrow and wait to see if Medicare filed a claim. We have since learned that the liability portion with Medicare has been settled, but the lawyers are waiting on a no fault letter from Medicare. How long should this process usually take? Thanks for your insight!
Unfortunately, with Medicare, it just takes as long as it takes. I’ve had some cases where I was able to resolve Medicare liens within 30 days and I had one case where it took them over a year to give me final lien amount. There’s really no way for a lawyer to force Medicare to move along, so just hope your case is being handled by one of their more efficient employees. If the lien itself has been paid, it shouldn’t take too long for your lawyer to get the letter.
Here I go again. I want to know if it is wise to sign a Release before you know the breakdown of the medical liens, attorneys fees ect, I ask the attorney and he stated that the reason I am signing the Release is (1) for the Defendant to release the settlement check and (2) that after I signed for the and agree to x amt of dollars I cannot come back later and sue, my concern is if I sign the document without knowing what I am suppose to receive and what the expenses are,does that mean they can give me what they want because I already sign the Release?. I had already signed a previous Release but due to the death of my husband he is not here to sign, the death certificate was sent to them before I received the first Release, I had my section signed and notarized and sent to him 10/19/2012 now here it is 11/06/2012 the attorney is telling me that the Defendant/Insurer said they cannot use the first one because my husband name is on it and he is not here to sign it,so they had to scrap that one and do another one without his name.He also told me that once I sign and send the second one back ,they will be able to get the money from the Defendant and they will send me a detail breakdown of all expenses,and they will hold back monies for the medical liens and send me the first distribution at the beginning of 2013 this case was settled in July 2012. he mentioned once the liens are cleared they will send me the balance,he said he will send me a tally of all expenses once he get the check from the Insurer and before he send me any payment,by now I thought he should know what he will hold back for the medical liens,his fees and other expenses, and what he will send me because I know what my medical bills are, I have the info from the hospital and they are far less than the settlement amount. Am I wrong for saying he should give me a breakdown of all expenses and what my partial distribution is before I sign and return the Release?
It sounds like your lawyer is handling this as many, if not most, lawyers do. It sounds like you (or your late husband) already agreed to the settlement amount, as usually releases aren’t sent out without a firm agreement in place. The time to have pressed the lawyer about liens was before agreeing to the settlement, not after agreeing but before signing the release. In all likelihood, it’s too late to get out of it now anyway.
In any event, the lawyer probably can’t give you final lien totals right now. At best he can give you a ballpark, as he’ll probably try to negotiate them down (which usually doesn’t happen until after the settlement). He can also estimate the costs, but those will also still accrue until he completely wraps up the case (postage and copies aren’t free).
While you could ask for these estimates before you sign the release, it will delay the insurer sending out the settlement check, and you may not be able to do anything about it if you’re unhappy with the settlement amount. Even after you sign the release, you can still dispute the lawyer’s distribution if you disagree with his costs (so costs really shouldn’t be an issue now). From your description of what your lawyer plans to do with respect to the partial distribution, it sounds like he knows what he’s doing and it doesn’t sound like there is cause for concern. The only problem would be if you or your late husband agreed to too small a gross settlement amount, and that bell probably can’t be unrung.
Thank you once again for your input,, but as far as the liens goes he already knew about them before a settlement was made, he also told me because of the scope of my injury and after reviewing all the info he had he give me a figure as to the max he think he can get,but he will try to see if he can go higher than what he told me,after settlement he told me they were able to negotiate a little more.
It sounds like you agreed to let him settle for the amount he had proposed (and then he got you a little more). Again, the time to have asked questions about the amount of the liens was before giving that approval to settle. I doubt you have much of a shot at getting out of the settlement now, so delaying the signing of the release is probably not helping you — it’s just delaying you getting paid.
Im in California and suing my car dealership for breaking breach of contract and class lawsuit. I recently settle about 2 month ago. I settle for the title of my car and some money, I drop the class lawsuit in my settlement and I was not the prevailing party. When I first talk to my laywer about this case I ask him what his fees will be he did mention over the phone that I didnt have to worry about it because his fees came out from a different account from the dealership if we won and if we didnt there was no fee. Now he file for motion for his fees and cost but the court dismiss it. He told me he would have to appeal that to be able to get his fees. He did mention to me before that I dont get pay until he gets pay. Now when I offered him half of my cash money from the settlement ($3,000) he told me that his fees were 63,000 not $3,000. My car is blue book value of only $4500 + $6,000 cash Im only receiving 10,500. Now my question is how long do I have to wait to get the settlement and is it true I have to wait for him to get pay? He did tell me he would take what ever the judge said he should get pay for but like I said it got deny. I dont know whats going to happen with my settlement check and car title. I email him and he said he was going to contact to see if the dealership wanted to release the check.
First, a quick explanation as to what happened in your case. It sounds like your lawyer sued the dealer under a statute that allows him to recover his attorney’s fees if he won. These are calculated on an hourly basis, and sometimes allow for a multiplier to be applied to the hourly rate (in Florida, the maximum multiplier is 2.5). So, after your lawyer won your case, he adds up the total number of hours he worked, multiplies it by a reasonable hourly rate (and sometimes a multiplier on top of that) and asks the court to award him those fees as well. The purpose of allowing attorney’s fees to be awarded in these types of cases is to encourage attorneys to take cases where the amount in dispute would not be enough to allow them to take the case on a pure contingency fee basis (this is why your lawyer doesn’t want a percentage of your recovery — it just isn’t enough to cover the time he put into the case).
In your case, for some reason, the judge denied the request for attorney’s fees. If your lawyer is only appealing this part of the judgment, and the defendant does not plan to cross-appeal the judgment as to your damages, the appeal should not delay the payment of your damages. You still have a valid judgment (which accrues post-judgment interest) and you can execute on that judgment if the defendant doesn’t appeal it. I wouldn’t be surprised if the defendant just pays you your money and then defends the appeal as to the attorney’s fees.
If the defense appeals your part of the judgment and loses, it could find itself liable for even more attorney’s fees (assuming your lawyer wins his appeal), so there is an incentive for them to just pay you. The time to appeal a judgment is typically 30 days from the date of the judgment, so you should know whether the defendant cross-appeals by then. If it doesn’t, you shouldn’t have to wait until the appeal is over before getting paid.
What are my payment options? Can my lawyer make a direct deposit? or make a wire transfer?… I live far away and I don’t want to wait for my check to arrive… Is this possible? Thank You!
I doubt it. I don’t know of any lawyers that have ever done this. It’s likely that your lawyer will need you to endorse the settlement check before he can deposit it into his trust account (unless he can convince the insurer to just make the check payable to his trust account, which I’ve done a time or two with out-of-state clients). So, you’re probably facing a delay in the initial deposit of the settlement check, plus the time it takes to send you your portion after it clears. You’re best bet would be to use overnight mail for your portion at least, as it will probably cost you the same as a wire transfer (considering you’d need to pay for both yours and your lawyer’s bank fees for that.
hi i have a question i live in newyorkcity and i called lawcash for litigation funding how long will it take to get a call or answer back on approval and what are the steps in this process till i get the money if approved thanks.
Usually, lawsuit loan companies want to give you answer pretty quickly, so it often comes down to how long it takes your lawyer (assuming you have one) to fill out their paperwork and send them the information they want about your case. Usually, you’ll get an answer within a few days (sometimes not even that long) of them getting the information they need to evaluate your case.
Know that most lawyers hate filling out lawsuit loan paperwork, because they don’t get paid for the time it takes to do it, and most have a low opinion of lawsuit loans to begin with. You may have to call your lawyer to nag him or her about filling out the paperwork.
I signed an auto accident settlement in November of 2011 and received partial distribution shortly after. However, it has been over a year since I settled and my attorney still has half of the settlement money to pay the providers, himself and the remainder to me. He has more than enough to pay off everyone and I am still waiting for the rest of my money. His reasons for taking over a year is to negotiate with the providers, which still has not been done. Is this acceptable? What action can I take to get the remainder of my settlement and pay off the providers? I’ve heard he is violation and to report him to the bar. Any suggestions?
It definitely shouldn’t take a year to resolve your liens. The only time I’ve heard of such a thing happening was with a Medicare lien, and even in cases involving Medicare, that’s an extreme rarity. If you can’t get a straight answer from your lawyer, it may be time to contact the bar.
Thank you! I really appreciate your response. I have sent one last email asking for resolution. My next step is to file a complaint. Thanks again!
Hello My mother is gonna have a Mediation on the 17th of this Month, and the thing is we live in Manhattan, NEW YORK, now i wanna know when will she get her money? she won the case, the thing is i wanna know when will she get that? any ideas?
If she’s still got a mediation scheduled, then she hasn’t won her case yet, at least not completely. The whole purpose of mediation is to settle a case, so why do it if you’ve already won? The only circumstance I can envision in which this would happen (and did happen to me once) is if your mother won at trial, the other side appealed, and now they are mediating to see if she’ll take a smaller amount than was awarded at trial to avoid the appeal. If that’s the case, or if your mother hasn’t won at all yet (and there was a miscommunication that led you to believe she had), then there is no deadline for her to be paid right now. When a civil defendant appeals from losing at trial, most of the time it will post a bond and get a stay from the trial court that prevents the plaintiff from executing on her judgment while the appeal is pending. So, until the appeal is over, she wouldn’t get paid at all (though interest accrues on the judgment while the appeal is pending, assuming she wins).
If her case settles at mediation, New York does have time limits in which the defendant has to pay — there are different time limits based on whether the defendant is a private or public (like the city or state) entity. I’ve discussed both of these deadlines in other comments to this article, so you can use your browser’s search function (hit CTRL+F) and search for CPLR to find that information.
I live in KY and just settled my car accident settlement last Friday (it’s now Tuesday)… how long do you think it’ll be until I get my check? Also once you get your check, can you spend some of the money the same day, or do you have to wait for it to clear first?
I couldn’t find a Kentucky statute setting a deadline for payment of liability settlements (there was a statute (pdf warning) that required payment by your own insurer within 30 days, but it doesn’t apply to third party claims — such as yours). Not being a Kentucky lawyer, I may have missed it (I looked for a while), but absent such a statutory requirement, typically settlement checks are received within 30 days of you providing a signed release to the insurer.
If you have a lawyer, your check will need to be deposited into his trust account and will take upwards of 5 business days to clear. Then your lawyer can write you a check, which will then need to clear your bank account (unless you cash it at the bank that issued the check).
If you don’t have a lawyer, the only way to get cash for the insurer’s check the same day (without having to pay a check cashing place) would be to present it at a branch of the bank from which the check was issued (assuming there is a local branch — the insurer may bank at a place that doesn’t have local branches in your area). This same check cashing policy would apply if you received a check from your lawyer, though the odds are more favorable that he banks somewhere with a local branch.
I have an overtime class action lawsuit out of Texas that has reached a tentative settlement and is waiting for a judge to approve it. how long do you think it will take to receive a check from this point. also, my lawyer wont tell me the settlement amount, is that legal? and how would they calculate the overtime rate of pay as i did not work under an hourly rate in Massachusetts?
Given that the settlement has not yet been approved by the court, there’s no way to know how long it will be before any class members get paid. Typically, the court will issue a “preliminary approval of the settlement” order which sets forth the proposed terms of the settlement and gives the class members notice of how to file any objections to the proposed settlement they may have. For this reason, your lawyer may not be violating ethics laws by not disclosing the settlement terms to you right now — there’s a procedure already in place for formally notifying class members of the settlement terms after they have survived initial court scrutiny.
As to how your rate of pay will be determined, I can’t say. I assume that some form of proration based on your non-hourly pay will need to be used. Of course, it’s unlikely that any class members will be fully compensated (this is a settlement, after all) and that each members portion of the settlement will be a pro rata share of the overall recovery, based on their estimated lost wages. They may even subdivide the members into groups based on ranges of compensation lost, so that those who lost between A and B dollars get X, and those who lost between B and C dollars get Y. There are many ways class settlements can be divided when the members have claims of different values. This should be explained when you receive formal notice of the proposed settlement.
Hi I live in florida i was involve a car accident 3/20/12 my lawyer sent the insurance(chubb) demand letter he give the insurance 30 days, how long you think it will take to settle my case thanks
I have no idea. Some cases settle right after the initial demand is made. Some go all the way to trial and even to appeals. Most that aren’t settled immediately will require some litigation, though how much and for how long is another thing that varies on a case-by-case basis.
I was in a car accident 13 years ago in Michigan and I had a lawsuit that was settled November 8 but the release is still not complete with the wording I want to know how long this process takes, It is now the end of January and I still have not signed the release this is crazy, the first release had nothing in it that was agreed upon so I did not sign that one so my attorney keeps telling me that its up to the defense attorney to get the wording right, well without this released sign they will not process my pip benefits. My question is how long does it take to get a release wording correct and how long do they have to get it right?
While there is no set time limit on how long you have to come to an agreement on a release (statutes that impose penalty interest on late payments of settlements usually run from the date the insurer receives the signed release), yours is taking far longer than usual. Unless there are some potentially complicated issues, such as preserving claims against other defendants, or even additional claims against the same defendant you are releasing, releases usually only require minor revisions, if any.
Normally, if I had problems with a defendant’s release that couldn’t be solved by sending proposed written revisions back and forth once or twice, I’d get the attorney on the phone and hash out the language in real time until we were both satisfied. While the defendant is the one who drafts the initially release language, after that I’d say its the duty of both parties to “get the wording right”. If your lawyer keeps unilaterally rejecting proposed releases without suggesting acceptable language of his own, he’s just making the process take longer than it should. I’d call him and suggest that he call the other lawyer and work out the final language over the phone. You’ve waited long enough.
I’ve got several questions in relation to the national mortgage settlement. It involved several banks who illegally foreclosed on me twice. I received my papers in Oct. 2012 and signed the release of information. It was my personal residence and I was told that I would be part of a Fed/Mortgage Settlement where there was a cease and desist order but they foreclosed on my anyway. The deadline was to get the information in before Jan. 18-2013, I did. When I contacted the attorney’s office who litigated the case they stated they were looking at who has responded to case. And that we would split the 1.5 billion dollars amongst the respondents, is this possible?
I’m afraid that I know nothing more about the national mortgage settlement than your average person who reads about it in the news. I know that not all of the settlement proceeds will go to the end consumers — some will go to the states who were party to the settlement for consumer protection services.
This website has information about the settlement. Under the section marked Payments to borrowers who lost their homes to foreclosure, there is a toll-free number to call if you have questions. It does indicate that $1.5 billion would be split among those who qualify. However, this amount covers affected home owners in every state (except Oklahoma, apparently), so I can’t say how many claims there are or how much each person will ultimately end up receiving.
What a great website! I am a Florida resident Husband and I were both plantiffs in a personal injury case which was filed 4 1/2 yrs ago in Illinois. I settled 6 months ago through mediation. My husband passed away a month before the settlement intestate and he has two children from previous marriage. There were overcharges from Medicare demand that were challenged but because they were not paid according to the initial request in a timely manner I have been fined 1K. OK – my questions are do I have to share with his children if I was also a plantiff? Do I owe that medicare fine? How much longer can this drag on before I get my money? I am losing my house which I can’t save without those funds. Attorney will not partially release any of the funds to me.
A lot of this is going to depend on how the death of your husband was handled in the lawsuit. Usually, when a party dies during litigation from causes unrelated to the injuries suffered in the underlying accident, the case proceeds as a “survivor/survival suit”, with someone (usually the spouse) being appointed to represent the decedent’s estate in the lawsuit, and substituted as the named party for the decedent. Your settlement should have specified how much was being paid to settle each individual claim, so you’d know how much was paid to you versus his estate. Then, how much would have to paid to his survivors would be in accordance with Florida’s (assuming he, too was a Florida resident) probate laws regarding intestate succession (which I’m no expert in, so I’m not going to give you my opinion of how that should play out). The Medicare fine issue would depend on whether it was levied against you or the decedent. If it was against the decedent, it may have to be paid out of the lawsuit proceeds assigned to the estate.
If there was no division in the settlement as to how much was paid to you versus the decedent, then you’ve got a pretty big mess on your hands, and you’re going to need to have a long talk with your lawyer about sorting this out.
fl_litig8r, your responses are fantastic. Thank you for doing this service!!!
Quick question that I know you can easily answer: In FL, if I have medical bills subject to letters of protection that were never signed or seen by me, only by the lawyer, do these providers now have a lien on my recovery?
I have a small settlement that will be entirely used up by medical expenses but I am also of the opinion that, without a letter of protection, the medical bills may be past the statue of limitations and possibly uncollectible. The lawyer’s position is that he’s obligated to pay because he signed letters saying I would give a lien on any recovery to these providers.
The lawyer is forcing my hand since he has the money in trust and won’t disburse it until I sign an agreement saying he will negotiate and settle the medical bills.
Does my lawyer _have_ to pay a provider under an LOP I never signed before he pays me? Am I right to demand he pay me instead of the doctors and let me settle the doctor bills myself?
I realize I still have an obligation to pay for services rendered, but I am concerned whether a lien arises when lawyer signed the letter of protection but I never did.
Thank you again for taking the time to write here and provide such frank answers !!
“Something I can easily answer”, he says. . . hah! You would think that after all the years that letters of protection have been used in Florida that a lawyer’s ethical and legal obligations would be clear in all situations. Unfortunately, that is not the case. If you feel like risking injury to your brain, read this ethics opinion from the Florida Bar, and see if you can do the mental gymnastics required to figure out what your lawyer should do. I know your lawyer will read this opinion when you tell him that you want to dispute the LOP. I doubt that he’ll find the answer to be clear or simple.
The problems in a nutshell are:
So really what you have is a huge mess. I know you were hoping I’d say that because you didn’t sign the LOP, you’re off the hook, but it’s just not that simple. Even if you didn’t verbally authorize your lawyer to sign the LOPs, you may still be liable under an “apparent agency” theory. You and your lawyer may even disagree as to whether you authorized him to sign the LOPs.
I’d see if you can use the potentially expired SOL on the underlying bills, as well as the questionable enforceability of the LOPs, to have your lawyer negotiate down the LOPs to an amount you can live with (maybe he can kick in a few bucks from his fee). Otherwise, it may cost you more to fight this matter in court, given the likelihood that you’d need to pay another lawyer, and you still might wind up owing the full amount of the medical bills.
Fantastic response, I don’t know when you sleep but I didn’t expect such a thorough answer to be waiting before my morning coffee. If you ever come out of anonynomity I’m sending you a christmas card, I hope anyone else in Florida having this issue ends up reading this.
So a lawyer in this situation could possibly use agency theory to validate an LOP that his client may have never seen. Let me thicken the hypothetical plot just a little, I have plenty to go on from your response but if you have anything else to add I certainly wouldn’t stop you:
Say there were a couple letters to doctors that the law firm is very close to, my lawyer has told me he doesn’t want to upset these doctors because of their business relationship. These are the largest bills and also the only letters that I never signed.
I was able to understand and sign a letter of protection as I signed quite a few that I’m not contesting. The only ones I didn’t sign were between the attorney and doctors, particularly one which he says he’s very close to and that he “sends a lot of business his way.”
It strikes me as suspicious that lawyer never presented these letters years ago during treatment but did have me sign nearly a dozen others.
I suppose this is probably over the line of fights worth fighting, I’m a bit perturbed that lawyer’s golfing buddy will get tens of thousands of dollars for this letter when I can’t pay the light bill.
It may not be as nefarious as you think. It could be that due to their longstanding relationship, this doctor doesn’t require the lawyer to have the client sign the LOP — maybe he trusts that the lawyer has secured the client’s approval. The potential conflict of interest between a referral source (the doctor) and the client is just one of the many reasons the bar doesn’t want lawyers to act as the final decision maker when an LOP dispute arises. Obviously, you should be aware of the relationship while your lawyer attempts to works with both sides to reach an agreement, but the mere fact that the lawyer wants to honor an LOP, even when he’s friends with the doctor, doesn’t raise any particular red flags.
Your lawyer could just as easily look at your role in this dispute and say, “Hey, this guy signed every LOP I put in front of him. Now, on the one or two where I didn’t need his signature because I’m friends with the doctor he’s going to break my balls and refuse to pay?” It sounds like you would have signed the LOP for the doctor in question had it been presented at the time of treatment. Certainly the doctor wouldn’t have kept treating you without one. It’s not like the doctor is asking for free money. He did provide a service. If you dispute the amount he’s charging, that’s fair and it’s grounds for negotiating. As I suggested earlier, your lawyer may be willing to kick in some of his fee to smooth things over between you and the doctor.
is it safe and possible to do a verbal settlement with an employer through an attorney without the need to go through the state w.c. regular procedure, is the verbal agreement final or can they go back and cancel the agreement?
If this is something that should be filed as a worker’s comp claim, I wouldn’t recommend it. Aside from the practical problems of trying to prove a verbal agreement should the employer not comply, a contract which essentially circumvents worker’s comp laws may not be enforceable because it involves an illegal act.
My sister won a settlement last year from a company.Last year the company insurance decide to settle before going to court thru mediation. They sign papers.Well now my sister says she’s be inform that company file for bankruptcy and she doesn’t know if she getting any money. My question is does the company insurance has to pay no matter what? They already had the check their at mediation. This is in California for sexuallly harrastment.
If they were insured for this type of claim (and not self-insured) then your sister should be able to eventually get her full settlement, as the insurance proceeds are not funds that are available to other creditors. It will just take a little more time to get approval from the bankruptcy court.
Hi I recently settle a workplace discrimination lawsuit through mediation. At mediation I instructed my attorney on a 20 day time limit for me to receive my check, however after a few days the lawyer and the company needed the full 30 days. Please take in account I sign the executed agreement and all the necessary forms on Feb.14 my attorney sent the forms via usps next day mail Feb.15.. Here we are on March 18 I still have not receive not one red penny from the company. Can you please shed some light on what’s taking so long as my attorney says several phones calls, emails were sent out regarding this matter.
The state is NJ by the way.
It could be any number of reasons, but the most likely one is that someone at the insurance company dropped the ball in getting the check cut in time. Did your agreement provide for that payment be made (which might be satisfied by them mailing it that day) by a certain date or that you receive the check within that time? Did it provide that interest would accrue if the payment was late, and set a rate?
I’d give it a few more days before getting too worked up about it. In my experience, most late settlement payments are less than a week late and are usually resolved by your lawyer nagging them (as it appears he is). Give it a few more days. It sounds like your lawyer is handling it properly — he doesn’t want to have to ask the court to enforce the settlement agreement unless absolutely necessary, as you usually get the check before he can even prepare the motion to do so and have it heard.
No provisions were added to the agreement. And the 20days was for me to receive the check, and my attorney is nagging the hell out of them. Im trying to be patient, I have bills that need to be caught up on. My attorney says to be patient but easy to say when you have funds in petty cash draw.
I understand your frustration. A few years ago I had a multimillion dollar verdict that was up on appeal. The only issue in dispute was the amount — the other side gave the court a lower number that it agreed should be paid. I filed a motion asking the court to require them to pay that undisputed amount immediately, seeing that we were going to get at least that much, and they could pay the remainder if we won. The court just sat on the motion. The other side didn’t even file any opposition to it. After about a year on appeal the court upheld our judgment in full, but it never ruled on the motion, so we had to wait that whole year to get paid anything at all. They paid with interest (they could have saved themselves tens of thousands by paying earlier, but I guess they figured they were making more in interest than the rate they owed us. So, even if your lawyer files a motion to force payment now, you’re probably going to get your check before the court ever gets around to ruling on it. It sucks. It would be nice if every state instituted some type of automatic penalty for failure to timely pay a settlement — something that insurers would be afraid of.
Ok I guess patients it would be. They are sending 3 checks 1 to my attorney and 2 for me. So my checks won’t need to enter a trust being as my lawyer have a separate check.
So when should I start to worry?, should I wait another week to pay a visit to my lawyer office? because technically this is the extra week you said to to give them!!!
I’m using the 30-day deadline because they already said they weren’t going to make the 20-day. So, if your lawyer doesn’t have the checks by the end of the week, I’d expect him to really get on them about it and threaten to file a motion to enforce the settlement agreement. It’s very much a judgment call. I don’t know if they are completely avoiding his attempts to find out what the delay is or if told him that they realize there is a problem and are working to correct it. The former would require a stronger response, while the latter gives hope that the check will be on the way soon.
Thanks for the timely response I guess I have to suck it up and wait.
Ok I guess patients it would be. They are sending 3 checks 1 to my attorney and 2 for me. So my checks won’t need to enter a trust being as my lawyer have a separate check.
Is there a law like Florida’s in Md that they have to pay interest if I don’t receive my settlement within a certain period of time? I agreed with USAA’s offer Feb 28 and now it’s March 21 and I have heard nothing since.
My review of the Maryland statutes didn’t reveal any law relating to the timely payment of liability insurance settlements, at least not in the places one would expect to find it (a Maryland lawyer would be more likely to know if there’s such a statute buried in a more obscure place).
Seeing that it’s now only been 21 days since you settled (you actually posted that on 3/20, not 3/21), I wouldn’t be concerned just yet. Most insurers will pay within 30 days of the settlement date, so I’d give it until at least March 30th before thinking that they’re taking too long.
the Workers’ compensation gave me a tentative rate which is very little, although the insurance doctor/my doctor made testimonies that i am disabled, and i can not afford losing more time in legal processes,
my question is, if i were to be released to work, and later on, i find out that i am not able to handle my job the way i should, what should be the right things to do then? will i restart from scratch a new workers’ compensation case or the judge will consider the past history i have with them?
I’m really not a workers’ comp lawyer (and the laws can vary from state to state anyway), but I’m pretty sure that as long as you don’t settle your worker’s comp claim and waive your right to re-open the case (employers often require this if you settle your claim outright), you can petition to have the case re-opened if you have a failed attempt to return to work. In fact, the attempt to return to work could work in your favor and result in you being granted permanent disability (either partial or total) benefits.
Of course, you should call a workers’ comp lawyer in your own state — he’ll probably give you at least a free phone consult — to find out your specific rights before doing anything (such as settling your comp claim). Don’t rely on my speculation. As I said, workers’ comp is really not my area of expertise, and I don’t even know what state you’re in.
Hello I recently agreed to settle on a personal injury (over 30 days ago)with a large pharmaceutical company. There were 12 clients that all agreed to have an arbitrator decide how much each client receives. This has been completed and everyone is just waiting for personal insurance / Medicaid liens to be resolved.
My question is this: As I have personal insurance and my liens regarding the injury should be relatively small, will I be forced to wait while the other clients who DO have Medicaid are waiting for.
I’ve heard how long Medicare can take. Can the defendant demand that all 12 clients liens are taken care of before disbursements, or will the different clients be handled on a case by case basis?
Thanks
As long as all 12 plaintiffs were each awarded a distinct sum of money, I see no reason why your settlement funds should be held up pending the resolution of the other 11 plaintiffs’ liens. The disbursements should be handled on a case-by-case basis.
Hi, I was involved in a wreck 12 years ago with a semi-truck of a large company. I was just awarded several million in January 2013. I received my award letter in February and my lawyer has already received his portion. How long can I expect before I receive mine? I am in Texas, by the way. Thanks!
Since you mention an “award letter”, I assume this is worker’s comp. I really don’t do worker’s comp, and I have no experience with the system in Texas, so I’m afraid you’ll need to ask your local lawyer.
Hi! I was rear ended 3 weeks ago and have already settled the auto claim. I expect to be medically cleared in 2 weeks and would like to know how long before I should expect to get a settlement offer from the adjuster. We both have the same insurance and the other driver admitted faut. I’m currently handling this pro se’. Am I correct in expecting the adjuster to initially low ball me on the Non-Economic Compensation?
P.S. I think it’s awesome that you’re providing this knowledge to the masses!
Once the insurer realizes that you’re at maximum medical improvement (it will need to get your medical records and bills, so you have to give that a little time), it will probably make an offer. Don’t expect it not offer a lot in non-economic damages, especially because you’re done treating so soon after your accident. If you’re in a no-fault state, it may not offer anything at all, as those states usually require you to suffer a permanent injury before you are entitled to any non-economic damages. So, while you may think the insurer is low-balling you with its initial offer, understand that with only 5 weeks of medical treatment, your case isn’t going to be worth very much, so there may not be whole lot of negotiating room beyond its initial offer. Of course, it won’t hurt for you to ask for more. Just calibrate your expectations to the true value of your case. I’ve written a series of three articles on settling your own case which you may want to check out, in case you want to be proactive and make the first settlement demand.
I would like to start by saying thank you for taking the time out to answer all our curiosity, I was in a Auto accident in November I was rear ended by a mini van going about 60 mph while I was at a red light in return I hit another mini van that was located in front of me, and if matters couldn’t be any worse I had my two minor children in the car, I have gone back and fourth with my attorneys numerous times and we have finally settled, I think he settlement was rather low but they though it was a good deal, they then ran some fast numbers by me and explained that they will be contacting me in a week to let know the real numbers after they pay for PT (does this mean they have already taking their money?) I thought to ask them and than I though I didn’t want to be rude? Also everything seems like it went very fast and the fact that the get the offer one week and by the next week they say they will cut my check is this possible? I’m just a little confused because it seems like from what I have read here it is a lot more time consuming then I imagined.
Please excuse my typos iPad auto correct.
It is sometimes possible to get your settlement check rather quickly. I’ve had a few mediations where the adjuster actually brought the checkbook and cut me a check right on the spot. I’ve heard stories of some adjusters actually visiting lawyers’ offices to settle cases (especially when the lawyer had several against the same insurer) and cutting checks on the spot. This isn’t the norm, but as long as you approved the settlement, I wouldn’t be concerned about being paid too quickly.
As far as checks clearing the lawyer’s trust account, if the insurer uses the same bank as the lawyer (which sometimes happens) the check can clear far more quickly.
So, the short answer is “yes”, getting your check very quickly and having it clear the trust account faster than normal is entirely possible.
I filed with a law suit against Bayer with a lawyer based out of FL. I live in CO. They called me at the start of April saying that Bayer had settled 13 million for 61 cases. The judge has 60 days to split up the money, but how long will it take after they decide until i get a check? I am up to my ears in medical bills and want to get them paid off!
As I state in the article, Florida law requires that after a settlement agreement is reduced to writing (in this case, the judge splitting up the money should suffice) and you sign a release, the insurer has 20 days to pay or it will incur penalty interest from that point forward. So, from the time you sign a release, your lawyer should have a check within 20 days. After that, when you get paid depends on how long the check takes to clear his trust account (up to 10 days). If your liens are less than the total amount of your settlement, minus fees and costs, your lawyer can issue you a partial distribution for the excess amount while he works on settling your liens.
I sign the papers for a work comp. settlement on January 10. how long I have to wait for get my check that’s almost four months
Sorry, but I don’t do worker’s comp. The comp laws vary from state to state, anyway.
my wife signed a release for her settlement against bayer on march 28th of this year. this is a lawsuit in which she is in a “group” with other plaintiffs. we live in west Virginia and the lawyer is based in texas, about how long should it be before she receives her settlement check? the settlement was for $264,310 with a 40% lawyer fee and a 30% holdback for liens. in your experience how much roughly should the settlement check be for? thanks for the info!
If this was part of a class, then the traditional timing for receiving settlement checks won’t necessarily apply. I’m assuming that the $264,310 you mention is your wife’s share of the settlement, so at least the part of the process where each class member’s share needs to be calculated won’t hold things up. I would still expect that the checks would be cut within 30 days of the defendant receiving your signed release (but there may be delays if it is holding all the checks until it receives all of the releases). After your lawyer gets the check, it should clear his trust account within 10 days. The “holdback” amount for medical liens being stated as a percentage seems a bit unusual, as I would expect your lawyer to know a more specific figure to withhold than just a percentage (though he may know this number and just explained how much he’s holding in percentage terms for some reason). Without knowing a specific lien amount, I can’t say how much her share of the settlement should be. Normally, the attorney’s fees are deducted before the liens are paid, so expect the lien amounts to be deducted entirely from her share (otherwise your lawyer would be paying for 40% of her medical costs).