If you’ve recently settled a personal injury case in Miami, you’re likely eager to receive your settlement funds from your personal injury lawyer. The good news is your lawyer is just as eager as you to clear the settlement proceeds because he or she cannot take a fee until the money is in, cleared, and the client signs the closing statement. Plaintiff’s personal injury lawyers work on a contingency fee basis, and they will not be able to pay themselves until the same time they pay you. Since personal injury lawyers get a percentage of what they settle for, they are motivated to get you your settlement money as soon as possible. So if there seems to be a hold up getting you check after your personal injury case settles, it is not unusual.
It may seem that a the lawyer is dragging their feet getting you your check but there may be valid reasons for a delay from the date the parties agree to a settle and the receipt of the actual check. Once your personal injury attorney agrees with the other side on the settlement amount, there is often still more work for them to do. Sometimes it can be a lot more work and require litigation even, depending on the circumstances involved.
For example, after the amount of money is agreed to, they must work with the opposing side on a written settlement agreement that reflects the terms of the settlement. There is more to settlement than just money. There are non-monetary terms in settlement agreements too such as a releases of liability in exchange for that settlement money. The language of these agreements can sometimes be complicated or lawyers may make them complicated out of spite. All that contract language tat may seem standard must be worked out. Sometimes the lawyers or their clients refuse to cooperate or insert certain language. Confidentiality nd non disparagement agreements are common sticking points. Sometimes the Plaintiff needs a carve out to be able to pursue other potentially liable parties like a subsequent medical provider of committed medical malpractice.
Once that language is negotiated and agreed upon the, lawyer will send it to the client to sign. But it’s not over yet. The lawyer must then get that signed and notarized settlement agreement back from the client and send it to opposing counsel or the insurance company in exchange for a settlement check. It’s still not finished at that point because the personal injury lawyer has a duty to attempt to reduce any outstanding medical bills or health insurance liens that are required to be paid back by law before disbursing proceeds. A full service law firm like Perkins Personal Injury Lawyers will do their best to negotiate, reduce or even invalidate medical bills that may still be owed as well as subrogation interest like health insurance liens which could take a lot of back and forth and sometimes motion practice. This can be a long process when dealing with Medicare and other governmental insurances.
Once the settlement check is received, the personal injury. lawyer will deposit it into their trust account. The check must clear to en sure adequate funds to draw upon. After negotiating or reducing or getting certain bills and liens waived, a closing statement itemizing all the numbers, including bills, fees and costs must be prepared and sent to the client to execute. Once the closing statement is signed and returned, the personal injury lawyer will send you a check.
Other things can hold up a settlement too. Such as when court approval is needed if the settlement involves a minor. Any case that settles for a minor will be governed by an entirely different process whereby a guardian ad litem may have to be appointed to do a report for the court in order for the court to approve the settlement. This can require motions and hearings delaying you from getting your settlement check. Often times, when dealing with minors or large settlement, annuities are purchased which involve another paper intensive process.
The timeline for disbursement can vary based on several factors. At Perkins Law Offices, we understand the importance of timely communication and transparency during this process and we will keep you up to date. After all, we are a business and want to get paid too.
Understanding the Settlement Disbursement Timeline
After a settlement is reached, the following steps typically occur:
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Settlement Agreement and Release: Both parties sign a settlement agreement, which often includes a release of liability. This can involve a lot of arguing back and forth as to language to include.
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Issuance of the Settlement Check: The defendant or their insurance company issues a settlement check, usually within 20 days as required by Florida law. However, there is no real teeth to that statute on point when payment is late.
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Deposit and Clearance: Your attorney deposits the check into a trust or escrow account. Clearance can take 2-7 business days, depending on the amount and banks involved.
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Deduction of Liens and Fees: Before disbursing funds to you, your attorney must resolve any outstanding liens (e.g., medical bills) and deduct legal fees and case-related expenses.
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Final Disbursement: Once all obligations are settled, the remaining funds are disbursed to you after a closing statement is prepared and signed by the client.
In total, this process can take anywhere from a few weeks to a couple of months, depending on the complexity of your case and the amount and type of outstanding bills you have.
Factors That May Delay Your Settlement Check
Several factors can contribute to delays in receiving your settlement funds:
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Outstanding Liens: If there are medical bills or other liens, your attorney must negotiate and resolve these before disbursing funds.
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Disputes Over Deductions: Disagreements regarding attorney fees or other deductions can prolong the process.
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Bank Processing Times: Larger checks may require additional time to clear.
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Administrative Errors: Mistakes in the settlement agreement or check can cause further delays.
How long can a lawyer hold your settlement check?
The Perkins Promis
As a Perkins Law Offices client, ww will always provide :
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Timely Communication: Your attorney should keep you informed about the status of your settlement.
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Detailed Accounting: You are entitled to a breakdown of all deductions from your settlement.
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Prompt Disbursement: Once all obligations are met, funds should be disbursed without unnecessary delay.
If you believe your attorney is unreasonably delaying your settlement and something fishy is going on, you may file a complaint with the Florida Bar Association.
Frequently Asked Questions
Q: How long does it typically take to receive a settlement check in Florida?
A: Generally, an insurance company must send the check within 20 days after receipt of a signed release. You can expect to receive your settlement funds on average within 2-6 weeks after signing the settlement agreement, though this can vary based on case complexity of the bills and liens to be reduced or negotiated.
Q: Can my attorney hold my settlement check indefinitely?
A: No. Attorneys are obligated to disburse settlement funds promptly once all liens and fees are resolved.
Q: What should I do if I suspect my attorney is delaying my settlement without cause?
A: First, request a detailed explanation. If unsatisfied, consider filing a complaint with the Florida Bar Association.
Conclusion
The settlement process can take time so patience should be expected. Understanding the typical timeline and your rights can help alleviate concerns about your personal injury settlement. At Perkins Law Offices, we are committed to ensuring our clients receive their rightful compensation promptly and transparently. If you have questions about your settlement or need assistance, don’t hesitate to contact us.
