What is the Settlement Check Process in a Personal Injury Case?
Brandon J. Broderick, Personal Injury Attorney at Law
It's almost guaranteed that you have to wait for the legal process to play out after being injured in an accident and filing a personal injury claim. This could be anything from a car accident to a construction site accident. As you probably realize, a lawsuit may take several months or perhaps years to resolve. But, what happens when your lawsuit or settlement has been resolved? What is the process and what should you expect next?
The defendant likely has liability insurance that covers losses related to the accident if your personal injury suit has reached a settlement or you have gone to court and won a judgment. Your attorney will simply wait for the insurer's settlement payment to arrive in the mail after a settlement has been reached in a personal injury case. It's different if you've won at trial, because there's an appeals process that you may have to wait through before a payment for the awarded damages is distributed.
Here, we will explain the process so you get a better understanding of what the next steps are. Of course, if the attorney team at Brandon J. Broderick, Attorney at Law, is representing you, we will walk you through everything. We take great pride in providing our clients with top-notch legal service. Schedule a call with one of our personal injury attorneys today.
If a Settlement Was Reached
The attorneys will notify the court that the matter was settled if you file a personal injury lawsuit and you and the defendant strike a settlement agreement prior to trial. Then, depending on the local laws, the court will issue an order of settlement requiring the parties to execute all settlement documents within 60 days. The Release is the most important document for your settlement.
What is the Release?
The attorney hired by the defense creates a document called the Release that outlines the conditions of the settlement. Although there is no legal reason why it can't be a very short document, some defense attorneys and insurance companies insist on a lengthy form filled with legalese. The Release will be given to your attorney for review and they will either accept the terms, or dispute specific elements of the form and request changes. Generally, both sides will come to an agreement, but if not, they will ask the judge to step in, which can cause delays.
Your attorney will send the Release to you for signature after it has been approved. Normally, you must sign it in front of a notary. You should thoroughly read it and go over it with your attorney before signing it to ensure that all of your concerns or requests have been addressed. The conditions and content are final after the agreement has been signed and sent back to the defense lawyer.
Before Receiving The Settlement Check
Any personal injury lien must be paid before your attorney can give you your portion of the settlement. A lien is a legitimate claim to another person's property. This may be a medical or governmental lien, which are typically the two types of liens that are present in personal injury claims. Health care providers and health insurers who paid for medical care in connection with your accident will hold medical liens. Governmental liens are typically issued by a child support enforcement agency, Medicare, or Medicaid.
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Prior to the plaintiff receiving any proceeds from the settlement, liens typically need to be satisfied.
Examples of liens that are paid before you may be:
Should I Accept a First Settlement Offer?
You need to be aware of the value of your case before choosing whether or not to accept a settlement offer. Until you learn what your medical costs, lost wages, and other losses are, an offer could seem like a lot of money. But, what if you require future medical treatments or are unable to perform the same work duties you were able to before the accident?
Always consult with an attorney before accepting any amount in settlement and ask questions.