Q: I was given a settlement due to a car accident. Today when I was called in to get my check, I was told I needed to sign
the full settlement check first and they would need to deposit it into their account and wait for it to clear before I would be issued my check. Is this normal?
A: It sounds like your attorney needed your indorsement on the back of the check to deposit it in an escrow account, from which an attorney's check would be issued to you as your net award, and another check issued to the law firm for their legal fees and out-of-pocket disbursements. It all depends on how the check was originally issued by insurance carrier and how it listed payees (and, or, or with other joint terms). It isn't always necessary, but it isn't unusual. Good luck
A: Yes. They would normally have a settlement sheet outlining costs. The other reason is that in some cases there may be liens ---for instance if Medicare paid some of the bills. But discuss all this with the attorney.
A: Yes, this is normal. Attorneys usually have to deposit the funds into a trust account first to clear. The only way that would not occur would be if the insurance company provided separate checks for everyone with a lien/interest in the settlement amount.
Attorney James J. Hux
Hux Law Firm, LLC
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.