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?
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.
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
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