Q: When is a personal injury attorney required to disclose his costs in putting on the case?
Following a negotiated settlement, when the plaintiff's attorney disburses the funds to lien holders and themselves, shouldn't they provide a detailed breakdown of expenses and payments with the check to their client? If the settlement was negotiated in August and the disbursement check is dated in September, are they allowed to hold the check until February without paying interest on the money that was in escrow?
A:
Yes attorneys need to provide their clients a disbursal statement.
The settlement can take time to disburse once payment is received. For example to negotiate medical liens and no interest would be paid to the client. Otherwise, disbursal should occur immediately.
A: If the attorney held the funds in escrow, that interest doesn't usually go to the attorney or client. Law firms generally use IOLA accounts, where the interest would go to an IOLA Fund, used for public legal programs. Good luck
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