Understanding the Personal Injury Settlement Process

When an insurance company makes an offer, or a defense makes an offer to settle the case, and we accept the offer—we feel it’s fair value—generally what’s the next step is to sign a release. A release is just a legal document saying, “For this amount of money, I’m going to give up all claims against you.”

After that release is signed, we generally have to tender that to the defense, and within a week or two they’re going to tender a check back to us. That check is made out usually to our firm and the client. That needs to be deposited into our attorney trust account and has to clear for a certain amount of time under ethics rules.

During that time, we prepare what’s called a schedule of distribution, which is basically an accounting of what came in, our legal fees, all the expenses that come out, and the net amount to the client. That’s explained and gone over by our attorneys with the client. The client generally signs that, and then once the check’s cleared, we can distribute the check.

Sometimes there are medical bills that need to be negotiated on behalf of the client. Sometimes there are medical liens that need to be compromised. So the process doesn’t just end when you sign the paper and you accept an offer. What we do is we then compromise any outstanding medical bills—we’re calling every medical provider that you treated at—and for whatever reason, if your insurance doesn’t cover it, we go in and we contact them and ask them on your behalf to lower that bill.

At the end of the day, that doesn’t come to us—that comes directly to you. We’re not doing our job if we’re not maximizing the amount that you walk away with. At the end of the day, we’re here to do one thing, and that’s adequately compensate our client that has enlisted us in their fight.