Short Answer

Often, yes. In many North Carolina personal injury settlements, the injured person must sign at least a settlement release (and sometimes a settlement statement and lien-related paperwork) before the law firm can disburse funds from its trust account. Even when the settlement check has arrived, the firm may need signed documents and confirmation that required deductions (like medical liens) are handled before releasing the client’s portion.

Understanding the Problem

This question usually comes up when a Durham personal injury case has reached an agreement and the at-fault party’s insurer has sent a settlement check to the law firm. The key issue is whether anything still must be signed or confirmed before the firm can ethically and legally distribute the money—especially when the injured person cannot come to the office and wants documents emailed for digital signature and the check mailed to a confirmed address. This article focuses on what documents are commonly required and why the timing can depend on releases, liens, and trust-account rules.

Apply the Law

In North Carolina, settlement funds are typically deposited into a lawyer’s trust account and then disbursed according to the settlement terms and any valid third-party claims that must be paid from the recovery. In many cases, the insurer will not treat the settlement as final until a written release is signed. Separately, North Carolina law recognizes that certain medical providers may have lien rights that attach to settlement funds after proper notice, and the disbursing attorney may have duties to retain enough money to address those claims before distributing the remainder.

Key Requirements

• Signed settlement release (common): Many insurers require a signed release before they will issue payment or before the payment is considered final. The release usually states that, in exchange for the settlement amount, the injured person gives up the right to pursue further claims against the released parties for the incident.
• Written authorization for disbursement (common): Law firms typically provide a settlement statement showing the total settlement, attorney’s fee, case costs, and any payments to lienholders or other parties. The client’s signature confirms understanding and approval of how the funds will be distributed.
• Lien/claim resolution steps (sometimes): If there are medical-provider liens or other reimbursement claims tied to the injury, the firm may need additional signed documents (or at least final payoff figures) before it can safely release all funds.

What the Statutes Say

• N.C. Gen. Stat. § 44-50 (Medical provider liens attach to settlement funds) - Requires retaining sufficient funds to pay certain just and bona fide medical-related claims after notice, before disbursement.
• N.C. Gen. Stat. § 44-50.1 (Accounting/certification when paying lienholders less than claimed) - Describes information that may need to be provided to lienholders in certain reduced-payment situations.

Analysis

Apply the Rule to the Facts: Here, there is a pending North Carolina personal injury matter and the law firm has indicated a settlement check is ready. Even with the check in hand, the firm may still need signed paperwork—most commonly a release and a settlement statement—before it can distribute the funds. If any medical-provider liens or other claims were asserted with proper notice, the firm may also need to confirm amounts and how they will be handled before releasing the client’s portion.

Process & Timing

1. Early steps: The firm typically confirms the settlement terms in writing, requests the final release package, and gathers any outstanding bills/claims information that could affect the distribution. The firm also confirms the correct payee name(s) and a safe, verified mailing address if the check will be sent.
2. Claim stage: The insurer usually sends a release to sign (or confirms the release terms). The firm prepares a settlement statement showing the math of the distribution (fees, costs, and any payments to others). If liens/claims exist, the firm may request payoff letters or negotiate reductions and document the final amounts.
3. If a lawsuit is filed: If the case was in litigation, settlement may also involve dismissal paperwork filed with the court after the settlement is finalized. The firm still typically uses a release and a settlement statement, and then closes out the case after funds clear and disbursements are completed.

Damages & Insurance Issues

• Medical-related losses: Settlement funds often reimburse past medical expenses and may account for future care needs. If medical providers asserted lien rights after proper notice, some of the settlement may need to be held back and paid out accordingly.
• Income-related losses: Settlements may include compensation for time missed from work or reduced ability to earn income, supported by employment and wage documentation.
• Non-economic damages: Settlements may include compensation for pain and suffering and life impact. These items are not tied to a single bill, so documentation often includes records and descriptions of how the injury affected daily activities.
• Common insurance considerations: The insurer may require a signed release and may issue the check in a way that requires endorsement by the client and/or the law firm. Some checks are made payable to multiple parties, which can affect how quickly funds can be deposited and disbursed.

Exceptions & Pitfalls

• Some settlements require additional signatures beyond a basic release (for example, separate documents related to confidentiality, indemnity language, or resolving specific reimbursement claims). The exact paperwork depends on the settlement terms.
• Medical-provider liens can affect timing and the amount that can be immediately released. North Carolina law can require retaining funds for certain noticed claims before disbursement. See N.C. Gen. Stat. § 44-50.
• Delivery and security issues matter when a client cannot come to the office. Confirming identity, confirming the mailing address in writing, and using secure e-signature methods can reduce the risk of misdelivery or fraud.
• Signing a release usually ends the right to pursue more money from the released parties for the same incident. Questions about what the release covers should be resolved before signing.

Conclusion

In many Durham, North Carolina personal injury settlements, a settlement check cannot be released until the required paperwork is signed—most commonly a release and a settlement statement approving how the funds will be distributed. If medical liens or other valid claims apply, the firm may also need to confirm and handle those before disbursing all proceeds. The practical deadline is the paperwork: delays in signing can delay disbursement. Preserve copies of all settlement documents and speak with a licensed North Carolina attorney promptly.

Talk to a Personal Injury Attorney in Durham

If the issue involves injuries, insurance questions, or a potential deadline, speaking with a licensed North Carolina attorney can help clarify options and timelines. Call [CONTACT NUMBER] to discuss what happened and what steps may make sense next.

Disclaimer: This article provides general information about North Carolina personal injury law based on the single question stated above. It is not legal advice and does not create an attorney-client relationship. It also is not medical advice. Laws, procedures, and local practice can change and may vary by county. If there may be a deadline, act promptly and speak with a licensed North Carolina attorney.