Short Answer

In North Carolina, your attorney should confirm the settlement terms in writing, review and negotiate the insurer’s release, and resolve all medical liens and subrogation claims before disbursing any funds. They will deposit the check in a trust account, pay approved liens and costs, and issue you a written closing statement with a full accounting. Special approvals apply if a client is a minor or legally incompetent, and government benefits (Medicaid/Medicare) must be cleared first.

Understanding the Problem

You want to know what your North Carolina personal injury attorney should do to button up and document your settlements. The key decision point is what happens after an offer is accepted: who signs what, who gets paid, and when funds can be released. Here, one client accepted a settlement offer while the other’s offer is still under review, so you need next steps for the accepted case and proper follow‑up for the pending one.

Apply the Law

Under North Carolina law, finalizing a personal injury settlement is largely an out‑of‑court process for competent adults, but it must honor statutory medical liens and any government recovery rights before money is disbursed. The insurer typically requires a signed release; your lawyer must also identify, verify, and resolve all liens (medical providers, Medicaid, Medicare, State Health Plan, and contractual subrogation) and then account for the funds through a client trust account. Court involvement is required if a client is a minor or incompetent, or for certain workers’ compensation settlements.

Key Requirements

• Written terms and release: Get the settlement terms confirmed in writing and review the insurer’s release; negotiate out overbroad indemnity or confidentiality where appropriate.
• Lien identification and resolution: Gather and verify all medical provider liens and benefit recoveries; request final demands; negotiate reductions; obtain written lien releases.
• Trust accounting and disbursement: Deposit funds to attorney trust, pay approved liens and costs, deduct agreed fees, and provide a written closing statement to the client.
• Special approvals: If the client is a minor or incompetent, obtain court approval and follow clerk directives for holding or disbursing funds; workers’ compensation settlements require agency approval.
• Separate matters and documents: Keep each client’s settlement file, release, deposits, and accounting separate; do not commingle steps or funds.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider liens) - Gives providers a lien on injury settlements for reasonable and necessary treatment.
• North Carolina Gen. Stat. § 44-50 (Distribution and attorney obligations) - Requires attorneys with notice to protect valid liens and addresses how settlement funds are shared among fees and liens.
• North Carolina Gen. Stat. § 108A-57 (Medicaid subrogation) - Sets the State’s right to reimbursement for Medicaid payments from liability settlements.
• North Carolina Gen. Stat. § 7A-111 (Clerk’s receipt of minor funds) - Allows the Clerk of Superior Court to receive and manage certain funds owed to minors when ordered or applicable.

Analysis

Apply the Rule to the Facts: For the client who accepted the offer, your lawyer should promptly secure the written terms, review the release, and start lien resolution (providers, Medicaid/Medicare/State Health Plan where applicable). Only after final demands are received and paid should the lawyer disburse net funds and deliver a closing statement. For the client still under review, counsel should update the adjuster with recent bills and records, keep liens current, and continue negotiations—keeping both claims and any settlement proceeds strictly separate.

Process & Timing

1. Who files: Your attorney. Where: Out of court for competent adults; court involvement may be needed for minors/incompetents (Clerk of Superior Court) or workers’ compensation (Industrial Commission). What: Insurer’s settlement release; client W‑9/payee instructions; written lien confirmations/demands; closing statement. When: After written acceptance, request the release and immediately start lien/benefit payoff requests; government lien responses often take several weeks.
2. Insurer issues the settlement check (sometimes separate checks to lienholders). Attorney deposits to trust, verifies final lien amounts, negotiates reductions if possible, and obtains written releases.
3. Attorney pays approved liens and costs from trust, deducts the agreed fee, disburses the client’s net, and provides a written settlement statement itemizing all receipts and payments. If a client is a minor/incompetent, seek approval and follow the clerk’s instructions for holding or disbursing funds.

Exceptions & Pitfalls

• Minors or incompetents: Settlements generally require court approval; funds may need to be deposited or restricted under a court order, including possible management by the Clerk for certain minor funds.
• Unresolved liens: Failing to honor valid provider or Medicaid liens can delay payment and create attorney liability; always get written payoff confirmations and releases.
• Medicare issues: Address conditional payments and any future medical considerations; do not disburse until the final demand is paid or reserved.
• Release traps: Watch for broad indemnity, confidentiality, or hold‑harmless language that shifts lien risk to the client; negotiate fair terms.
• Two clients, one insurer: Keep negotiations, releases, deposits, and accountings separate; manage any potential conflicts and obtain informed consents where required.

Talk to a Personal Injury Attorney

If you're dealing with insurance offers, lien payoffs, or finalizing a settlement, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at [919-341-7055].

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