What Usually Must Happen Before Payment
- Settlement terms confirmed: The insurer and your lawyer confirm the amount being paid and what claims are being resolved. Your lawyer should review the paperwork carefully so the release matches what you agreed to settle.
- Documents signed: The insurer typically sends a settlement release to your law firm. Once it’s signed and returned, the insurer issues the settlement check and sends it to the firm’s mailing address.
- Liens/reimbursements addressed: Before money is paid out to you, your lawyer usually checks for valid claims that must be paid from the settlement (for example, certain medical payment reimbursement claims). This step can affect how quickly funds can be distributed.
- Disbursement: The settlement check is deposited into the law firm’s client trust account. After the funds clear and the settlement is finalized, the firm prepares a settlement statement showing the gross settlement, case costs (if any), attorney fee (if any), lien payments (if any), and the net amount to you—then issues the appropriate payments.
What Can Cause Delays
- Missing signatures on the release or other settlement paperwork.
- A joint-payee check that requires your endorsement (or other authorization) before it can be deposited.
- Questions about whether a reimbursement claim or lien is valid, and if so, the correct payoff amount.
- Bank “clearing” time after the check is deposited into the trust account.
- Insurer processing time to issue and mail the check after receiving the signed release.
Liens and Reimbursement Claims (Plain English)
A “lien” or reimbursement claim is a demand that part of the settlement be used to repay certain bills that were paid (or claimed to be paid) because of the injury. In practice, your lawyer often has to identify these claims, confirm what is actually owed, and resolve them before distributing the rest of the funds. This is one reason insurers and law firms often prefer a joint-payee check or a check routed through the firm—so the settlement is handled through the trust account process with a clear paper trail and client approval for disbursement.
How This Applies
Apply to your facts: Because the insurer plans to send the release to the law firm and mail the check to the firm in North Carolina, it is common for the check to be made payable to you and the firm. The insurer may request identifying information to ensure the payee name matches the release and to avoid re-issuing the check. After the check is received, it is typically deposited into the firm’s client trust account, and then the firm disburses funds based on a written settlement statement and your approval.
Conclusion
When you have a lawyer handling a North Carolina injury claim, the settlement check is often written to both you and the law firm and sent to the firm, so it can be deposited into the client trust account and properly disbursed. That process helps document the settlement, confirm the release terms, and address any valid liens before you receive your net proceeds. One practical next step is to ask your lawyer how the check will be titled (joint payee or firm trust account) and what endorsements or approvals they will need from you to distribute funds.
