Short Answer

In North Carolina, you finalize a personal injury settlement by putting the agreed terms in writing, signing a release that closes the claim, resolving all medical and insurance liens, exchanging funds through your lawyer’s trust account, and—if a lawsuit is filed—submitting a dismissal to the court. Do not sign or cash anything until lien payoffs, insurance consents (if any), and the exact release language are confirmed.

Understanding the Problem

You’ve reached a dollar figure in a North Carolina personal injury case and now need to close the file. The practical question is: how do you lock in the deal so the claim is truly over and the money can be disbursed? You (the injured person) want to sign the right paperwork, address any medical paybacks, and complete any court step if a lawsuit is pending. Here, the defense lawyer will email a release for signature.

Apply the Law

Under North Carolina law, a settlement is a contract. Finalizing it typically requires: a written release that identifies the parties and claims being resolved; satisfaction of valid liens and payback rights (for example, certain medical providers or benefit plans); proper handling of funds through an attorney trust account; and, if a case is on file, a voluntary dismissal with prejudice in the county court. If underinsured motorist (UIM) coverage might apply, you must notify the UIM carrier and obtain consent or allow the carrier to advance payment before releasing the at-fault driver.

Key Requirements

• Clear written release: Identify who is being released, which claims are covered, and whether confidentiality or non-disparagement applies.
• Lien and payback resolution: Address valid provider liens and any health plan, Medicare, or Medicaid reimbursement before disbursing funds.
• Payment logistics: Insurer issues the settlement check to your attorney trust account; funds are disbursed only after they clear and lien amounts are confirmed.
• Court closure if sued: If a lawsuit is pending, file a stipulation of dismissal with prejudice in the proper North Carolina court.
• UM/UIM coordination: Notify and obtain consent from your UIM insurer (or allow an advance) before releasing the at-fault driver.
• Capacity approvals: If the injured person is a minor or legally incompetent, obtain court approval of the settlement before signing the release.

What the Statutes Say

• North Carolina Gen. Stat. § 44-49 (Medical provider liens) - Recognizes certain medical provider liens against personal injury recoveries.
• North Carolina Gen. Stat. § 44-50 (Enforcement and limitations) - Addresses enforcement and limits related to those provider liens.
• North Carolina Gen. Stat. § 20-279.21 (UM/UIM) - Requires notice to a UIM carrier and allows consent or advancement before releasing the at-fault driver.
• North Carolina Rules of Civil Procedure, Rule 41 (Dismissal) - Governs voluntary dismissal to close a filed lawsuit.

Analysis

Apply the Rule to the Facts: You have an agreed amount and the defense lawyer will email a release. Before signing, confirm the release covers only the intended claims and parties and does not overreach. Work with your lawyer to identify and resolve any medical liens or paybacks tied to your lingering back treatment. After the release is signed and liens are set, the insurer can issue the check to your lawyer’s trust account; if a lawsuit is pending, file a dismissal with prejudice to close the court case.

Process & Timing

1. Who files: The injured party (through counsel) finalizes documents; if suit is pending, parties file a stipulation of dismissal. Where: Clerk of Superior Court in the county where the case is filed (District or Superior Court, as applicable). What: Signed settlement release; if sued, a Rule 41 stipulation of dismissal with prejudice. When: After lien amounts are confirmed and any UM/UIM consent or advance is obtained.
2. Your lawyer requests lien statements, confirms final payoffs, and negotiates reductions where possible. The insurer issues the settlement check payable to you and your law firm; it is deposited into the firm’s trust account. Allow several business days for funds to clear and lien confirmations to arrive; county processing time for dismissals can vary.
3. Your lawyer provides a written settlement statement, pays approved liens from trust, deducts fees and costs, and disburses your net funds. If a lawsuit was on file, the court docket reflects the dismissal with prejudice, closing the case.

Exceptions & Pitfalls

• Do not sign a release that waives unrelated claims or future claims you intend to preserve; ensure parties and claims are correctly listed.
• Address all liens (provider, health plan, Medicare/Medicaid) before disbursement; unpaid or unaddressed liens can delay payment or trigger later collection.
• If minors or legally incompetent adults are involved, obtain required court approval before signing; otherwise, the settlement may not be enforceable.
• For UM/UIM claims, get the UIM carrier’s consent or allow an advance before releasing the tortfeasor, or you risk losing UIM benefits.
• Confirm payee names on the check and provide any required W-9; errors can slow issuance or deposit.

Talk to a Personal Injury Attorney

If you're ready to close your injury claim and want to avoid release or lien mistakes, our firm has experienced attorneys who can help you understand your options and timelines. Call us today.

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.