What Happens After You Settle a Case
The vast majority of cases settle before a jury ever considers the matter. Usually, the settlement process can take an extended amount of time, since there is much back and forth between the parties when resolving a case. However, even after a settlement is reached, it can typically take weeks or months for the case to be formally resolved and all relevant parties to be paid. Indeed, there are a few things to consider when asking what happens after you settle a case.
Settlement Paperwork
The first thing that usually happens after you settle a case is that settlement paperwork must be negotiated and executed. Settlement documents typically involve a broader settlement agreement that governs the entire settlement process, and waivers and stipulations that parties and their attorneys execute as well. The broader settlement agreement usually lays out all of the paperwork that needs to be signed, when the paperwork must be completed by, and the amount of money that will be paid when all of the settlement steps are completed.
A release is a more targeted agreement that can be part of a broader settlement agreement, but is usually executed as a separate document. The release waives any right a plaintiff has to seek further compensation for the lawsuit, other than the compensation agreed to in a settlement agreement. At this stage, the attorney might also have to execute a stipulation of discontinuance that will be filed with the court when all of the settlement steps are completed. A skilled attorney will be able to negotiate a settlement agreement and ensure that a client is giving up no more rights than are absolutely necessary to resolve a matter.
Payouts to Clients and Third Parties
After you settle a case, and all of the settlement paperwork has been executed, the defendant or their insurance company will usually send a check with the settlement funds to the plaintiff’s attorney. The plaintiff’s attorney will typically deposit this money into their attorney trust account for safekeeping while the next phase of the settlement process plays out. Depending on the case, third parties such as Medicare, Medicaid, and others may have a claim to part of the settlement proceeds. There are some ways to negotiate these liens down, and to eliminate charges from third parties that are not directly related to litigation. However, attorneys must typically hold settlement money in escrow until monies owed to third parties are calculated and paid.
After you settle a case, and all third parties have been paid, the attorney calculates how much money the client should receive and how much money is paid to the client. This calculation is based on the retainer agreement that is negotiated between the client and attorney at the beginning of the representation. In a contingency case, when an attorney is entitled to a percentage of any recovery, expenses paid by the attorney are typically deducted from the total amount of the recovery. Then, the attorney pays the client the amount of money to which they are entitled, and the attorney pays himself or herself last. Some states require that attorneys provide clients with a statement showing all of the deductions made to a recovery after a case is settled. Some jurisdictions, like New York, require that attorneys file such closing statements with a government office so that there is oversight over where money is being directed after a case is resolved.
Closing the Case
After you settle a case, the attorneys will also file paperwork official closing the case. This is usually called a stipulation of discontinuance, and it is an agreement between the parties to discontinue the case due to a settlement between the parties. Generally, parties can agree to discontinue a case on their own, but there are some instances when courts need to approve the discontinuance of a case. A skilled litigator should know how to deal with settlements and ensure that the proper process is followed so that a matter is properly resolved after the conclusion of a case.
Dealing with Files
Firms have different practices when it comes to handling the files of a case after a matter has been concluded. Some states require that certain documents related to a matter be kept for several years or longer, so that if there are any questions about the matter, these materials are available to be examined. However, most firms have a policy of simply keeping most case files for a few years before destroying the materials. As a result, if you wish to keep case materials in the possession of your attorney after the case has been resolved, you should let your lawyer know in writing as soon as possible.
In addition, some cases about sensitive topics might have orders that require confidential materials related to the case be destroyed within a short time after a case has been resolved. In such instances, lawyers will review their files and destroy all materials that are subject to a court order requiring that these documents be destroyed.
The Rothman Law Firm has substantial experience dealing with all of the stages of a lawsuit, and we have settled a number of matters. We know how to follow all of the steps involved in the settlement process and ensure that our clients receive their settlement money as soon as possible. If you are looking for a New York and New Jersey attorney to handle your lawsuit or other legal matter, please feel free to contact The Rothman Law Firm to request a free consultation.