May 2, 2017
While there are many important facets of a personal injury claim, the monetary award is likely one of the most important to you, the client. The vast majority of personal injury claims result in settlement. The question then becomes what happens with those settlement funds and what is the bottom line (that is, how much you will pocket after all other costs are paid). Generally, there are 3 costs that are paid out of a gross settlement: (1) attorney fees, (2) perfected liens, and (3) costs and expenses paid by your attorney in the pursuit of your claim. Of the total settlement amount, attorney fees are taken out first. Typically, attorney fees are 33⅓ in the event the case settles prior to filing suit. Here at King Law Offices, however, our fees are only 33% in a similar case.
After attorney fees are withdrawn from the gross settlement amount, outstanding and perfected liens must be satisfied. It is important to know the type of lien that has been asserted onto your award. The amount that is to be paid from your award to satisfy the outstanding lien depends on the type and nature of the lien at issue. Consequently, you should speak with a lawyer to ensure that your interests are protected while satisfying statutory obligations related to your award. For general medical liens, North Carolina has enacted North Carolina General Statutes §§ 44-49 and -50. Under these provisions, no more than ½ of the monies remaining after attorney fees are taken out of the award are required to be paid to satisfy the liens. For a deeper look into medical liens in North Carolina, please see the “Medical Liens in Personal Injury Claims” blog.
Once any perfected liens are satisfied to the extent permitted under applicable law, any costs that were paid by your attorney’s office in the pursuit of your claim will likely be reimbursed to the firm. All monies remaining will be paid out to you.
Attorney Taylor Simmons works at King Law Office’s Charlotte office and handles all of the firm’s personal injury cases. To set up an appointment to speak with Attorney Simmons regarding your personal injury matter, please call 828-286-3332.