Short Answer: The lawyer within 30 days of reaching an agreement.
Long Answer: Below
On a Kentucky personal injury case the insurance company for the defendant usually sends the settlement check direct to the lawyer. The check will say to “Client First Name Client Last Name and Law Firm.” This blog post discusses the process of getting a settlement check when you settle a case.
Agreement
A lawyer cannot resolve your case without authority. Once settlement authority is provided and an agreement is met the insurance company will send a release. This document outlines how much they are paying and what you are giving up in return. In very simple terms you are giving up the right to sue for more money.
It normally takes the insurance company a few days to draw up the release. If your case is in litigation the lawyer on the other side writes the release. This normally takes longer. The insurance defense lawyer will also send an Agreed Order of Dismissal telling the judge the case is resolved.
The other side has thirty days to send a check and release. It normally takes ten to fifteen business days. I do not control how fast they send the check or write up the paperwork. My job is to get the paperwork on my side ready. This paperwork is called the Closing Documents.
Closing Documents
This paperwork outlines where your money is going. At the top will be the settlement amount. Below that are normally categories for attorney fee, attorney cost, and outstanding medical bills. At the end is the amount of settlement. You should have already went over this number with your lawyer OR authorized a settlement of a certain amount.
The Closing Documents will also outline who is responsible for any outstanding medical bills. Pretend you never told your lawyer about a medical provider. A lawyer can’t account for an unknown bill. The language in the closing document will relay that you, and not the lawyer, is responsible for the bill. This is why it is very important to tell your lawyer about all medical providers. This document can also instruct your lawyer to release funds to you and place the burden of payment on the client. This happens when there is not a lien.
Payment Timeframe
It is possible to instruct the insurance company that payment must come within a certain timeframe. This is a part of the settlement negotiation. If time is of the essence a fourteen or ten day timeframe can be negotiated.
Negotiated Medical Bills
Just because the settlement amount has been reached does not mean the case is fully resolved. Your lawyer may be able to negotiate medical expenses. Doing this before or after settlement can make sense depending on the facts.
Motion to Enforce Settlement
If you reach a settlement and the other side does not pay on time the lawyer may file a Motion to Enforce Settlement. This is a court document that says (in fancy language): “Judge we reached an agreement and they won’t’ pay. Please make them do it ASAP.”
I have filed this type of motion a few times. It is NOT normal.
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