Corbin Sutter Accident Lawyers

A Florida personal injury case can be settled even though several required steps remain before the client's net proceeds can be distributed.

The settlement may still need to be documented, the insurance company must issue payment, the funds must be properly handled after they are received, and any valid liens, reimbursement claims, fees, costs, or other obligations affecting the proceeds may need to be resolved.

Some settlements move through these steps relatively quickly. Others take longer because of the particular insurance, medical, lien, court-approval, or other issues involved.

If you have been told, “Your case settled,” but you are still waiting for your money, the key question is usually which part of the post-settlement process is still unfinished?

What Happens Between Settlement and Payment?

The process varies from case to case, but a typical Florida personal injury settlement may move through steps like these:

Settlement reached → release and settlement paperwork completed → insurer issues payment → law firm receives settlement funds → funds are properly handled through the trust account → applicable liens, reimbursement claims, fees, costs, and other obligations are addressed → closing statement is completed → client's net settlement proceeds are distributed

The important distinction is simple:

Agreeing on a settlement amount is not necessarily the same thing as having money that is immediately available for the client to spend.

What Happens Immediately After a Florida Personal Injury Case Settles?

After the parties agree on the settlement amount, the settlement usually still needs to be documented and completed.

Depending on the case, the insurance company or defense attorney may prepare a settlement release. The client and attorney can review the documents, required signatures can be obtained, and the completed paperwork can be returned.

Then the insurer must process and issue the settlement payment.

Florida has a specific statute addressing this stage. Under Florida Statute § 627.4265, when a person and an insurer agree in writing to settle a claim, the insurer generally must tender payment according to the settlement agreement within 20 days. Payment may be conditioned on the claimant executing a mutually agreeable release, and the settlement agreement itself may provide another payment date.

That does not mean every Florida personal injury client must receive their net settlement proceeds within 20 days.

The statute addresses the insurer's tender of settlement payment. Additional work may still remain before the client's share can properly be distributed.

Why Doesn't My Lawyer Give Me the Money as Soon as the Settlement Check Arrives?

Because receiving the settlement payment and determining what can properly be distributed to the client are two different steps.

Settlement proceeds may include money in which the client, the law firm, or a third party has a legitimate interest. Depending on the case, that may involve an agreed attorney fee, case costs, a valid reimbursement claim, or another legally recognized interest.

Florida lawyers have professional obligations governing how those funds are safeguarded and distributed.

That is why a law firm generally cannot treat the arrival of a settlement check as the same thing as receiving money that is immediately free to distribute.

“One of the things clients sometimes find surprising is that reaching the settlement amount doesn’t always mean the work is over. We may still need to make sure the funds are properly accounted for, determine whether anyone has a valid claim against part of the recovery, and make sure the client understands exactly how we arrived at the final amount being distributed.”

— Corbin Sutter, Personal Injury Attorney

Why Is Personal Injury Settlement Money Put Into a Trust Account?

A lawyer's trust account is designed to keep money belonging to clients and third parties separate from the lawyer's own money.

Under Rule 5-1.1 of the Rules Regulating The Florida Bar, lawyers must hold client or third-party funds received in connection with a representation in trust and separate from the lawyer's own property.

That provides an important safeguard and helps ensure that settlement proceeds are properly accounted for before distribution.

For example, part of the settlement may represent an attorney fee earned under the representation agreement. There may be case costs that must be accounted for. Another portion could be affected by a valid Medicare, Medicaid, medical-provider, health-plan, or other third-party claim.

Where a legitimate dispute exists over part of settlement proceeds and the lawyer has a legal duty to protect the third party's interest, the disputed portion may need to remain protected while the issue is resolved.

Importantly, that does not necessarily mean all of the settlement money must remain tied up whenever there is a dispute over one portion.

Florida's trust-account rules call for undisputed funds to be distributed to the appropriate person while disputed funds remain protected.

Can Medical Liens or Reimbursement Claims Delay My Settlement Payment?

Yes. In some personal injury cases, determining and resolving valid claims against settlement proceeds can be one of the most time-consuming parts of the post-settlement process.

The important word is valid.

An outstanding medical bill and a legally enforceable right to receive money from settlement proceeds are not necessarily the same thing.

That distinction matters in real injury cases. After more than 35 years representing injured people in Southwest Florida, All Injuries Law Firm has seen why the final accounting cannot simply treat every outstanding medical balance as though it automatically has the same legal status.

Depending on the circumstances, potential third-party interests can involve Medicare, Medicaid, certain health-plan reimbursement rights, medical providers, contractual arrangements, court orders, or other legally recognized claims.

The law firm may need to determine:

• whether a claim against the proceeds actually exists;
• how much is claimed;
• whether that amount is correct;
• whether the claim is enforceable;
• whether the amount is disputed; and
• what must properly be paid from the settlement.

The Florida Bar has specifically addressed this issue in the context of personal injury settlements.

Florida Bar Ethics Opinion 02-4 explains that there is no single bright-line rule covering every third-party claim to settlement funds. Where a lawyer owes a legal duty to a third party asserting an interest, disputed funds may need to remain in trust until the dispute is resolved.

That is one reason a settlement can be finished from the client's perspective — the amount has been agreed upon — while legal and accounting work is still happening behind the scenes.

Can My Lawyer Try to Reduce Medical Bills or Claims After Settlement?

Sometimes. A lawyer may be able to negotiate or otherwise resolve certain medical bills or third-party claims, but whether a reduction is available depends on the type of obligation and the circumstances.

In appropriate situations, a lawyer may work with a medical provider or other third party to determine the proper amount that must be paid from settlement proceeds and may seek a reduction on the client's behalf.

But a reduction is not automatic or guaranteed.

Different liens, reimbursement rights, medical bills, assignments, and other claims can be governed by different rules. A law firm also cannot simply ignore a valid third-party interest in order to distribute more money to the client.

The goal is to determine what legitimately must be paid and resolve those obligations correctly before the case is closed.

What Comes Out of a Personal Injury Settlement Before the Client Gets Paid?

The gross settlement amount and the amount the client ultimately receives are usually not the same.

Depending on the particular case and representation agreement, the accounting may include:

Not every settlement includes every type of deduction.

That is one reason clients should receive an accounting of their particular settlement rather than trying to estimate their net proceeds from the gross settlement number alone.

What Is a Personal Injury Settlement Closing Statement?

The closing statement shows how the gross settlement amount becomes the client's final net recovery.

In a contingency-fee personal injury case, the statement can identify items such as the settlement amount, attorney fees, case costs, applicable payments from the proceeds, and the net amount going to the client.

This is more than an informal courtesy.

Florida's contingency-fee rules require a closing statement containing specified information, and Florida Bar Ethics Opinion 02-4 notes that distributions in contingency-fee cases cannot be made until the client signs the closing statement required by Rule 4-1.5(f)(5).

For the client, the practical value is transparency.

The closing accounting lets the client see how the case moved from the gross recovery to the net proceeds the client receives.

How Long Does It Take to Receive Personal Injury Settlement Money in Florida?

There is no single number of days that accurately describes every Florida personal injury settlement.

It is more useful to look at the separate stages involved:

1. Settlement and release completion — Are the settlement terms final and have the necessary documents been signed?
2. Insurer payment — Has the insurance company actually issued the settlement payment?
3. Receipt and proper handling of the funds — Has the law firm received the money and completed the necessary trust-account processing?
4. Lien and reimbursement resolution — Are there valid claims against the settlement proceeds that still need to be determined or resolved?
5. Closing accounting — Has the final settlement statement been prepared and completed?
6. Distribution — Are the client's net proceeds ready to be released?

Florida Statute § 627.4265 provides an important rule at the insurer-payment stage. When the insurer and claimant have agreed in writing to settle, the insurer generally must tender payment according to the agreement within 20 days, subject to the statute's provisions concerning releases and different payment dates established by the agreement.

But this distinction is crucial:

The deadline governing an insurer's tender of settlement payment is not necessarily a promise that the client receives their net settlement proceeds on that same date.

A valid lien or reimbursement issue, for example, can remain even after the insurance company has paid.

“When a client asks us when the settlement money will arrive, the first thing we need to know is where the case is in the process. Has the insurer paid? Are the funds in trust? Is there a reimbursement claim still being resolved? Once you identify the unfinished step, the delay usually becomes much easier to explain.”

— Corbin Sutter, Personal Injury Attorney

So rather than relying on a generic claim that every settlement should be paid within a certain number of days, ask which stage your particular settlement has reached.

Why Can Settlement Money Still Be Delayed After I Signed the Release?

Signing the release may complete an important part of the settlement process, but other steps can remain.

Depending on the case, distribution can still be affected because:

• the insurer has not yet tendered payment;
• payment is still being processed;
• the settlement funds have not yet been received or completed necessary banking and trust-account processing;
• a lien or reimbursement claim remains unresolved;
• a medical-related obligation affecting the proceeds still needs to be addressed;
• additional settlement documentation is required;
• a third party disputes who is entitled to part of the funds; or
• court approval or another special legal procedure is required.

A delay therefore does not automatically mean something has gone wrong.

The more useful question is what specifically remains unfinished?

Are Settlements for Children or Certain Other Cases Different?

Yes. Some personal injury settlements require additional procedures before the money can be distributed.

Settlements involving children are an important example. Florida law provides additional protections for certain settlements involving minors, including guardian-ad-litem and court-related requirements in particular circumstances.

Other unusual settlement circumstances can also require additional steps.

These procedures can affect the timing and manner in which settlement proceeds are handled, which is another reason there is no universal post-settlement payment timeline that applies to every Florida injury case.

What Should I Ask My Lawyer If My Settlement Money Hasn't Arrived?

If your case has settled and you do not understand why you are still waiting, you do not need to guess.

Ask where the settlement stands.

Useful questions include:

• Has the release and all required settlement paperwork been completed?
• Has the insurance company issued the settlement payment?
• Has the law firm received the settlement funds?
• Are any liens or reimbursement claims still being resolved?
• Are any medical obligations affecting distribution?
• Is a third party claiming part of the settlement proceeds?
• Is court approval or another special procedure required?
• Has my closing statement been prepared?
• Is there anything you still need from me?

Those questions can quickly identify the difference between an insurer that has not yet paid, a settlement that is still being processed, and funds that have been received but cannot yet be fully distributed because another issue remains.

Settlement Is a Major Milestone, but It May Not Be the Last Step

Clients understandably may think that agreeing on the settlement amount means the case is completely finished.

In practice, a personal injury law firm may still need to complete settlement documentation, receive and properly account for the funds, resolve applicable claims against the proceeds, and prepare the final closing statement before the client's portion can be distributed.

At All Injuries Law Firm, we have represented thousands of injured people during more than 35 years of serving Port Charlotte, Fort Myers, and communities throughout Southwest Florida. That means our work does not stop when the parties agree on a settlement number. Helping a client understand the final accounting, addressing issues that legitimately affect the proceeds, and bringing the case all the way through distribution are part of finishing the job.

If your case hasn't settled yet and you are wondering what may still need to happen before a resolution is possible, read Why Isn't My Florida Personal Injury Case Ready to Settle Yet?

You can also learn more about our personal injury practice, meet our attorneys, or review examples of results obtained for injured clients.

For prospective clients who have been seriously injured and have questions about a potential Florida personal injury claim, call (941) 625-4878 or contact our Port Charlotte or Fort Myers offices.

Victory for the Injured is about more than reaching a settlement figure. For someone who has spent months dealing with medical treatment, insurance issues, lost income, and uncertainty, finishing the case can also mean reaching the point where they have the information and resources needed to move forward with greater stability and peace of mind.

This article provides general information about Florida personal injury settlements and is not legal advice. The steps, obligations, and timing involved in a particular settlement depend on the facts, agreements, applicable law, insurance issues, and other circumstances of that case.