Personal injury settlements in Nevada are generally paid out of a client trust account set up by your personal injury attorney in Henderson.
The settlement amount is paid to your attorney’s trust account, where funds are briefly held. The attorney deducts case-related expenses and attorney fees from the gross recovery, as agreed upon in your contract for representation.
Then, liens are settled, meaning that anyone who has a claim to compensation in your case is reimbursed. Most often, this involves healthcare insurance carriers who’ve paid for your medical bills or other parties that covered some of your damages before your personal injury case was resolved.
Once contingency fees, costs, and other expenses are deducted, your attorney cuts you a check, digitally or physically, for the remainder, which is known as your net recovery.
How Are the Terms of a Personal Injury Settlement Resolved?
Your personal injury settlement is actually a contract. It’s a legal agreement between you and another party – usually an insurance company – to resolve a civil dispute for compensation.
Settlement negotiations take time, and parties generally go back and forth discussing the terms. Those terms include the damages you’ve suffered, what they’re worth, and whether they need to be reduced for any reason, such as comparative fault or a failure to mitigate losses.
The insurance carrier usually tries to push a lowball offer before you really appreciate the extent of your injuries, how long you’ll need medical treatment, and how those injuries will affect your life for weeks, months, or years to come. You’ll have to sign a release to give up the right to seek additional compensation in the future when you agree to settle, so it’s important to be patient. Working with an experienced Henderson motorcycle accident lawyer near you is the best way to protect your rights, force meaningful negotiations, and put the most money in your pocket after an accident.
As long as the settlement agreement is lawful, it can be legally enforced by the courts of the state of Nevada. This means that neither party can back out once the settlement agreement is signed. Once the agreement is formalized, the insurance company has 30 days to issue payment to your attorney’s trust account for your benefit.
Are Personal Injury Settlements Always Paid in a Lump Sum?
Usually, but not always. There are two types of settlements: lump sum and structured. Lump-sum payments mean you receive your entire financial award all at once, after fees and liens are deducted. Structure settlements are paid out over time until the full value of your claim has been awarded.
Whether or not you receive a lump sum or a structured settlement can be part of the settlement negotiations. An experienced Nevada personal injury attorney can help you determine which strategy is best for your situation, taking assignments, fees, and liens into consideration.
Benson & Bingham has helped clients across the state of Nevada win over $600 million in settlements and jury awards. When you’ve been hurt because of another’s negligent or wrongful actions, we can help you fight for a meaningful financial recovery, too. Contact our law office in Las Vegas or Reno to discover how we can help you maximize your settlement. Your first consultation is free.