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Payment from Insurance Company after settlement of PI lawsuit

San Jose, CA |

Is it normal for the Insurance company to release the payment cheque on the name of my attorney's firm? What if he doesn't pay me after it is deposited into his account or demands more fees?

Attorney Answers 7


  1. Best answer

    Yes this is customary. The check should have your name and your lawyer or the law firm name as payees on the check. The lawyer deposits the check in their trust account and money is disbursed from there. The lawyer would face possible disbarment or serious trouble with the bar if they stole your money.


  2. Usually both names are on the check. The attorney will not keep your check. If they do, they will lose their license.

    The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of Alabama. Responses are based solely on Alabama law unless stated otherwise.


  3. Yes, this is the general practice of most insurance companies. Once the check has cleared the attorney's escrow account he will release your portion of the settlement. If he does not, you can report him to the Board of Professional Responsibility.


  4. Yes, it is customary. Do not fear not getting paid. Most lawyers are very ethical and want to do right by their clients.Unless you know that your attorney is not afraid of the California Bar.

    This answer is provided by California Accident Attorney Manuel A. Juarez, Esq., 510-206-4492. Abogado de Accidentes de Autos de California: 510-206-4492. Abogado de Lesiones de Accidentes de Autos, provides answers of a general context. These answers are not intended to form an attorney client relationship. Oakland Abogado Accidentes Autos, Abogado de Lesiones Personales, Abogado de Accidentes de carros, Abogado de accidentes de Peatones, practices in Antioch, Berkeley, Concord, Oakland, Hayward, Martinez, Newark, Richmond, San Francisco and San Rafael. El abogado de lesiones y heridos en accidentes de autos, is licensed only in California. This information is good only in California and it is not to be taken as legal advice on car accidents, personal injury, divorce, bankruptcy or in any other type of situation. Esta respuesta es del Abogado de Accidentes de Autos, Abogado de Lesiones Personales, Abogado de Heridos en Accidentes de carros, Manuel A. Juárez, 510-206-4492. Abogado Hispano de Accidentes, Abogado de Divorcios, Abogado Latino de Accidentes, Abogado de Accidentes de Oakland, Hayward, San Francisco, California. Estas respuesta son solo para información general y no consisten en consejo legal sobre divorcios, mantención de esposas, mantención de hijos o bancarrotas. Las respuestas son comentarios legales que no forman una relación de abogado y cliente. Manuel Juarez, Esq., esta licenciado solo en el Estado de California.


  5. Yes, it is standard, although sometimes insurance companies cut checks that should go to the attorney directly to the client, which is a bad thing.


  6. It is the normal process. Its the only way to assure that your attorney's firm gets paid. If they lag or there is a discrepancy in payment, go to www.calbar.org and read up on the issue.


  7. I agree with the answers above. The money will be deposited into the attorney or law firm's Trust/Escrow/IOLTA account, because a portion of the money is yours. Once the check clears, then the attorney will cut you a check for you share per the terms of the attorney fee agreement. Some attorneys will have the insurance company issue the check in yours and your attorneys firm's name both, which requires you to come in and sign the check for deposit. However, firms such as mine that handle cases state wide, often include a power of attorney clause in the attorney fee contract allowing us to sign for you so we can deposit the check into our trust account and save clients from having to make two trips (one to sign and deposit, and another to come pick up the disbursement check) because it is often the next day before we know if the check clears unless it is drawn on the same bank that we have our trust account with.

    The quickest way for an attorney to get disbarred is to misappropriate a clients money in a trust account.

    Attorney Stacy E. Pepper is licensed in all State and Federal Courts in Mississippi. He is a founding Partner in the law firm of Pepper & Odom, P.C. Nothing posted here constitutes any attorney client relationship and is meant for educational purposes only. Office hours are 8:00 a.m till 5:00 p.m. Monday through Friday. Phone: 601-914-9219 Facsimile: 888-456-2160 www.pepperodom.com