Settlements are almost always offered when insurance companies are involved in Las Vegas car accident claims. The offer may be made before any lawsuit has ever been filed or may be made even after a case has gone to trial.
If you try to settle your claim independently, you can rest assured that the opposing party will present you with a settlement agreement that will heavily favor their interests. A skilled car accident lawyer will immediately notice any unfavorable terms and demand their removal.
Although no two settlement agreements are exactly alike, it is beneficial to understand the contents of a typical Las Vegas car accident settlement agreement.
Settlement Agreement
Once you settle a claim, you may sign the settlement agreement that marks the end of the legal process.
A settlement agreement is a binding legal contract between the parties that sets forth the terms of their agreed-upon settlement.
The agreement states that the lawsuit is settled or dismissed for a specific amount of money paid.
The settlement agreement can also stipulate the payment limits and plans, full liability release, confidentiality clauses, and other terms particular to the claim.
Once you sign the settlement agreement, there rarely is a turning-back option. The document can be set aside only in exceptional cases of fraud or mutual parties’ errors.
Payment plans
Payment options are a significant consideration. You need the settlement funds to pay bills and replace your income. You may choose to receive your compensation as a single large sum.
Alternatively, you may receive your compensation as a series of periodic payments in the form of a structured settlement, usually paid through annuities owned and administered by life insurance companies in Nevada. Structured settlement annuities are usually tailored to fit individual needs, considering the amount and frequency of payments and other factors. Once agreed upon, you cannot change the terms.
Liability Release Clauses
Settlement agreement release clauses are comprehensive.
They release any claims you, as the plaintiff, may have against the defendant.
You cannot bring the same claim again against the defendant.
Any insurance company, and other defendants, will insist that the settlement agreement permanently eliminates liability for injuries you didn’t know you had when you signed the agreement and
against parties you didn’t even know you could sue.
Although these terms are standard and probably unavoidable, your Las Vegas car accident attorney can help you understand exactly what rights you are giving up.
After these documents are signed, the insurance company will issue the check.
The Insurance Company Releases the Check
The insurance company is legally obligated to write the settlement check once it receives your release, but internal issues may slow this process.
Sometimes, the law may require interest on the funds from the date of the receipt of the release form, which incentivizes the defendant to pay promptly. Insurance companies have strict internal procedures for issuing checks. The company’s internal procedures control who will review your settlement agreement, make sure the release form is proper, legally protect the insured and the company, and then send the authorization to another department to process and mail your check.
The Check Arrives at Your Attorney’s Office
Once the check from the insurance company arrives at your attorney’s office, the attorney deposits the check into an escrow account. This ensures it has the funds to cover the check, so it remains there while the bank clears it. Once the check clears in the escrow account, your attorney can disburse the funds.
Your attorney will have to pay any outstanding liens first because the creditors can bring a civil suit against you if they don’t get paid. Liens may include unpaid medical bills related to your injury, child support, and attorney’s fees—for example, money owed to an attorney who provided legal services but was discharged.
Before hiring your attorney in Las Vegas, you should have reviewed and signed a contingency fee arrangement, which means the attorney’s legal fees are a percentage of the compensation if awarded. Your attorney will deduct their share from the settlement funds for the legal services that they provided and for any expenses that they advanced for the case, such as costs for filing fees, accident reconstruction, gathering and preserving evidence or medical records, costs related to discovery, expert witnesses, and other services necessary for trial preparation.
Potential Delays in Receiving a Settlement Check
The time it takes to receive a settlement check varies from one case to another.
Delays happen because there is a dispute regarding the release form, the case involves a minor or an estate, your attorney is negotiating the amount of a lien, the settlement and release agreement was not properly signed and returned, an insurance company office in one state processes the claim, and an office in another state issues the check, clerical errors, or even the concerned claims adjuster in charge of your case may have left for a vacation without forwarding your documents for the necessary approval.
You Receive Your Settlement Check
After your attorney deducts all liens, fees, and expenses, they will write you a check for the remaining settlement amount. Consider consulting a tax expert to determine the tax consequences, if any, of your settlement money.
You can now turn a new page in your life.
Pacific West Injury Law – We Make Sure Your Life Does Not Stop Just Because Of A Car Accident
Whether minor or extreme, car accidents can profoundly affect those involved. There is a range of emotions that can emerge from this horrific experience.
A motor vehicle accident can cause psychological trauma for a very long time.
It is normal to struggle with the feeling that the situation is unfair. You may feel an intense desire to pursue justice.
The fastest way to bring your case to the best ending is to seek guidance from an experienced lawyer at our Las Vegas personal injury law firm.
Your attorney will expedite the process by preparing and providing the necessary documents. You should review these documents carefully.
If you or a loved one was injured in a car accident due to someone else’s negligence in Las Vegas, Henderson, or North Las Vegas, you may have grounds to sue those you believe are responsible.
It is essential to seek the advice of a car accident lawyer to understand the challenges you will face and to make sure you know the emotional and financial ramifications involved and the likelihood of a legal win before you begin.
Winning or settling such a case can provide you and your family with a financial settlement and closure.
Call our firm’s experienced Las Vegas car accident lawyer for a free case evaluation.