Legal Question in Personal Injury in California

how long can a lawyer hold the settlement money from an injury case after the case has been settled? is it legal to hold the money for more than a month?


Asked on 8/25/09, 7:18 am

2 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

The attorney has an obligation to disburse the funds within a reasonable time after receipt. It might be that the attorney is waiting to hear back from one of the lienholders about a reduction in the medical bills. Nevertheless, by this time the attorney should have disbursed at least the amount that does not need to be withheld.

Speak with the attorney -- not just a staff member -- and find out what's causing the delay. If you are dissatisfied, set a deadline in a certified letter you send to the attorney (keep a copy) that also summarizes your efforts to reach the attorney. If there's no result or satisfactory explanation, you might have to file a complaint with the State Bar. Good luck!

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Answered on 8/25/09, 9:04 am
Brian Dinday Law Offices of Brian R. Dinday

It also occurred to me that the delay is due to negotiation with lien holders, but that does not explain or excuse the failure to communicate with you and tell you why the delay is happening. I once neglected to distribute the client's money promptly and offered to pay interest on the money for the delay period. And it is of course appropriate to disburse whatever is the minimum amount that is coming to you now, even if he has to withhold a sum to cover the worst case scenario to pay off liens not yet resolved.

Negotiating liens is much to your advantage, so that in itself is not bad. The silence is bad.

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Answered on 8/25/09, 11:16 am


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