Legal Question in Employment Law in Pennsylvania

Re: Attorney's fees

You asked about an attorney's fee.

No intelligent attorney will let a client have a check that includes his/her fee. If the check is made out to the client the attorney will have the client endorse the check and then the attorney will negotiate that check through his/her client trust account. When the check clears (up to two weeks) then the attorney will cut a check or wire funds to the client's bank account.

If the check is made out to both then the attorney can usually negotiate the check without the client's signature through his/her trust account.

This does two things, first it makes certain the attorney gets paid. Some clients are all to appreciative of an attorney's work but won't part with a penny when they get money in their hands. More importantly it lets the attorney properly account for the funds.

At the end of the year the attorney must account for income and expenses as must any other business. Many types or portions of settlements are taxable.

If the client takes the whole check then the client would be responsible for takes on the entire amount (including the attorney's fee). Plus the the client would not be able to separate a taxable portion from an untaxable portion. The attorney can do this simply by issuing two checks or two deposit advices.

Regards,

Roger