Legal Question in Civil Rights Law in Washington

sexual harrasment and suffering pay out

This is a 2 part question.

First, I was awarded a judgment of $250,000.00 for sexual harassment and suffering. I signed an agreement with the attorney to pay 40% of winning. I asked that the hospital pay attorney fees. Yet, the attorney added that cost in with the $250,000. Is that fair? The state agreed to pay reasonable attorney fees of 25%. My question is if the hospital or state paid 25% of the attorney fees then wouldn�t I only have to pay the other 15%? The attorney put them both together and then subtracted the 40%. I think he is ripping me off. Out of the $250,000 I then would only receive 165,000.00

Second question is if this money is taxable?


Asked on 1/19/09, 9:41 pm

1 Answer from Attorneys
Amir John Showrai The Pacific Law Firm, PLLC

Re: sexual harrasment and suffering pay out

To answer your first question, since it is so specific, I or anyone else would need to see exactly how your attorney-client fee agreement is written, along with a copy of the settlement detailing the hospital's agreement to pay a portion of your fees. Once I or anyone sees that, answering your question should be fairly straight forward.

As to the second question, it depends. If the award is for lost income, then it is taxable. If it is for pain and suffering, then no, it's not taxable. Hopefully, there is a breakdown of what is allocated to lost income and what is allocated to pain and suffering. Ultimately, you will want a CPA or tax attorney to review the settlement to give you that advice. I am only speaking in generalities here.

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Answered on 1/19/09, 11:00 pm


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