If someone else’s negligence caused your injuries in an accident, you may be entitled to compensation for your damages. If you are successful in negotiating a settlement for a personal injury in Greenville, South Carolina, you may wonder how you will receive your compensation. Here is an overview of how a personal injury settlement in Greenville, South Carolina is paid to the client.
Before discussing how a personal injury settlement is paid, it is essential to comprehend the negotiation process. Personal injury claims are frequently settled outside of court through negotiations between the injured party and the insurance provider. The parties may negotiate directly, or an attorney may represent the injured party in negotiations. The objective is to reach a settlement that adequately compensates the injured party.
Once a settlement has been reached, the injured party will receive the settlement funds. The distribution of settlement funds will depend on a number of variables, including the terms of the settlement agreement, any outstanding medical bills or liens, and whether the injured party is represented by an attorney.
If the injured party is represented by an attorney, the settlement funds are typically transferred directly to the attorney’s trust account. The attorney will then deduct their fees and any case-related expenses, including court fees and expert witness fees. Additionally, the attorney will pay any outstanding medical bills or liens on the injured party’s behalf. After these deductions are made, the remaining settlement funds will be distributed to the plaintiff.
If the injured party lacks legal representation, the settlement funds are typically sent directly to the injured party. The injured party will then be responsible for settling any subrogation claims and paying any outstanding medical bills or liens.
Important to note is that settlement funds may be subject to taxation. Generally speaking, compensation for physical injuries is not taxable. However, compensation for non-physical injuries, such as emotional distress or defamation, may be taxable. Consult a tax professional if you receive a personal injury settlement to determine whether or not the funds are taxable.
Once a settlement has been reached, there are various ways to pay the client for the settlement:
A lump-sum settlement is a single payment covering all accident-related damages. This is the most common type of settlement and typically involves negotiations between the injured party and the insurance company or party at fault. The parties will agree on a single payment to compensate the injured party for their damages, which will include medical expenses, lost wages, pain and suffering, and other damages.
In a structured settlement, the injured party receives payments over time rather than a lump sum. This type of settlement is frequently used in cases involving catastrophic injuries, such as brain or spinal cord injuries, in which the injured party will require ongoing medical care and may be unable to work. With a structured settlement, the injured party receives regular payments over a number of years, which can help pay for ongoing medical care and living expenses.
Joint and Separate Agreement
A joint and several settlement is a type of settlement in which the injured party receives compensation from multiple liable parties. For instance, if a driver under the influence of drugs caused a car accident, the victim may be able to recover damages from both the driver and the drug manufacturer. The injured party may recover damages from any or all of the responsible parties, up to the total amount of damages awarded, under a joint and several settlement.
Punitive Damages Settlement
In a punitive damages settlement, in addition to compensatory damages, the responsible party is ordered to pay punitive damages. The purpose of punitive damages is to punish the responsible party and deter others from engaging in similar behavior. Punitive damages are only awarded when the responsible party’s conduct was especially egregious or deliberate.
If you have been injured in an accident and negotiated a personal injury settlement in Greenville, South Carolina, it is essential that you understand how the settlement funds will be distributed. If you have an attorney, the settlement funds are typically deposited into the attorney’s trust account and then distributed to you after deductions. Consult with an experienced personal injury attorney if you have any questions regarding the distribution of settlement funds. At the David W. Martin Law Group, we offer free consultations with our experienced Greenville, South Carolina personal injury attorneys.