Payment of Settlement in Civil Case

lilmissprincess

Just wondering if anyone who has been in situation where case is settled before getting to court knows how long it takes for settlement to be cleared and to get the actual cheque? Solicitor mentioned something about 10 days but costs being up to 3 months, and yes, I will check with her, but wondering if anyone else had experience of this - is it a case of you get whatever amount and then you've to refund costs, or what's the story there?

Thanks

NUTLEY BOY

lilmissprincess wrote: »

Just wondering if anyone who has been in situation where case is settled before getting to court knows how long it takes for settlement to be cleared and to get the actual cheque? Solicitor mentioned something about 10 days but costs being up to 3 months, and yes, I will check with her, but wondering if anyone else had experience of this - is it a case of you get whatever amount and then you've to refund costs, or what's the story there?

Thanks

Generally, it takes as long as it takes the insurance company to generate the cheque which will be sent to the solicitor.

Negotiation of costs can take time but that should be of no relevance to you as the amount of the damages is yours. This assumes that settlement was made on the usual basis of payment of (i) agreed damages and (ii)costs.

Sometimes a client may have additional costs to pay a solicitor which are known as "solicitor and client fees". Solicitor and client fees are not to be confused with the shady practice of a few solicitors who charge the same costs again to the client having already recovered in full. If you have worries about that later on ask for a copy of the bill of costs agreed with the insurers.

P.S. I have known of some solicitors to have held the client's damages cheque to ransom until costs have been settled. The logic is that if there are solicitor and client fees due they will seek to get that first. Otherwise, if they release the damages cheque to the client they may have problems getting the solicitor and client monies from the client ! I would regard such a practice as disreputable but that is only a view :rolleyes:

UrbanFox

To expand the previous view for clarity.

Legal costs in a matter like this come under two headings ;

1. Party and party costs.
2. Solicitor and client costs.

Party and party costs are those necessarily and directly incurred in presenting the claimant's case.

Solicitor and client costs would cover those items not recovered or allowed (in whole or in part) on a party and party basis.

In other words, costs incurred in making the claim that are not recovered from the insurers spill over to the client.