Lawsuits can cover an array of matters. This may involve civil actions between private parties or those brought forward against public bodies (like states) such as lawsuits based on public records requests.
Settlement or award money typically arrives as one lump sum from the at-fault party or insurer to the injured party; however, its distribution can differ.
Settlements
Sometimes parties involved in a lawsuit agree on an out-of-court settlement instead of going to trial, especially class action suits in which many plaintiffs share similar complaints and wish to have them resolved quickly and efficiently.
Settlement funds may arrive as either an upfront lump sum payment, or be distributed over time in payments structured over time. Lump sum payments are generally sent through wire transfer for instantaneous delivery; payments structured over time usually arrive as paper checks that take several days or even weeks to clear (depending on their size).
As soon as settlement funds arrive, your attorney uses them first to pay any existing liens on your claim, such as medical providers who provided treatment after an accident and agreed not to collect their fees until your settlement arrived or debts such as child support or taxes that are owed. Any remaining funds are then distributed directly to you.
Jury Verdicts
A verdict is the decision or award issued by a judge or jury regarding an ongoing case, usually finding one party responsible and awarding damages (both non-monetary compensation as well as punitive) to their victims.
Large verdicts may seem excessive at first, but they’re usually justified given the evidence presented. It is important to keep in mind that such amounts represent what’s necessary to restore someone to wholeness after suffering injury.
Lawyers representing both plaintiffs and defendants must also pay fees from settlement or verdict awards to offset legal fees, while courts and states may levy taxes to fund various public services; attorney generals or legislative leaders usually have some say over how this money is dispersed among children, families, seniors and other programs.
Class Actions
Court cases often use class actions to consolidate multiple individual lawsuits into one collective case, enabling “little Davids” to fight off large “Goliaths”. Benefits associated with class action litigation include increased efficiency and economies of scale.
These benefits can ensure that any settlement awarded to claimants is distributed equitably among them. When faced with multiple identical claims from different claimants, defendant corporations may be more willing to settle than risk facing an inconsistent verdict in each instance of litigation.
Once a judge approves a class action settlement amount, attorneys for both plaintiffs and any parties involved typically receive their respective portion before any remaining funds are distributed among claimants – with lead plaintiffs generally receiving more due to handling the bulk of work for their case; this, however, remains subject to court approval.