How Morgan and Morgan settlement checks work
When Morgan and Morgan settles a case on your behalf, the law firm receives the settlement money first. The firm then deducts its fee (usually a percentage of the settlement, often 33% or 40%, depending on your contract), pays any liens or medical bills that were part of the settlement agreement, and sends you the remainder as a check or direct deposit.
The timeline from settlement approval to your check arriving typically ranges from two to eight weeks. The exact timing depends on whether the other party pays when ready, whether there are liens to resolve, and how quickly the firm processes the paperwork. Some cases move faster than others.
You should receive a detailed settlement statement before the check arrives. This document shows the gross settlement amount, the firm's fee, any costs deducted, and the net amount you will receive. Review it carefully to make sure the numbers match what you agreed to.
Key Takeaways
- Morgan and Morgan deducts its fee and any liens from your settlement before sending you a check, so your payment will be less than the total settlement amount.
- Settlement checks typically arrive two to eight weeks after the case settles, depending on when the defendant pays and how many liens need to be resolved.
- You should receive an itemized settlement statement showing the gross amount, fees, deductions, and your net payment before the check is sent.
- If you do not receive your check within the timeframe the firm gave you, contact your case manager or the firm's accounting department directly.
Understanding the deductions from your settlement
The largest deduction is almost always the attorney fee. Morgan and Morgan typically charges a contingency fee, meaning they take a percentage of what you recover rather than an hourly rate. The exact percentage depends on the type of case and what stage it settled at. Cases that settle before trial often have a lower percentage than cases that go to trial.
Beyond the attorney fee, the firm may deduct case costs—things like filing fees, informed witness fees, medical record requests, and court reporter fees. These are separate from the attorney fee and come out of your settlement as well. Some firms advance these costs and recoup them from the settlement; others ask you to pay them upfront.
If you had medical treatment related to your injury, hospitals or doctors may have placed a lien on your settlement. This means they have a legal claim to part of the money to cover unpaid bills. Morgan and Morgan will pay these liens directly from the settlement before sending you your check. The firm should provide you with a list of all liens being paid.
What happens if there are liens against your settlement
A lien is a legal claim on your settlement money. It most commonly comes from health insurance companies, Medicaid, or hospitals that treated you for the injury that led to your case. They are saying: "We paid for your treatment, and we want that money back from your settlement."
Morgan and Morgan's job is to identify these liens, negotiate them down if possible, and pay them from your settlement. This process can add time to when you receive your check because the firm has to confirm the exact amount owed and sometimes get written approval from the lienholder.
You should ask your case manager for a complete list of liens before settlement. If you see a lien you do not recognize or believe is incorrect, tell the firm when ready. Some liens can be challenged or reduced, but only if you flag them early.
When your check is delayed
If you were told your check would arrive by a certain date and it has not, the delay usually falls into one of a few categories. The defendant may not have paid the settlement amount yet. A lien holder may be slow to confirm the payoff amount. Or the firm's accounting department may be processing a high volume of settlements.
Contact your case manager first. They can tell you exactly where the money is in the process and give you a new expected date. If your case manager is unavailable, ask to speak with someone in the accounting or settlement department. Do not wait more than a week past the promised date before reaching out.
In rare cases, a settlement check can be held if there is a dispute about liens, if the defendant's payment bounced, or if there is a question about the fee agreement. If this happens, the firm should notify you and explain what is holding up the payment.
Taxes and what you owe on your settlement
Settlement money is not always taxable. In personal injury cases, the portion that covers medical expenses and pain and suffering is usually not subject to federal income tax. However, any portion that covers lost wages is taxable, and interest on the settlement may be taxable as well.
Morgan and Morgan is not required to send you a tax form for your settlement, and many firms do not. This means you may need to report the taxable portion yourself when you file your taxes. Keep your settlement statement because it shows what portion of the money was for what purpose.
If you are unsure whether part of your settlement is taxable, speak with a tax professional or accountant. They can review your settlement statement and tell you what you owe. Do not assume the entire check is tax-free.
What to do with your settlement check once you receive it
Before you cash or deposit the check, make sure the amount matches your settlement statement. If there is a discrepancy, contact the firm when ready. Once you deposit the check, it becomes much harder to dispute the amount.
Consider whether you need the money when ready or whether you can set some aside. Large settlements can create tax complications if you spend it all in one year, and they can affect your may be able to access for certain benefits if you receive them. A financial advisor or accountant can help you plan how to use the money wisely.
Keep your settlement statement and any related documents for at least three to five years. You may need them for tax purposes or if questions come up later about the case.
Frequently Asked Questions
How long does it take to get a settlement check from Morgan and Morgan?
Most settlement checks arrive two to eight weeks after the case settles. The timeline depends on when the defendant pays, how many liens need to be resolved, and how quickly the firm processes the paperwork. Your case manager should give you a specific expected date.
Can Morgan and Morgan take more than 40% of my settlement?
The percentage depends on your fee agreement and the type of case. Cases that settle before trial often have a lower fee (around 33%) than cases that go to trial (often 40% or more). Review your original fee agreement to see what percentage applies to your case.
What if I disagree with the deductions on my settlement statement?
Contact your case manager or the firm's accounting department when ready. Ask for an explanation of each deduction and request documentation if you do not recognize a charge. If you believe a deduction is wrong, the firm should be able to explain it or correct it.
Do I have to pay taxes on my entire settlement check?
No. In personal injury cases, money for medical expenses and pain and suffering is usually not taxable. However, money for lost wages and interest may be taxable. Review your settlement statement to see what portion covers what, and consult a tax professional if you are unsure.
What if the defendant does not pay the settlement?
This is rare once a settlement is signed, but it can happen. If the defendant fails to pay, Morgan and Morgan can take legal action to enforce the settlement. Contact your case manager if you have not received your check within the timeframe promised and suspect non-payment is the cause.