Jack Parsons finally settled a large medical malpractice case on the morning that trial was scheduled to begin. The defendant's insurance company agreed that within one week, they would send Jack a check for the entire settlement in the amount of $500,000 . Jack had agreed to represent the client on a contingency basis, in which he would take 33 percent of any settlement as her free. The trial

Question

team had also incurred substantial costs in preparing the case for trial. Under the contract, the client agreed to pay these costs. Outline the procedure that Jack must follow in handling the settlement amount once the check is received from the insurance company, based on the Model Rules of Professional Conduct.

What will be an ideal response?

Answer 1

The client should be notified as soon as the check is received. The entire amount must be deposited in a separate escrow account designated for client funds. Jack's firm may then disburse the fees and costs out of this account. The balance of settlement amount is then paid to the client. The client should also be provided with a statement showing exactly what fees and expenses were paid out of the settlement amount.