Questions to Ask Your Attorney About a Settlement
Questions to ask your attorney about a settlement offer before you sign: what you would take home after fees, costs and liens, what the release gives up, what saying no would cost, and how and when the money reaches you. Each has a short note on what a useful answer sounds like. Many of the examples come from injury claims, but the questions on the release, the counteroffer and payment fit employment and contract disputes too. The rules differ by state and country, so ask how each point works where your case is.
The questions
Each question, and why to ask it
The offer
What is the offer exactly, and how much of it would I take home after everything is paid?
Why ask it
The headline figure is rarely what reaches you. Have your attorney work it down to a net after their fee, the case costs and any liens, since that is the number to set against the alternative of carrying on.
Is this a fair offer for a case like mine, or just their opening number?
Why ask it
First offers are often made to find out whether you will take them. Your attorney has probably watched this insurer or this defense firm negotiate before, so the question is how far the figure sits from where they expect talks to end, and what that expectation rests on.
What do you think my case is worth, and how did you arrive at that?
Why ask it
You want the reasoning: results in comparable cases, the strength of the evidence, how the other side behaved, the court it would be tried in. A bare number gives you no way to judge whether this offer is close.
Does this offer cover all of my losses, or did they leave something out?
Why ask it
An offer is built from pieces: bills, lost income, future costs, a value for what you went through, a discount for their defenses. Seeing which piece was priced low or skipped shows you where a counter has the most room.
How long do I have to decide, and does the offer expire?
Why ask it
A deadline can be a real limit or a way of hurrying you, and your attorney is the one placed to tell which. Get two things straight: what happens if the date passes, and whether asking for a few more days would cost you anything.
Is my treatment far enough along to know what this injury will cost me?
Why ask it
Settling while you are still being treated means pricing an injury nobody has finished measuring. Find out what your doctors have said about recovery, and whether waiting for a clearer picture would run into a filing deadline.
Who is actually paying, and could they pay more than this if we won?
Why ask it
A verdict is only worth what can be collected. If the money comes from an insurance policy, its limit may sit close to the offer, so have your attorney say what is known about the limit and whether the defendant has anything beyond it.
What you keep
Can I see the numbers broken down in writing before I decide?
Why ask it
A written breakdown surfaces the costs people forget: expert fees, filing fees, medical records, deposition transcripts. If the firm is reluctant to put the arithmetic on paper, take that as a reason to slow down.
What is your fee on this amount, and is it taken before or after costs come out?
Why ask it
Whether the percentage applies to the gross or to what is left after costs changes your share. The agreement you signed at the start settles it, so bring it and read that page together.
Which costs has the firm advanced on my case, and is there an itemized list?
Why ask it
Costs are what the firm paid other people on your behalf, and under most fee agreements they come back out of the settlement. With an itemized list you can query anything you do not recognize, and a firm with tidy books will hand one over without fuss.
What liens or reimbursement claims have to be paid out of this?
Why ask it
Health insurers, government programs and medical providers can have a right to be repaid from your recovery, and together they can take a large share. The useful detail is whether each amount is final or still being negotiated down.
Who makes sure the liens are paid, and will I get proof?
Why ask it
A lien nobody paid can turn up as a bill long after the money is spent. Get it clear who sends each payment and when, and ask for a letter or statement from every lienholder showing nothing is owed.
Are any of my medical bills still unpaid, and does this settlement clear them?
Why ask it
Providers who were never paid may still look to you, whatever the agreement says about the case being over. Go down the list of everyone who treated you and hear, name by name, whether each is paid, written off or still owed.
Is any part of this taxable, and does the wording of the agreement change that?
Why ask it
Tax treatment depends on where you live and on what the money is for: lost pay, an injury, interest and attorney's fees can each be handled differently. How the agreement labels the payment can matter too, so raise it while the wording is still open and find out whether a tax professional should read the draft.
How would this affect benefits I receive, such as disability or health coverage?
Why ask it
A lump sum can count against the limits of a needs-based program and interrupt it. Tell your attorney about every benefit you receive before anything is signed, because whatever can be done to protect it usually has to be arranged before the money arrives.
If the net is less than I need, is your fee or the cost bill open to adjustment?
Why ask it
Some attorneys will trim a fee to close the gap between what a client needs and what the other side will pay, and some will not. It costs nothing to ask, and the conversation is far easier before you agree than after.
The release
What am I giving up if I sign: which claims, against whom, and for how long?
Why ask it
A release is often wider than the dispute, reaching related companies, insurers and claims you have not thought about yet. Go through the scope paragraph line by line together, because in most cases a signature closes all of it for good.
Does this cover future treatment or losses connected to the same injury?
Why ask it
If your condition worsens after you settle, you generally cannot come back for more. So it matters what the offer assumes about your future care, and whether any part of the money is set aside for it.
Is there a confidentiality or non-disparagement clause, and what would it stop me from saying?
Why ask it
Clauses like these can limit how you tell your own story, sometimes with a financial penalty attached. Check who you could still talk to: family, an accountant, a therapist, a future employer who asks why you left.
Does the other side admit anything, or does the agreement say they did nothing wrong?
Why ask it
Settlement agreements commonly include a line denying fault, which surprises people who wanted an acknowledgment. If an apology or a corrected record matters to you more than part of the money, say so now, because terms like that have to be bargained for.
Am I promising to cover the other side if a lienholder or insurer comes after them later?
Why ask it
Indemnity clauses can leave you responsible for a claim that surfaces after the case is closed. Have your attorney point to the paragraph and describe the worst outcome it could produce for you.
Does signing affect anyone else's claim, such as my spouse's or a co-plaintiff's?
Why ask it
A release sometimes reaches claims held by family members or by people who sued alongside you. If someone close to you was also harmed, find out whether they have to sign and whether they should take their own advice first.
Once I sign, is there any way to undo it?
Why ask it
In most situations the answer is no, and hearing it said aloud is the point of asking. Certain kinds of release come with a short window to reconsider, so check whether yours is one and how you would use it.
Saying no
If we say no, can this offer come back, or does it usually get worse?
Why ask it
Some offers stay open after a refusal and some are withdrawn the moment you counter, and your attorney will know this opponent's habits. It also matters whether this is a formal offer under a court rule, since in some places turning one down and then doing worse at trial can cost you.
If we counter, what number would you send and why?
Why ask it
A counteroffer is a message about how you see the case, so the figure needs a reason attached to it. Listen for three numbers: where they would open, where they privately expect to land, and where the two of you would stop.
Are there terms other than money we could ask for?
Why ask it
Depending on the dispute, a settlement can include a neutral reference, a repair, a corrected record or a firm payment date. These often cost the other side very little, which makes them worth raising once the number has stopped moving.
Would mediation be worth trying before we go any further?
Why ask it
A mediator is a neutral who carries proposals between the two sides, and some courts require a session before trial. You will want to know what it costs, who pays, and whether what is said in the room stays out of court where you live.
Is there a ruling or court date coming up that could change our leverage?
Why ask it
Offers tend to move around events: a decision on a motion, a key deposition, the week before trial. Knowing what is next on the calendar tells you whether waiting is likely to help you or the other side.
What are the weak points in my case that the other side is relying on?
Why ask it
Every case has them: a gap in treatment, an earlier injury, a witness who helps the other side, something you posted online. They usually explain why the offer is the size it is, and a counter that ignores them will not be taken seriously.
If we go to trial, what are my chances, and what does losing look like?
Why ask it
Have them describe the bad version out loud, not only the best one. A trial can end in less than this offer or in nothing at all, and an attorney who will not say so is not helping you weigh the choice.
How large would a verdict need to be for me to come out ahead of this offer?
Why ask it
Trial adds costs, and some fee agreements raise the percentage once a case is filed or tried. Get the break-even figure first, then ask how often your attorney has seen results that size in your court.
What would it cost to keep going, and who pays those costs if we lose?
Why ask it
Experts, depositions and trial preparation can add a large sum, which normally comes out of whatever you win. Losing is the case to pin down: some fee agreements leave the client owing those costs, and in some courts the loser can be ordered to pay part of the other side's as well.
How much longer would a trial and any appeal take?
Why ask it
Get the answer in calendar time: the likely trial date, how often dates slip in that court, and how long an appeal could hold up payment after a win. A sure amount now and a larger maybe some years off are different things, and only you know how long you can wait.
What would going to trial ask of me personally?
Why ask it
Depositions, medical examinations, days off work and cross-examination fall on you, not on the firm. A plain description lets you weigh the strain alongside the money, and some people find it changes their answer.
Getting paid
When would the money actually arrive, and what happens between signing and payment?
Why ask it
Several steps sit between your signature and your bank: the signed release goes back, the payer issues the money, liens are settled and the firm pays out from its trust account. With a rough time for each, you can avoid making commitments against money that has not arrived.
Where is the money held before it reaches me?
Why ask it
Settlement funds normally go into a client trust account, kept apart from the firm's own money, and are paid out from there. The details worth having are whose names will be on the check, how long it takes to clear, and whether you will be told the day it lands.
Will I get a final statement showing every dollar in and out?
Why ask it
The closing statement is the record of what the case paid, to whom, and what came to you. Set it beside the estimate you were shown before you agreed and raise any difference before you sign off on it.
Would payments over time make more sense for me than a lump sum?
Why ask it
Spreading the money out can suit someone with long-term care needs or a worry about spending it too fast, and it may be taxed differently from a single payment. Before agreeing, find out who would hold the money, what it costs to set up, and whether the schedule could ever be changed.
What happens if they pay late or do not pay at all?
Why ask it
Look for a payment date in the agreement and ask what you could do if it passes, since the remedy depends on the wording and on the court. This matters most when the payer is a person or a small business and no insurer stands behind them.
What happens to the court case once we settle, and is it dismissed before or after I am paid?
Why ask it
Where a lawsuit has been filed, a settlement usually ends with it being dismissed, often in a way that stops the claim being brought again. The order matters: you want to know whether the case stays open until the money has arrived or closes as soon as you sign.
Does a court or anyone else have to approve this before it is final?
Why ask it
Settlements for a child, in a class action, in a workers' compensation claim or during a bankruptcy often need a judge or an agency to sign off, which adds time. If yours is one of them, find out what the hearing involves and whether you have to attend.
Deciding
Do you think I should accept, and what would you do if this were your case?
Why ask it
By this point you have heard the options, and this asks for a recommendation. A good attorney will give one with reasons, say what would change their mind, and still make clear the choice is yours.
Can we agree now on the lowest figure I would accept?
Why ask it
Fixing a floor before the next call keeps you from deciding under pressure when a new number arrives. Be explicit too about what your attorney may say yes to without phoning you first.
Are you paid any differently if this settles now than if it goes to trial?
Why ask it
On a contingency fee, a settlement pays the attorney sooner and with less risk, which usually lines up with your interest but not always. Asked without accusation, it invites them to explain how they keep their own position out of their advice.
Would you mind if another attorney looked at this before I decide?
Why ask it
A second opinion on a permanent decision is ordinary, and a confident attorney will not take offense. Check what a reviewing lawyer would need to see and how much room the deadline leaves for it.
What do you need from me to move forward either way?
Why ask it
This closes the meeting with concrete steps: signatures, documents, an updated medical record, a call to your insurer. It also confirms you both agree on what was decided.
Weighing a settlement offer
Practical guidance for the conversation itself
Compare like with like
Bring your fee agreement to the meeting
The contract you signed at the start sets the percentage, how costs are handled and what changes if the case goes further. With it on the table, the fee questions become a page you read together instead of a point you argue from memory.
Reduce both options to a net figure and a date
Write the offer as money in your account and roughly when. Write the alternative as a range, less the extra costs, pushed back by a realistic timeline, and weighed against your attorney's honest view of the odds. Putting the two side by side on one page is often what settles the question.
Count the things that are not money
Ending the case stops depositions, medical examinations, and having your life examined in public. Some people would pay for that and should say so out loud when weighing a lower offer.
Get the lien numbers before you decide, not after
An offer that looks adequate can shrink substantially once reimbursement claims are settled. Ask for the current figures and whether they are being negotiated, because a lien that is negotiated down leaves more of the settlement for you.
Reading the document
Read the release, not the summary
The number is one line, and the rest of the document defines what you are giving up. Take it home and read the parties, the scope, and any clause about confidentiality or future claims.
Ask what happens if they do not pay
A settlement is a contract, so ask what enforcing it would involve and whether the case is dismissed before the money arrives. Installments paid over time deserve particular attention here.
Check who else is bound
Some agreements bind a spouse, an employer, or anyone claiming through you. If someone else has a related claim, find out whether signing affects it.
Find out who has to approve it
Some settlements are not final when you sign: a judge, an agency or an insurer may have to agree first. Ask what could still stop the deal after your signature and how long that step usually takes where you are.
What goes wrong
Deciding while the offer is being read to you
Most offers leave room for a day or two of thought, and your attorney can tell you whether this one does. Ask for the time as a matter of routine, because fatigue and relief are poor conditions for a permanent decision.
Treating the gross figure as your money
People commit to a car or a debt payoff based on the headline number and are then shocked by the net. Wait for the written distribution statement before promising anything to anyone.
Not asking about your own benefits
Attorneys handling the injury claim may not raise the effect on disability or health coverage unless you tell them you receive it. Volunteer that information early.
Discussing the offer publicly
Posting about the case or the amount can weaken your position and may breach a term you are about to accept. Keep it between you, your attorney, and the people who need to know.
Closing the file without proof the liens were paid
Keep the final statement and a confirmation from each lienholder with your copy of the signed agreement. If a bill surfaces years later, those pages are how you show it was dealt with.