Understanding the Timeline for Settling a Lawsuit and Receiving Payment

Introduction

When a lawyer files a lawsuit on your behalf, the timeline for receiving settlement payment can vary widely. It is crucial to understand the typical process and the factors that influence the timeline. In this article, we will explore the generally accepted practices and potential scenarios that can affect the settlement timeline.

Provisions for Timely Payment

The most efficient way to obtain payment after a lawsuit is settled is by including a timely payment clause in the settlement agreement. This clause typically requires payment within 14 or 30 days after signing the settlement agreement. By doing so, you mitigate the risk of prolonged delays in obtaining your compensation. Without such a clause, the process can potentially stretch out for much longer.

The Litigation Process

The litigation process can be complex and lacks predictability. Many variables come into play, making it difficult to estimate a specific timeline. Law firms and judges cannot always provide an exact answer, and it is highly recommended to consult with your lawyer for an accurate assessment of your particular case. My experience as a business litigation lawyer over 20 years leads me to believe that patience is often essential.

Common Pitfalls in Litigation

Missteps during the litigation process can prolong the timeline. In some cases, the case might be dismissed on the pleadings or through summary judgment. Even if it advances to trial, the outcome might not be as favorable as expected. Settlements often result from mediations or negotiations before significant legal expenses are incurred. Conversely, the worst-case scenario involves a lengthy and drawn-out process.

Extreme Examples

There are instances where lawsuits have taken over a decade to reach a confirmed judgment on appeal. The collection process can be equally daunting. Even with a valid claim, the timeline for compensation can drag on for decades. For example, one case involved a client who inherited property from his great-grandfather, with a judgment lien continuously renewed over 80 years. The original value doubled, making the settlement substantially more complex.

Conclusion

While the process and timeline for receiving settlement payment post-lawsuit can vary significantly, inclusion of a timely payment clause in the settlement agreement can greatly expedite the process. However, it is essential to recognize that the litigation process is inherently unpredictable and subject to many variables. Patience and thorough consultation with your legal representative are key to navigating this challenging landscape.