Settlement Check Deposit Issues

Summary

In Pennsylvania, lawyers can deduct their fees from settlement funds before disbursing the remainder to clients, but they must provide a detailed statement of the amounts involved. If a bank refuses to deposit a check, it may be due to insufficient funds or lack of proper documentation. Its essential to verify the details with both the lawyer and the bank to resolve the issue.

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i just have a question
Of course, Lisa. What is your question?
my husband and I won money in an accident suit. our lawyer made us agree to have the check put into his name as he wanted to take out his fees ( non specific amount). my husband agreed as we need the money. our lawyer then put the money into a trust ( again not telling us the full amount we had won or his fee that he took out) and wrote us a check for the remainder of the money. Our bank will not deposit the funds and we really need the money. our lawyer stated he was legally bound to conduct business that way instead of having the insurance company write a check for him and his fees and a check for us. is what he is saying correct?
What state are you located in? The rules regarding attorney fees and trust accounts can vary by location.
PA
What is the name of your lawyer's firm? In Pennsylvania, it's common for lawyers to deduct their fees before disbursing settlement funds. However, they must provide a detailed statement of the amount.
i do not want to start trouble with him as we are still unable to get our money
What is the reason your bank gave for not depositing the funds?
they said there is no money backing it but the lawyer gave us a printout of the bank taking the funds out of the trust. wells fargo is our bank
What does the printout from your lawyer show exactly? In Pennsylvania, lawyers are required to provide a detailed statement of the settlement funds.
my husband has the printout. i am at work. husband says it shows wells fargo taking the money out of the trust.
What is the exact amount shown on the printout that Wells Fargo took from the trust?
i don't have that answer available to me, i am at work
Could you ask your husband to send you a picture of the printout so you can share the details with me?
sure
What is the exact amount shown on the printout that Wells Fargo took from the trust?
asking now
What is the exact amount shown on the printout that Wells Fargo took from the trust?
i am sorry, i can't get that info right now. it is taking too long. was the lawyer legally bound to do that or could the insurance company have written two checks one to him and one to us?
In Pennsylvania, it's common for lawyers to deduct their fees before disbursing settlement funds. However, they must provide a detailed statement of the amount.
it's common but they are not legally bound to do that, correct? they could have written two checks and not have been causing an issue? right?
Yes, it's not legally required. They could have issued two checks. However, it's common practice for lawyers to deduct their fees before disbursing settlement funds.
can the bank legally not release our money? i think the total amount in the trust was $*,* but it may be less, just a guess. the check was for $* i think.
What reason did the bank give for not releasing the funds?
they said there was no money backing it however the lawyer has a statement showing withdraw of the funds.
What does the bank statement from your lawyer show regarding the withdrawal of funds?
it shows the money being withdrawn. my husband went to deposit the check, it showed on his account as deposited then they took it all back and put his account in the negatives. he called and they told him that there was no money backing the check.
What did your lawyer say when you informed him about the bank's refusal to deposit the check due to lack of funds backing it?
he says it is between us and the bank
What is the name of your bank branch and its location?
wells fargo, philadelphia, pa
What is the exact address of your Wells Fargo branch in Philadelphia, PA?
* Bustleton Ave. Phila, PA *. my husband called the main number that he had
What did the bank say when your husband called the main number?
they told him that there was no money backing the check and they could not give him the money back. our lawyer said it was between us and the bank, gave us the screenshot / printout showing funds withdrawn then told my husband to go to the bank personally.
What was the bank's response when your husband went there personally?

General Information:
- Wells Fargo Bank, Bustleton Ave Branch: * Bustleton Ave, Philadelphia, PA *, Phone: *-*-*
- Lawyer's fees can be deducted before disbursing settlement funds in PA.
he is at work, he could not go yet
What is the name of the trust bank where your lawyer deposited the settlement money?
i don't have that info and husband is not answering phone at this time, he is probably driving
Could you provide the information once your husband is available? It's important to know the trust bank's details to understand the situation better.
sure
What is the name of the insurance company that issued the settlement?
State Farm
What is the exact amount of the settlement that State Farm issued?
i was not told, husband was not given an exact amount
What was the agreement between you and your lawyer regarding the fees?
husband stated that lawyer told him to agree to put the check in his name, lawyer would deduct his fees and we would get the rest but we were not given an itemized list yet.
What was the agreed percentage or amount for the lawyer's fees in your agreement?
there was none, he is someone we know so we have no contract
What was the nature of your agreement with the lawyer since there was no formal contract?
he is just supposed to pay the people who helped him with the case. we did not get a true amount. I remember my husband saying something about $* was taken out but we do not know the full amount we even started with from the insurance company.
What was the nature of the accident and the extent of the damages or injuries involved?
Thank you very much for helping me with this, i just need to know if the bank can not cash the checks. i am not looking to start a case at this time.
What is the reason your bank gave for not cashing the check?
you have that answer already
What is the date on the check issued by your lawyer?
*/*/* for $* ( i found the amount)
What is the name of the bank that issued the check?
lawyer's check- attorney trust account
What is the name of the bank that the attorney's trust account is held with?
wells fargo
What is the exact amount that was withdrawn from the trust account according to the printout your lawyer provided?

General Information:
- Wells Fargo Bank, Bustleton Ave Branch: * Bustleton Ave, Philadelphia, PA *, Phone: *-*-*
- In Pennsylvania, lawyers can deduct their fees before disbursing settlement funds but must provide a detailed statement.
$*
What is the date on the printout showing the withdrawal of $* from the trust account?
i don't have that
What is the date on the check issued by your lawyer from the trust account?
*/*/*
What is the date on the printout showing the withdrawal of $* from the trust account?
i don't have that
What is the date on the printout showing the withdrawal of $* from the trust account?