How the Structured Settlement Process Works in California

Kyle Valero

Personal injury cases stem from accidents that occur due to someone’s negligence or malicious actions. These cases can be settled in two ways: through settlement negotiations or by getting a judge or jury involved – through trial. This article considers the structured settlement approach and how the process works in California.

Therefore, if you have suffered a personal injury in California, here is everything to know about settling with the at-fault party. Meanwhile, consulting a competent and experienced personal injury attorney will make the process go more smoothly.

The Structured Settlement Approach to Resolving Personal Injury Claims

When an individual has suffered a personal injury caused by another individual’s actions or inactions, personal injury claims ensue. However, the case does not go straight to court; other dispute resolution methods are applied first. The first thing is to settle negotiations, which can go in different ways, including structured settlement.

The structured settlement agreement is one held between two parties where, rather than a lump sum upfront, the defendant pays the injured party overtime. Usually, terms and conditions will be set out in detail, showing periodic payments that continue until a particular date or event.

How the Structured Settlement Process Works in California

The structured settlement process follows a particular pattern, starting with drawing up an agreement that both parties will sign. Below is a step-by-step guide on how the structured settlement process in California works:

  • Step 1: Reaching an Agreement

The first step is to reach an agreement regarding liability, damages, competent evidence discovery, and other trial preparation matters. After that, one or both parties may propose structure-based solutions, which could involve deferred annuity plans. The alternative to that option is the traditional cash-out option through installment contracts.

Meanwhile, parties may decide not to involve court trials and just resolve the matter privately between them. Or, they may involve a judge and get their approval on relevant documents if they believe the agreement is fair and equitable.

  • Step 2: Deciding the Amount

The next step is to decide how much will be paid annually; this determines whether or not to accept the agreement. You could get a financial planner to help calculate this amount, as they are experts in tax concepts. Moreover, they can use their expertise with taxation rules to assist insurance companies and claimants in optimizing payment structures.

Meanwhile, due to the technical issues involved in structured settlement, you may use legal funding services as intermediaries. The process typically requires input from professionals, and that input helps all the parties involved to make informed decisions.

  • Step 3: Annuity Contracts, Depositing Funds, and Selecting Beneficiaries

The final step involves the creation of annuity contracts, deposition of funds, and selection of beneficiaries. How these are carried out will depend on the structure the parties involved in these programs agree on.

Meanwhile, parties should review the payment schedule and other agreements regularly to ensure it is accurate. You may even modify the schedule, but not without the prior authorization of a court in California.

Conclusion: Why Structured Settlement is a Great Option

“Structured settlement is a great option for three major reasons: steady income, tax benefits, and reduced risk,” says Attorney Kyle Valero of Valero Law Group Injury Lawyers.  First, structured settlement features regular monthly payments, which provide stability and certainty, maintaining financial security, among other things.

Additionally, structured settlements are tax-free under federal law, provided they meet specific criteria in the Internal Revenue Code. Furthermore, there is no risk associated with market fluctuations in the monthly income from structured settlements. In all, if you have suffered debilitating injuries that require long-term treatments, structured settlement makes planning so much easier.

Source:

Valero Law Group Injury Lawyers, California


Million-Dollar Bonuses And How Big Law Is Changing Tactics In The Face Of Big Paying Boutiques

big law firm bonus payment tactics

Ben Thomson, Senior LawFuel editor

In a twist that’s got the legal world buzzing, BigLaw’s bonus season is serving up some serious drama but the twist in the bonus tale is the boutique law firms that are flashing cash like it’s going out of style, while a few heavyweight players are giving the cold shoulder to those oh-so-expected special bonuses.

Boutique firms are stealing the spotlight, showering their associates with bonuses that would make even the most jaded lawyer’s jaw drop. Susman Godfrey, #1 in our list of leading boutique law firms, is leading the pack, dishing out median bonuses that range from a cool $110,000 to double that figure.

The boutique firms are strutting their stuff, flashing cash like it’s going out of style. They’re the new kids on the block, turning heads and making the old guard sweat.

Not to be outdone, Boies Schiller Flexner, who recently elevated five to the partnership, is rumored to be handing out million-dollar bonuses to a small clutch of “multiple associates,” with several others pocketing $300,000 or more. Selendy Gay and Wilkinson Stekloff are also joining the bonus bonanza, offering combined payouts that could make a BigLaw partner blush.

BigLaw’s Bonus Bluff

But back in BigLaw not everyone’s feeling so generous. Perkins Coie and Hogan Lovells have decided to buck the trend, saying “thanks, but no thanks” to those routine special bonuses that range from $6,000 to $25,000, according to a report from Bloomberg Law.

It’s like they’re playing a different game altogether. Many firms are offering higher bonuses for exceptional performance or high billable hours instead of across-the-board special bonuses, while others are sitting on their hands to assess their position financially and how the bonus lay-of-the-land looks.

The bonus payouts are being tailored to meet the market, the law firm situation and other protocols laid down by the law firms.

Hogan Lovells, though, is throwing a bone to its hardest workers, promising extra cash for those who clock in more hours than a barista during finals week. Other firms like Covington & Burling and Sidley Austin are also making associates sweat for their extra dough, tying bonuses to billable hours like it’s some kind of legal Hunger Games.

So why the split personality in bonus land? Boutiques, with their lean and mean operations, can afford to splash the cash without breaking a sweat.

BigLaw, on the other hand, is feeling the pinch after the talent wars of 2021 and subsequent layoffs. Their strategies are changing on the bonus season.

Katherine Kinney

As Katherine Loanzon (pictured) from Kinney Recruiting puts it, firms are taking a hard look at their wallets and deciding what they can actually afford. It’s like watching a group of friends decide where to eat dinner, except instead of choosing between pizza and sushi, they’re deciding whether to hand out six-figure bonuses.

In the glittering world of BigLaw, where money once flowed like champagne at a Gatsby party, a curious shift is underway as the routine special bonuses, once as predictable as a lawyer’s billable hours, are disappearing.

The changes is due to a cocktail of economic sobriety and strategic maneuvering, partly due to the money paid out by the elite boutiques.

Firms are playing a long game, realizing they don’t need to jump every time a competitor throws a bonus bone. They’re crafting bonus structures as unique as bespoke suits, tailoring them to fit their own strategies like a glove. They are often delaying their bonus payment decisions for a variety of reasons, both financial and strategic, rather than jumping into the bonus payment pool in lockstep with others.

And let’s not forget the ghosts of bonuses past. Some firms that once danced the bonus tango with abandon found themselves with two left feet when the music stopped. Now, they’re sitting this one out, nursing their financial hangovers and vowing never again.

It is to the partners that is seeing the real money flow these days. The new arms race isn’t about associates; it’s about those rainmaking partners who can make it pour profits.

Read More –

Law Firm Partner Salary Update: What Are They Earning?

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