Settlement Distribution Statement
Produces the final financial accounting of PI settlement proceeds — gross recovery through all deductions to net client payout — for client delivery, trust accounting compliance, and regulatory review.
Prerequisites
Gather before drafting:
- Executed settlement agreement (gross amount, allocation terms)
- Fee agreement (contingency %, sliding scales, caps, cost-advancement terms)
- Litigation cost ledger (date, vendor, description, amount per item)
- Lien resolution summary (original claim, negotiated amount, payment instructions per lienholder)
- Trust account confirmation (funds cleared and available)
- Client payment instructions (delivery method, split directions)
Distribution Table Template
SETTLEMENT DISTRIBUTION STATEMENT
Matter: [Client Name] v. [Defendant(s)]
Matter No.: [#]
Date of Settlement: [Date]
Date of Statement: [Date]
ITEM AMOUNT
─────────────────────────────────────────────────────
Gross Settlement Proceeds $__________
DEDUCTIONS:
Attorney's Fees ([__]% per Fee Agreement
dated [Date], ¶[__]) ($__________)
Litigation Costs (see Exhibit A) ($__________)
Lien Satisfactions:
[Provider 1] — [type] ($__________)
[Provider 2] — [type] ($__________)
Subtotal Liens ($__________)
Other Deductions:
[Co-counsel referral / case funding] ($__________)
TOTAL DEDUCTIONS ($__________)
───────────
NET TO CLIENT $__________
═════════════════════════════════════════════════════
Exhibit A — Litigation Costs
| Date |
Vendor/Payee |
Description |
Amount |
|
|
|
|
|
|
Total Costs |
$____ |
Output Format
Formal letter on firm letterhead addressed to client (full legal name, current address).
| Section |
Content |
| Opening |
Acknowledge resolution, transition to financial accounting (2-3 sentences) |
| Distribution Table |
Completed template above |
| Payment Details |
Check number/wire confirmation, delivery method, expected date |
| Attachments |
Cost breakdown, lien satisfaction letters, fee agreement excerpts |
Workflow
- [ ] Extract gross amount, fee terms, all costs, and all liens from source documents
- [ ] Calculate attorney fees per fee agreement (verify %, base, caps, sliding scales)
- [ ] Sum all deductions; compute net to client
- [ ] Reconcile: Gross = Total Deductions + Net to Client (must balance to the penny)
- [ ] Draft statement using template
- [ ] Attach cost breakdown, lien satisfaction letters, fee agreement excerpts
- [ ] Include payment delivery details (check #, wire confirmation, dates)
- [ ] Verify no bracketed placeholders remain in final output
Critical Checks
- Reconciliation is mandatory — flag any discrepancy before finalizing; every dollar must be accounted for
- Lien completeness — cross-check every lien from resolution summary appears in statement; a missing lien exposes client to future liability
- Fee agreement fidelity — apply the exact contracted percentage/rate; honor all caps, sliding scales, and special provisions
- Plain language — avoid jargon the client won't understand; add brief context for each line item
- Ethical compliance — satisfy Rules of Professional Conduct re: client property (Model Rule 1.15), trust accounting, and fee transparency
- Tax awareness — flag structured or allocated amounts the client should discuss with a tax professional; do not provide tax advice
- Confidentiality — if delivered electronically, note document should be encrypted with password communicated separately
- Retention — flag for archival per firm policy for applicable statute of limitations plus professional responsibility retention period
1---2name: settlement-distribution3description: Drafts settlement distribution statements for personal injury cases with itemized accounting of gross proceeds, attorney fees, litigation costs, lien satisfactions, and net client payout. Enforces trust accounting compliance and reconciliation checks per Rules of Professional Conduct. Use when closing a PI matter, preparing disbursement sheets, or generating final case accounting.4---5
6# Settlement Distribution Statement
7
8Produces the final financial accounting of PI settlement proceeds — gross recovery through all deductions to net client payout — for client delivery, trust accounting compliance, and regulatory review.
9
10## Prerequisites
11
12Gather before drafting:
13
14- Executed settlement agreement (gross amount, allocation terms)
15- Fee agreement (contingency %, sliding scales, caps, cost-advancement terms)
16- Litigation cost ledger (date, vendor, description, amount per item)
17- Lien resolution summary (original claim, negotiated amount, payment instructions per lienholder)
18- Trust account confirmation (funds cleared and available)
19- Client payment instructions (delivery method, split directions)
20
21## Distribution Table Template
22
23```
24SETTLEMENT DISTRIBUTION STATEMENT
25Matter: [Client Name] v. [Defendant(s)]
26Matter No.: [#]
27Date of Settlement: [Date]
28Date of Statement: [Date]
29
30ITEM AMOUNT
31─────────────────────────────────────────────────────
32Gross Settlement Proceeds $__________
33
34DEDUCTIONS:
35 Attorney's Fees ([__]% per Fee Agreement
36 dated [Date], ¶[__]) ($__________)
37 Litigation Costs (see Exhibit A) ($__________)
38
39 Lien Satisfactions:
40 [Provider 1] — [type] ($__________)
41 [Provider 2] — [type] ($__________)
42 Subtotal Liens ($__________)
43
44 Other Deductions:
45 [Co-counsel referral / case funding] ($__________)
46
47TOTAL DEDUCTIONS ($__________)
48 ───────────
49NET TO CLIENT $__________
50═════════════════════════════════════════════════════
51```
52
53### Exhibit A — Litigation Costs
54
55| Date | Vendor/Payee | Description | Amount |
56|------|-------------|-------------|--------|
57| | | | |
58| | | **Total Costs** | **$____** |
59
60## Output Format
61
62Formal letter on firm letterhead addressed to client (full legal name, current address).
63
64| Section | Content |
65|---|---|
66| **Opening** | Acknowledge resolution, transition to financial accounting (2-3 sentences) |
67| **Distribution Table** | Completed template above |
68| **Payment Details** | Check number/wire confirmation, delivery method, expected date |
69| **Attachments** | Cost breakdown, lien satisfaction letters, fee agreement excerpts |
70
71## Workflow
72
73```
74- [ ] Extract gross amount, fee terms, all costs, and all liens from source documents
75- [ ] Calculate attorney fees per fee agreement (verify %, base, caps, sliding scales)
76- [ ] Sum all deductions; compute net to client
77- [ ] Reconcile: Gross = Total Deductions + Net to Client (must balance to the penny)
78- [ ] Draft statement using template
79- [ ] Attach cost breakdown, lien satisfaction letters, fee agreement excerpts
80- [ ] Include payment delivery details (check #, wire confirmation, dates)
81- [ ] Verify no bracketed placeholders remain in final output
82```
83
84## Critical Checks
85
86- **Reconciliation is mandatory** — flag any discrepancy before finalizing; every dollar must be accounted for
87- **Lien completeness** — cross-check every lien from resolution summary appears in statement; a missing lien exposes client to future liability
88- **Fee agreement fidelity** — apply the exact contracted percentage/rate; honor all caps, sliding scales, and special provisions
89- **Plain language** — avoid jargon the client won't understand; add brief context for each line item
90- **Ethical compliance** — satisfy Rules of Professional Conduct re: client property (Model Rule 1.15), trust accounting, and fee transparency
91- **Tax awareness** — flag structured or allocated amounts the client should discuss with a tax professional; do not provide tax advice
92- **Confidentiality** — if delivered electronically, note document should be encrypted with password communicated separately
93- **Retention** — flag for archival per firm policy for applicable statute of limitations plus professional responsibility retention period
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