In this blog we explore efficient post-settlement strategies for multi-party cases, featuring insights from Rocco Strangio, associate attorney at Milestone, an innovator in post-settlement solutions for mass tort and multi-party litigation.

Successfully managing multi-party case settlements presents unique challenges for catastrophic injury law firms accustomed to single-event cases. The increased complexity and administrative burden associated with multiple claimants can be substantial and has the potential to place unfamiliar strain on your firm. Strategic planning and specialized resources are essential to optimizing outcomes for both your firm and your clients.

Read on to find three tried-and-true solutions to help set yourself up for success when it comes to taking on more multi-party cases.

3 Solutions for Successfully Managing Multi-party Case Settlements

1. Engage a settlement administration partner.

First and foremost, the most important thing you can do is to engage with a settlement administration partner and engage with them early to ensure optimal efficiency. Settlement administrators live and breathe the post-settlement stage, meaning they are set up to handle administration for cases of all sizes. Choose one that emphasizes efficiency-boosting technology solutions, and this option becomes even more attractive.

A good settlement administrator relieves your firm of the administrative burden of the post-settlement stage, handling everything from release administration all the way through to payment in hand for your clients. You’re able to leverage their expertise, while lowering the risk of error for your firm.

And remember those tech solutions mentioned? A good settlement administrator can help all of this go off without a hitch for you, in a matter of days or weeks, all while giving you access to real-time payment data and keeping your clients informed.

2. Settle into a multi-party QSF.

A multi-party qualified settlement fund (QSF) is the foundation for success when it comes to managing a multi-party case settlement. A multi-party QSF is a trust (made possible by IRC Section 468B) that is used to settle high-dollar verdicts in cases that involve more than one plaintiff. This allows for the temporary bypassing of constructive receipt of funds until distributions are made, meaning that attorneys and claimants do not have to pay taxes on the funds until they are distributed.

This solution affords claimants time and space to plan and preserve their government benefits if need be. It also enables attorneys to defer their fees, should they choose to do so. Moreover, by settling into a QSF, attorneys can potentially better comply with their state’s rules of professional conduct regarding IOLTAs (i.e., Section 1.15). These rules often stipulate that client funds must be deposited into an interest-bearing account – like a QSF – that maximizes returns for clients.

Having a multi-party QSF in place is key, which is why it is so important to engage your settlement administrator earlier than later. A QSF must be established before settlement occurs, and dedicated administrators are experts when it comes to such timelines and nuances.

3. Don’t get stuck in the muck.

All of this comes together to give both you and your clients an optimized post-settlement experience. As an attorney, your core competencies revolve around law, so the administrative tasks of post-settlement need not be in your exclusive purview. Engage a settlement administrator, settle into a multi-party QSF, and get back to doing more of what you do best—achieving amazing results for your clients.

By implementing these three strategies, catastrophic injury law firms can effectively navigate the complexities of multi-party case settlements. These approaches streamline the post-settlement process, minimize administrative burdens, and optimize outcomes for both your firm and your clients.