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How to Process a Settlement Using the Settlement Wizard

Walk through LeanLaw’s 6-step Settlement Wizard to process a contingent fee settlement — from entering the recovery amount to generating a finalized settlement statement and QuickBooks invoice.

What is the Settlement Wizard?

The Settlement Wizard is a guided 6-step workflow on the Settlement tab of any contingent fee matter. It automates fee calculations, confirms expenses, reviews liens, and generates a client-facing Settlement Statement PDF — all without leaving LeanLaw.

Prerequisites

Before using the Settlement Wizard, ensure:

  • The matter’s billing type is set to Contingent
  • A Contingency Fee % is entered on the matter (required at matter creation)
  • Trust Accounting is enabled at the firm level and connected for this matter
  • You have billing access + matter edit permissions

The 6 Steps

Step Name What You Do
1 Enter Recovery Amount Enter deposits to trust that make up the settlement amount
2 Confirm Expenses Review and confirm unbilled expenses on the matter
3 Record Attorney Fee Create or confirm a fixed fee matching the calculated attorney fee
4 Review Third-Party Liens Verify liens pulled from the Liens tab
5 Map Prior Payments (Only applies if the client pays expenses as they go) Map prior trust payments to expenses
6 Generate Settlement Statement Produce a frozen PDF settlement statement for the client

Note: Step 5 is always visible in the wizard stepper but will appear disabled with a tooltip (“Only applies when client pays expenses as they go”) if your expense arrangement doesn’t require it. The wizard will skip from Step 4 to Step 6 automatically.

Step-by-Step Walkthrough

Step 1: Enter Recovery Amount

Enter the deposits to trust that make up the settlement amount. There may be multiple deposits — for example, if three insurance companies each contribute a portion of the recovery. The wizard totals these deposits to determine the gross settlement amount, which triggers all downstream calculations. The total recovery amount must be greater than $0.

Step 2: Confirm Expenses

Review all unbilled expenses on the matter. The wizard displays each expense with its description, date, and amount. Confirm that the list is complete and accurate before proceeding.

If expenses exceed the recovery amount and you use the net-of-expenses fee method, the wizard will block you from continuing (the fee base would be negative).

Step 3: Record Attorney Fee

The wizard calculates the attorney fee based on your configured fee method (net or gross) and expense arrangement. You’ll see:

  • A calculation breakdown showing how the fee was derived
  • The calculated attorney fee amount in a callout box
  • Any existing fixed fees on the matter

If no matching fee exists, click Create Fixed Fee to create one. If a matching fee already exists, the step auto-completes. You must have exactly one fixed fee matching the calculated amount to proceed.

Step 4: Review Third-Party Liens

The wizard pulls liens from the Liens tab on the matter. Review the list and verify amounts are correct.

Need to add or modify a lien? Navigate to the Liens tab on the matter to add, edit, or update lien records before proceeding. See How to Track and Manage Liens on a Matter for details.

Step 5: Map Prior Payments (if applicable)

If your expense arrangement is “Client pays as they go,” this step lets you identify payments on the matter from the client for expenses so they aren’t double-counted in the settlement statement.

Step 6: Generate Settlement Statement

Click Generate Settlement Statement to produce a frozen PDF. The statement shows:

  • Settlement deposits (from trust)
  • Attorney fees
  • Expenses advanced on behalf of client
  • Third-party liens/payments
  • Net proceeds to client
  • Signature lines for client and attorney

The PDF is stored on the server and can be re-downloaded anytime.

After the Wizard

Once the statement is generated, click Bill for Settlement to create a QuickBooks invoice containing the attorney fee and any unbilled expenses. The invoice syncs to QBO automatically.

To complete the settlement process, open QuickBooks Online to:

  • Issue trust checks to lienholders for each third-party lien
  • Disburse the client’s net proceeds from trust