In the example case, after the settlement, how much does the client receive?

In the example case, after the settlement, how much does the client receive?

• A. £28,000
• B. £30,000
• C. £29,000
• D. £31,000

Answer: (C)

The key idea is that the settlement figure is the total amount available to resolve the claim, but what you actually get is the net amount after costs and expenses are deducted. In this example, the settlement is £30,000, but £1,000 is taken out to cover the solicitor’s fees and disbursements. That leaves £29,000 for the client. So the best answer is the net amount the client receives after these deductions.

The key idea is that the settlement figure is the total amount available to resolve the claim, but what you actually get is the net amount after costs and expenses are deducted. In this example, the settlement is £30,000, but £1,000 is taken out to cover the solicitor’s fees and disbursements. That leaves £29,000 for the client. So the best answer is the net amount the client receives after these deductions.