Settlement Disbursement Statement Check and Plain-English Client Letter
Checks the arithmetic of a settlement closing statement against the fee agreement terms, costs and liens you supply, flags anything that does not reconcile, then writes a plain-English letter explaining each line to the client.
The Prompt
Variables (7)
| Variable | Description | Example |
|---|---|---|
| {{client_name}} | Client Name | Maria Gonzalez |
| {{gross_settlement_amount}} | Gross Settlement Amount (USD) | 75000 |
| {{fee_agreement_terms}} | Fee Agreement Terms | Paragraph 3 of the signed fee agreement: the percentage or sliding scale, how costs are treated, and any clause on liens or reductions. |
| {{fee_calculation_basis}} | Fee Calculation Basis | On the gross recovery, before costs are deducted |
| {{itemized_costs}} | Itemized Case Costs | 04/02/2026 medical records, Valley Orthopedics, $86.50; 05/19/2026 police report, $15.00; 07/08/2026 expert review, Dr. Alan Pierce, $1,200.00. |
| {{liens_amounts}} | Liens and Reimbursement Amounts | Summit Health Plan, final reduced amount $9,480.00 (letter dated 09/22/2026); Valley Orthopedics balance $2,150.00; med-pay reimbursement to Lakeshore Casualty $1,000.00. |
| {{draft_closing_statement}} | Draft Closing Statement | The draft settlement statement as prepared by the firm, line by line, with its totals and the net to client. |
Expected Output
Part 1, attorney-only notes (one-line reconciliation status, arithmetic check of fee, costs, liens and net to client with each calculation shown, reconciliation table comparing the draft statement with the recomputed figures, conflicts between sources, unsupported statements declined, declined requests, Missing information); Part 2, a clean plain-English client letter explaining each line; and a closing Verification list.
Usage Notes
Use when the settlement figure, costs and lien amounts are known and a closing statement is ready to go to the client. Paste the fee clause from the signed agreement, the cost ledger, each lien amount with its payee, and the draft statement. Part 1 is for the file; only Part 2 is meant for the client, and any line reading "TO BE COMPLETED BY ATTORNEY" must be filled in before it goes out. Failure mode to watch for: a fee computed on the wrong basis (gross versus net of costs), a lien amount that is still an estimate presented as final, or a time limit taken from a staff note and passed to the client as fact; check the fee line against the signed agreement and your jurisdiction's closing statement requirements yourself. Read the document part line by line before it leaves the office: in testing, a small model sometimes left an internal remark, a comparison with the file or an unresolved point inside the document despite the instructions. Not legal advice. The attorney remains responsible for verifying every fact, figure and authority before use.
Originally featured in: AI for Personal Injury Lawyers: Prompts for Demand Letters, Medical Summaries & Depositions
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* These prompts are drafting and analysis aids for licensed attorneys. They are not legal advice and do not replace professional judgment. AI output can contain errors, including invented citations and incorrect deadlines: verify every fact, figure, authority and deadline against primary sources before relying on it. Rules vary by jurisdiction, and you remain responsible for the final work product.