1/2 - I am amazed by the misreporting and stupidity surrounding how legal settlements work. When monies are rcvd, an atty on a contingency fee basis is allowed to deduct and keep the monies for his fee (sometimes 50%), as well as all monies and costs previously advanced...
2/2 - for the client’s benefit (sometimes millions prior to settlement). The atty is also allowed to deduct all other monies owed the atty for other legal work. There is nothing improper about any of this and it happens all the time throughout the US. It is common practice.