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The fact that you were issued a 1099 does NOT determine whether you have to pay income taxes on the settlement. You stated two things in your post that have me a little confused. Perhaps you can help me a little:
1) You state the settlement was for "Wrongful Termination" and
2) You state that it was for a "Personal injury."
Compensation for physical and related psychological injuries (that is psychological trauma connected to the physical injury) are not taxable, even if you received a 1099. You will need to exclude that amount from income and demonstrate it was compensation for personal injury.
Compensation for lost wages, back pay, future pay are economic damages and are taxable. If the underlying cause of action was contractual in nature you must pay taxes.
See this article for more detail:
As for suing your attorney, in regard to fee disputes, Florida has a Fee Arbitration program that is faster, simpler, and less expensive (in fact the client often pays nothing for the arbitration process). Participation by the attorney is mandatory and binding. So you may wish to consider that process. Here is information on it:
If you wish to pursue damages for negligence in regard to the attorney's failure to advise you regarding the tax consequences, or negligently advising you, those are allegations to support a lawsuit. Of course there are the expenses in time, energy and resources to consider. The litigation process is more complicated, expensive, and time consuming than is the arbitration process.
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