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IN PERSONAL INJURY LAW, IS IT CUSTOMARY FOR A CLIENT TO SIGN A "SETTLEMENT AUTHORITY AGREEMENT GIVING UP ALL SETTLEMT AUTHORITY
Anonymous5 views6 answers
IN ADDITION TO A RETAINER AGREEMENT......THE LAWYER SAID A" SETTLEMENT AUTHORITY AGREEMENT" HAS TO BE SIGNED WHEREBY THE CLIENT HAS NOTHING TO DO WITH SETTLEMENT AND WILL NOT EVEN BE INFORMED OR CONSULTED WITH ON ANY PROSPECTIVE OR FINAL SETTLEMENT. THE LAWYER TAKES OVER THE ENTIRE AREA AND THE CLIENT WILL ONLY FIND OUT WHAT TOOK PLACE WHEN THE SETTLEMENT IS TOTALLY FINALIZED. THIS SEEMS OPPRESSIVE AND SEEMS TO VIOLATE A NUMBER OF THINGS..........IT SEEMS THAT IS POSSIBLY UNLAWFUL SINCE IT DEPRIVES A CLIENT OF ANY INPUT INTO THE SETTLEMENT PROCESS........THE ATTORNEY MAY SETTLE THE CASE TOO LOW OR TRY TO SETTLE TOO HIGH AND DRAG THE MATTER THREW TRIAL UNNECESSARYILY. IS THIS TYPE OF AGREEMENT NORMAL ?? IS IT EVEN LAWFUL ??
IS IT ETHICAL ?? THANK YOU VERY MUCH FOR ANYTHOUGHTS OR OPINION.
I agree and find this very unusual. Normally an attorney cannot settle a case without authority from the client, and a prudent attorney wants that authority in writing based on an actual settlement offer.
No attorney can settle a case for a client without the client's express written consent. In fact, the client's signature on the settlement agreement is required for that agreement to be enforceable. The only exception I can think of it an insurance company's right to settle a claim against its insured without the insured's consent.
Your question is unclear, however. Have you already signed this agreement? If not, you should not. If you have signed it, it is unenforceable, and you should let your attorney know that it is. If your attorney has purported to actually settle the case without your consent, you should consult with another attorney immediately.
Absolutely not! Do not sign it. The State Bar which licenses attorneys requires all attorneys to convey all settlement offers to the client and to receive the client's rejection or acceptance. The client is always the final say with regard to any settlement agreement. You want to file a complaint with the State Bar regarding the unethical agreement.
Michael Raymond DaymudeLitigation LawyerSherman Oaks, CA ·
I hate to be the fly in the ointment among the beautiful chorus. However, we do not know the circumstances surrounding this "unlawful" and "unethical" provision in the alleged retainer agreement. We also do not know other provisions which might make such a provision appropriate.
I can envision a situation where this particular client is a defendant in litigation and the attorney is representing the client pro bono – advancing all costs. I can also envision the client as a nominal plaintiff, such as in class litigation, where such a provision might be appropriate.
Without knowing all the facts and the other provisions of the retainer agreement, I am unwilling to say the summarized provision is either unlawful or unethical. I agree the provision is highly suspect.
Provisions that give an attorney the authority to deposit settlement funds in a trust account and take their costs are common and not unethical. It is unethical for an attorney to settle cases without the express authority of the client, and pre-approval of any settlement amount violates the Rules of Professional Conduct.
If you are at the outset of this representation, you should look for another attorney. This should be a big red flag for you.,
Good luck to you.
