CAN MY LAWYER PRESSURE ME TO SETTLE MY CASE?

*** This information is provided subject to Litteral LLP’s Terms & Notices and is presented solely for informational purposes.  Because this information is general in nature, it should not be relied upon or treated as legal advice or a substitute for legal advice.  This information is presented in accordance with Litteral LLP’s aim of enhancing access to the law.  Litteral LLP expresses no opinion as to the merits of a particular case or a particular set of facts.***

In recent years, legal scholars have devoted considerable attention to the potentially troubling dynamics at play between attorneys and clients in the decision of whether to settle a case.  Specifically, a client may be advised by their attorney to settle their claims either at an earlier stage of the case than the client desires or at a lesser value than the client believes the case is worth.  In these or similar circumstances, clients may be unsure of their rights. 

As a starting point, clients may consider reviewing California’s Rules of Professional Conduct.  Rule 1.4.1(a) requires an attorney to “promptly communicate” all “amounts, terms, and conditions of any written offer of settlement made to the client[.]”  And, in the class action context, the “client” includes “all the named representatives of the class.”  Under that standard, the State Bar of California has determined that it is improper for an attorney to “wait[] until [a] settlement agreement [is] ready for signature” before informing the client of the existence of the settlement offer.  Matter of Isola, 2022 WL 18340777, at *17 (Cal. Bar Ct. May 25, 2022).

Despite that requirement, a client may be faced with a situation where an attorney fails to communicate the settlement offer and—pointing to some provision in their retainer—proceeds to accept the settlement.  Fortunately, for clients in California, courts have found such practices impermissible.  For example, in Amjadi v. Brown, 68 Cal. App. 5th 383, 398 (2021), the court found that “an attorney may not settle a client’s case over the client’s objection and any provision of a retainer purporting to give an attorney such authority violated the Rules of Professional Conduct and is void.”

Importantly, because the client alone “has the authority to define the objectives of representation,” solely the client “may decide whether to make or accept an offer of settlement.”  Nehad v. Mukasey, 535 F.3d 962, 970 (9th Cir. 2008).  Accordingly, clients should feel confident in informing their attorney of their objectives and refusing to accept a settlement if they feel that the proposed settlement fails to accomplish their legitimate objectives. 

The right to have your legitimate objectives respected by your attorney, including whether or not to settle your matter, is one of many client rights.  In the event a client feels that their attorney is burdening their decision-making, they have the right to withdraw from the attorney-client relationship.  The right to withdrawal may be subject to court approval in some matters and the attorney may have a claim for the value of services rendered to the point of discharge. Any individual considering legal recourse should consult a qualified attorney who can evaluate the applicable laws, relevant legal developments, and specific facts of a given case.

*** This information is provided subject to the disclaimer above and Litteral LLP’s Terms & Notices.***  

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