People dealing with legal issues often hire lawyers to assist them. An attorney can manage the process of negotiating on behalf of a client. They can educate their clients about the law and the legal system. They can handle all necessary paperwork.
Lawyers typically have a fiduciary duty to act in the best interests of their clients. Occasionally, lawyers make mistakes in the practice of law that can cause real harm to the people who hire them. For example, they may rush to resolve a legal matter without getting adequate input from a client.
Settlements are possible in a variety of different scenarios. Occasionally, lawyers decide to settle because they think it might be in the best interests of their client. Can a lawyer settle a legal matter without a client’s permission?
Clients have the right to review settlement offers
Although an attorney has the authority to act as an agent on behalf of a client, that does not give them total control over the resolution of a legal dispute or compensation claim. Generally speaking, lawyers have an obligation under current professional standards to notify their clients about any settlement offers they receive.
Lawyers have to advise clients of settlement offers that they believe are inappropriate. They also have to give the client an opportunity to respond even if the lawyer believes the settlement offers the best possible outcome. Unless the client has already pre-approved settlement in specific scenarios, an attorney generally cannot accept a settlement on behalf of a client without informing them of it and obtaining their consent.
What if a lawyer settled without permission?
People who learn too late that their lawyer accepted a settlement on their behalf may feel betrayed and frustrated. They may feel as though their lawyer denied them an opportunity for justice or better financial compensation.
Clients who disapprove of a lawyer’s actions can sometimes file a lawsuit against their former attorneys. Legal malpractice lawsuits can provide clients with compensation for the incompetence or misconduct of a lawyer. A successful legal malpractice lawsuit can also create consequences for a lawyer. They may have to change the way that they practice law based on the outcome of a legal malpractice lawsuit.
Scenarios in which clients end up forced to settle against their wishes or best interests can potentially constitute legal malpractice. Reviewing communications with an attorney and the terms of a settlement may help frustrated clients demand accountability for what they perceive as legal malpractice.