Lawyer Settles Client's Injury Case Without Consent: Legal Options

A personal injury client is facing a serious legal dispute after his attorney settled his case without obtaining his consent — a potential violation of professional conduct rules that govern lawyers across the United States. The former attorney is now holding the settlement funds and claiming entitlement to attorney's fees, deepening a conflict that began when the client-lawyer relationship broke down.

Unauthorized settlements represent one of the most significant breaches an attorney can commit. Legal ethics rules, including those outlined in the American Bar Association's Model Rules of Professional Conduct, require that lawyers obtain explicit client approval before accepting any settlement offer. A lawyer who acts without that approval may be exposing themselves to disciplinary action, a malpractice lawsuit, or both.

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The client in this situation has several potential avenues for recourse. Filing a complaint with the state bar association is typically the first step, as bar disciplinary boards have the authority to investigate attorney misconduct and impose sanctions ranging from reprimand to disbarment. Separately, the client may pursue a legal malpractice claim to recover damages caused by the unauthorized action.

The question of attorney's fees adds another layer of complexity. Even if a lawyer performs work on a case, courts have found that attorneys who engage in serious misconduct — including settling without consent — may forfeit their right to compensation under the legal doctrine of forfeiture of fees. The client could petition the court overseeing the settlement to intervene and compel release of the funds.

Situations like this underscore why clients should maintain clear, written communication with their attorneys throughout any legal proceeding and request copies of all correspondence related to settlement negotiations. Continue reading at MarketWatch.com