After filing a personal injury claim, you may want to know – “can my lawyer settle my case without my consent?” Your lawyer cannot settle your case without your permission. This is because it would breach his or her ethical and fiduciary responsibilities. Ultimately, as the client, you have the final say on whether to settle or go to trial. Your lawyer’s role is to present you with all options, offer legal counsel, and make recommendations, but the decision rests with you.
If you need assistance, contact Lloyd Miller Law Group at (773) 838-8100.
Table of Contents
The Role of Your Lawyer in an Injury Case
Your lawyer acts as your legal advisor in your case and can offer guidance based on his or her education, experience, and skills. Even if you don’t always see eye to eye, it’s important to heed your attorney’s advice, as he or she has knowledge in legal matters.
Lawyers serve as your legal representative, and are dedicated to advocating for your best interests throughout your case. A victory for you is a victory for them, so they will work tirelessly to secure the best possible outcome on your behalf.
Your attorney is bound by a fiduciary duty to act in a manner that benefits you, especially in financial matters.
The relationship between attorney and client is both professional and personal. Your car accident lawyer will fight for the most favorable case result while also providing guidance and support during a difficult time. Personal injury cases can go to trial, and part of your attorney’s duty is to take your case to trial or attempt to negotiate a settlement instead.
Negotiating Settlement
A settlement is an agreement reached outside of court, and once finalized, it becomes a legally binding contract. Therefore, both the person making the claim and the defendant must agree to its terms. Without your consent and signature, the contract is not considered valid.
When a case is settled, it means both parties have come to a mutual agreement to resolve the dispute. A successful agreement typically involves a fair settlement amount, which is usually determined after negotiations.
Settlements can happen at any point during the claims process. While the goal is often to settle before the case goes to trial, it is still possible to reach a settlement even during court proceedings.
Approximately 95% of personal injury cases are settled before they go to trial. Settling a case can save time and money. There are many advantages to resolving a claim instead of going to trial:
- It often leads to faster resolution compared to litigation
- It is a more cost-effective and time-efficient option for all parties
- Each party has a degree of influence and input into the agreement’s provisions
When presented with a settlement offer, your attorney should inform you about the proposed settlement amount, all fees associated with the case based on the agreed contingency payment, and any additional costs.
Furthermore, your attorney should keep you updated on the progress of the settlement negotiations and provide you with relevant information or facts regarding the lawsuit. Ultimately, as the client, you have the right to be fully informed and make the final decision about whether to accept a settlement offer, and your attorney can’t accept it without your consent.
Your Lawyer Can Provide Guidance Regarding Your Settlement
Your attorney can provide guidance about your settlement, assess the value of your case, and decide if a settlement adequately covers your losses. Your attorney may advise you if you receive lowball insurance settlement offers and should hold out for a higher offer. Your lawyer may negotiate a better settlement on your behalf to secure a favorable outcome for you.
Your attorney shouldn’t settle your case without your knowledge. Despite acting as your legal advisor, he or she shouldn’t make significant decisions without consulting you and receiving your permission.
Your attorney has a duty to comply with your wishes, regardless of whether he or she agrees with you or not. Ultimately, it’s your case, and your opinions and decisions are important.
When your lawyer negotiates with the opposing party, it’s usually done with the other attorney. The opposing attorney will present a settlement offer, which may or may not align with the amount requested by you and your lawyer. Your lawyer must inform you about the settlement offer, even if it matches the amount you requested.
What Your Lawyer May Do During Settlement
A personal injury lawyer can examine the details of the at-fault party’s car insurance policy to identify the maximum compensation available. Furthermore, the attorney can explore if there are additional insurance resources that could provide compensation, determine the value of the claim based on the available insurance resources, severity of the injury, and the associated expenses and psychological effects, draft a demand letter to the at-fault party’s insurer, engage with the insurer to secure a fair settlement offer and shield you from common insurance tactics to minimize or reject claims, provide guidance through the process, aiding in understanding how the claim is assessed and what constitutes a fair settlement. This information can help you decide whether to accept a settlement offer, comprehend all aspects of the offer before signing, and receive your settlement.
What Your Lawyer May Not Do During Settlement
According to the American Bar Association, a lawyer is not allowed to engage in a business transaction with a client unless the terms are fair and reasonable to the client, fully disclosed in writing, and understandable to the client. Additionally, he or she cannot use information about the client to benefit himself or herself, or a third party, without the client’s consent after consultation, provide financial assistance to a client in connection with pending litigation except for advancing litigation costs based on a contingent agreement, or accept compensation from anyone other than the client without his or her consent. In situations of financial need, a lawyer may provide guidance on obtaining appropriate financial assistance or negotiate payment deferral with creditors.
Getting Pressured to Settle
Lawyers may have different reasons for pushing clients to settle, which may or may not be in the client’s best interest. Settling may be the best option in weaker cases, as going to trial can be risky. Often, personal injury lawyers work on contingency. Therefore, a lawyer may pressure clients to settle for a quicker and more guaranteed payout, as his or her fee agreement may specify payment only upon successful recovery of compensation for the client.
Legal Requirements for Settlement
An out-of-court settlement functions as a compromise between the involved parties and operates similarly as a contract. According to the law, a contract is a legally binding agreement that outlines and regulates the rights and responsibilities of the parties involved. A settlement agreement usually includes the following:
- The parties involved
- A clause stating that the settlement does not involve admitting wrongdoing by either party
- A section outlining the agreed settlement amount that one party, typically the defendant, will pay the other
- An invoicing and payment schedule with specific information regarding the money transfer
- A “mutual release” clause stating that the parties will not make claims against each other
In Illinois civil cases, when a defendant agrees to settle, he or she must give the plaintiff a release within 14 days of confirming the settlement in writing. If the settlement needs court approval, the plaintiff must provide the defendant with a copy of the court order. Additionally, the defendant must pay all owed amounts to the plaintiff within 30 days of providing the release. If the defendant doesn’t make timely payment, the plaintiff can pursue a judgment that may include the release amount, costs, interest, and judgment costs.
Risks and Consequences of Your Lawyer Accepting a Settlement Without Your Consent
You might be wondering what occurs if the attorney settles your case without your consent. Legally, a lawyer can accept a settlement on your behalf because of the attorney-client relationship, which allows him or her to act as your representative. In this situation, the lawyer’s actions legally bind you to the settlement.
Lawyers cannot and should not agree to settlement offers on behalf of their clients without their clients’ consent. Lawyers are ethically obligated to act as counselors who always have their clients’ best interests in mind.
Reaching this point assumes that the lawyer has already violated numerous rules, such as forging your signature on the settlement agreement, which could be considered a felony. In such cases, you have options for recourse. You can pursue a legal malpractice lawsuit against your attorneys, report them to the state bar, and take legal action for fraud. You might also consider pursuing criminal charges for forgery. Despite all of this, it does not change the fact that you have legally accepted a settlement that you may not have initially wanted.
Breach of Fiduciary Duty
Your lawyer is ethically obligated to act in your best interests, and therefore needs your consent for decisions he or she makes regarding your case. Your attorney also has a duty to be transparent with you and to share all relevant information about your case. If your attorney were to accept a settlement without your approval, it would be a violation of his or her duty to you. If your attorney has breached his or her duty and caused you harm as a result, you may have the option to file a lawsuit alleging breach of fiduciary duty. This legal action could be part of a legal malpractice lawsuit in some areas, while in others, it might be a separate lawsuit specifically for breach of fiduciary duty.
Ethical Violation
Lawyers are ethically obligated to provide you with legal advice that meets the standard of quality in the legal industry.
If your lawyer has breached this ethical duty by accepting a settlement offer without your consent, you may have the right to seek compensation for resulting damages. You may also consider filing a report with the state bar association for appropriate disciplinary action. For instance, in Illinois, you would need to file a complaint with the Attorney Registration & Disciplinary Commission.
Reporting the attorney to the state bar can spark an investigation into your complaint. If the investigation confirms that the attorney indeed settled the claim without your consent, he or she may face severe consequences, including disbarment. Reporting such misconduct can protect future clients and prevent them from facing similar situations.
Suing Your Attorney After a Settlement
If your attorney violated his or her fiduciary or ethical obligation by agreeing to a settlement without your permission, you might have grounds to take legal action against him or her for malpractice. To establish a successful malpractice claim against a lawyer, you need to demonstrate the following:
- The lawyer had an established attorney-client relationship with you,
- The lawyer failed to act in your best interests, breaching his or her fiduciary duty,
- You suffered damages due to the lawyer’s breach of duty.
In the event that you find out that your attorney settled the case without your approval before receiving the settlement check, it’s advisable to terminate his or her services immediately and find a new lawyer. Your signature is necessary on the settlement agreement, so you should refuse to sign one that you didn’t authorize.
These are highly unusual situations. The majority of personal injury lawyers adhere closely to settlement regulations. If they have a disagreement with their client, they will handle it within the confines of the rules. Attorneys who are likely to violate these rules are rare, and the bar association takes strict action against those who do not adhere to the rules.
Cases like these are often intricate, and lawyers will usually challenge any claims that they breached their ethical responsibilities. For attorneys you can trust to fight for your legal rights, contact us at Lloyd Miller Law Group in Chicago.
