When you have suffered an injury in an accident, you have the legal right to receive full compensation for your injuries. You may file a lawsuit against the responsible party in court or submit a claim against their insurance policy. Either way, the most common result in a personal injury case is a settlement agreement before your case reaches a trial. When you settle your case, you are signing away your right to further compensation in exchange for money. Settlement agreements are binding legal contracts between you and the other party, and the court will consistently enforce them as part of an order.
You will choose when to settle your case. As the plaintiff or claimant, you will make decisions at key points in your case, and when to reach a settlement agreement is one of the most critical choices. Usually, you will make this decision after your personal injury lawyer evaluates the settlement offer and advises you about whether to accept or reject it.
Accordingly, a lawyer cannot settle your case without your consent. If this happens, they are acting against the duties they owe you as a client and the laws of the profession that they must follow. You can sue the attorney to recoup the damages you suffered when they settled your case without your permission.
Personal Injury Settlements Can Take a Long Time to Reach
The personal injury process takes considerable time from beginning to end. It may take more than a year to get the money that you deserve for your injuries, and in some cases, it may take even longer. In the meantime, your personal injury attorney may negotiate with the insurance company or defendant to potentially reach a settlement agreement. While that is occurring, you may be dealing with financial distress if you have bills to pay while you cannot earn money.
Your attorney may also have to handle their own financial issues because they do not receive payment unless you get your compensation. Although it certainly does not permit and excuse illegal behavior, a personal injury attorney may be in an economic crunch while your case is pending because they are investing time and money into it. This outcome is part of the nature of personal injury law, where lawyers work under the uncertainty of whether and when they will get paid. The contingency law system shifts this risk to the attorney, although a few bad actors may try to work their way around it.
Your Personal Injury Attorney Is Your Agent
When you hire someone as your attorney, they act as your agent and are empowered to negotiate on your behalf. And, although unusual, an attorney may sign a settlement agreement if you have given specific written consent in the proper form. Insurance companies are not privy to the details of your relationship with your personal injury attorney. For all they know, you and your attorney are on board with your lawyer’s actions. It is not the other party’s duty to determine whether your personal injury attorney is acting without your consent.
Thus, a settlement agreement that your lawyer has signed without your permission may legally bind you. Then, you must look for a way to regain your lost compensation and come after the attorney who settled the case without your consent.
Your Attorney May Have Their Own Interests in Your Case
A personal injury lawyer is supposed to put your interests first. Still, they may have their own vested financial interest in whether your case settles. Even though they are breaking the law, a personal injury lawyer may want to settle a case sooner because it means that they are guaranteed to get paid in the near term. You are the one who decides whether and when to settle your case, but there may be a minority of personal injury attorneys who break the rules and put their interests ahead of yours.
Lawyers Must Follow Strict Ethical Rules
One of the key ethical rules that attorneys must adhere to is the duty of loyalty to their clients, meaning they should act in your best interest and maintain confidentiality regarding your case. You can feel confident sharing sensitive information with your attorney, knowing they are legally bound to keep it confidential. This duty of loyalty creates a sense of trust between the attorney and client, allowing for open and honest communication throughout the legal representation.
Each state has rules that govern the legal profession and impose ethical duties on attorneys when they represent clients. These rules come from the American Bar Association’s Model Rules of Professional Conduct. Rule 1.2 governs the attorney’s relationship with their client and specifically addresses whether a lawyer needs their client’s consent to settle the case. This rule states that “a lawyer shall abide by a client’s decisions concerning the objectives of representation.” The rule also says that “a lawyer shall abide by a client’s decision whether to settle a matter.”
The ABA gives further commentary on each of its rules. The comments to Rule 1.2 states that “With respect to the means by which the client’s objectives are to be pursued, the lawyer shall consult with the client.” This statement means the attorney cannot do anything independently without first speaking with the client. Before signing, the personal injury attorney must communicate with the client about a specific settlement agreement.
A Personal Injury Lawyer Owes You Fiduciary Duties
Not only does a personal injury attorney need to follow the rules and regulations of the profession, but they also owe you specific duties as their client. A lawyer is your agent, and, as such, they owe you fiduciary duties. In addition to the duty of care, a personal injury lawyer also owes you the duty of loyalty. They must act in your interests, placing them ahead of their own. If a personal injury attorney tries to settle your case without consulting you, they are likely in breach of their fiduciary duties. They are personally liable to you for the damages that they have caused.
Although the ultimate choice rests with you, a personal injury attorney can advise whether a settlement offer is in your best interest. It is up to you to make the call. Of course, you are usually better off when you trust your personal injury attorney’s judgment. Still, you may have reasons for reaching your decision, and you can always reject your lawyer’s advice if you feel it is not in your best interest.
You or Your Attorney Can Terminate a Representation Subject to Some Limits
If there is a fundamental disagreement between you and your personal injury attorney about whether to settle a case, one or both of you may decide to terminate the representation. As the client, you have the right to end the representation at any time, subject to the attorney’s getting paid for their services provided thus far in your case (a new lawyer will have to accept the case knowing that your prior attorney will receive a percentage of the recovery).
A personal injury lawyer may also have the right to terminate the client unless it causes undue hardship. If your dispute occurs close to a scheduled trial, it becomes more complicated for a personal injury attorney to withdraw from a case. In this situation, they must seek the court’s permission to withdraw.
You May Need to Push Back When Your Personal Injury Lawyer is Pressuring You to Settle
The difficulty is when a personal injury attorney pressures you to settle a case, and you disagree. You are in a difficult position because your attorney has experience, and you want to trust their advice. Most personal injury attorneys heed their professional obligations and will act in their client’s interests. However, some want to get paid quickly for their services.
You should study your case carefully to know when to stand up for your interests. You may need to push back and tell your attorney that you are not yet ready to settle your case and want them to fight for you to get more money. Although this situation is sometimes challenging, you must look out for your interests.
Can I Get Out of a Settlement Agreement That a Lawyer Signed Without My Consent?
Whether you can get out of a settlement that you did not agree to depends on the facts and circumstances of the situation. When you have filed a lawsuit, a settlement agreement is not truly final until it is part of a court order. There may still be time to rescind the deal if you learn about it before the court has accepted it as final and dismissed your case. However, if the court has already entered it as an order, you may not get out of the agreement. There can be difficult factual questions when your lawyer has settled a case involving an insurance claim when there was no actual lawsuit.
You Can Sue the Lawyer for Settling Without Your Consent
If your personal injury attorney has settled the case without your consent, you need to hire an additional attorney with experience taking action against legal professionals. This attorney will determine whether you can sue your prior lawyer for breach of fiduciary duty or malpractice. If your case was worth more than the lawyer’s settlement amount, you can recover that in damages. In addition, if your prior attorney’s actions were egregious, you may recover punitive damages at trial.
To prove a legal malpractice case, you must have evidence that supports each of the following elements:
- The attorney owed you a duty of care to act in a certain way during their representation.
- The attorney breached the duty of care because they did not act as a competent attorney would have under the circumstances (and settling a case without your permission is certainly not the act of a reasonable attorney).
- You suffered damages from your attorney’s actions.
- Your attorney’s actions directly caused the harm that you suffered.
Here, your challenge is to prove what you could have received if your lawyer had continued negotiating your claim or lawsuit. Your personal injury attorney should have already calculated the value of your case based on the extent of your injuries. Your second attorney must look independently at your case to determine your damages. You must prove your damages in every legal case, so you cannot have speculative conclusions.
Remember, hiring a second attorney does not mean you are escalating the situation or turning it into a long, drawn-out legal battle. On the contrary, it is a strategic move to protect your rights and ensure you receive the justice and compensation you deserve. Your attorney will work alongside you, explaining the pros and cons of various options and ultimately empowering you to make informed decisions in your best interest.
Report Your Attorney to the Bar Where They Are Licensed
You should also report your attorney to the bar in their state. Since the attorney’s actions violated the rules of professional responsibility, they may have to answer in front of the state bar. They may face disciplinary action, including suspension or even disbarment. It can only help your lawsuit against the attorney if the state bar performs an investigation and finds misconduct. In addition, your actions may help other potential clients avoid the same problems you faced with that particular attorney.
Keep Open Communication With Your Attorney to Avoid a Dispute
Maintaining open and transparent communication with your lawyer throughout the process is necessary. Discuss your expectations regarding settlement negotiations and make your preferences known. A skilled attorney will always keep you informed and seek your input before making any essential decisions. This communication ensures that you are an active participant in the resolution of your case and have a say in the outcome.
Lawyers have a legal and ethical obligation to act in your best interests. Professional rules dictate they must obtain informed consent before making significant decisions on your behalf. This includes the decision to settle a case. Your attorney’s primary duty is to advocate for your best interests, and they should involve you in the decision-making process. Effective communication and a strong attorney-client relationship are key to protecting your interests throughout the settlement negotiations.
A Trusted Attorney is Standing By
If you have a legal matter and questions regarding authority and consent, you should always contact an experienced personal injury attorney with any questions you might have. Most offer free initial consultations.
