LEO: Attorney/Client - Aggregate Settlement of  LE Op. 1069

 

Attorney/Client - Aggregate Settlement of Claims.

 

April 18, 1988

 

You advise that you represent two clients (A and B) employed by the same

employer in two civil lawsuits setting forth claims arising out of

improper conduct by the employer in the past relative to both clients.

Recently, A engaged in improper activity, which could serve as a basis for

his lawful termination by the employer.

 

You wish to know whether it is unethical for you to propose to settle B's

case upon the condition, inter alia, that the employer not fire A. You

state that it may be assumed that both employees fully understand and

agree to the proposed course of action.

 

 DR:5-107 states that "a lawyer who represents two or more clients

shall not make or participate in the making of an aggregate settlement of

the claims of or against his client, unless each client has consented to

the settlement after being advised of the existence and nature of all the

claims involved in the proposed settlement, of the total amount of the

settlement and of the participation of each person in the settlement."

 

The Committee opines that "if each client has consented to the settlement

after being advised of the existence and nature of all the claims involved

in the proposed settlement, of the total amount of the settlement and of

the participation of each person in the settlement," it would not be

improper for you to propose settling these cases upon the condition that

the employee not fire A. Although you state that the employees understand

and agree to the proposed course of action, the Committee advises that the

employees must be advised of all the factors set forth in DR:5-107. See

also LE Op. 616 and LE Op. 781.

 

Committee Opinion April 18, 1988