Regarding aggregate settlements with multiple clients, what is required?

Regarding aggregate settlements with multiple clients, what is required?

• A. Informed consent, generally in writing, from all clients involved.
• B. Consent is not required if clients are from the same firm.
• C. Consent can be implied from conduct.
• D. Aggregate settlements are always prohibited.

Answer: (A)

When settling the claims of more than one client, the lawyer must obtain informed consent from each client, usually in writing, after full disclosure of the existence and nature of the other participants and the effect on each client's own claims. This requirement protects each client from being bound by a settlement that may not align with their interests and helps prevent conflicts of interest from creeping in unnoticed. The written disclosure should spell out that other clients are part of the settlement, how the settlement funds will be allocated, any impact on a client's ability to pursue other claims, any potential conflicts among the clients, and the suggestion that independent counsel may be advisable for each client. Only with informed consent from all clients can the aggregate settlement proceed; consent cannot be inferred from conduct, nor does belonging to the same firm eliminate the need for consent, and aggregate settlements are not categorically prohibited.

When settling the claims of more than one client, the lawyer must obtain informed consent from each client, usually in writing, after full disclosure of the existence and nature of the other participants and the effect on each client's own claims. This requirement protects each client from being bound by a settlement that may not align with their interests and helps prevent conflicts of interest from creeping in unnoticed.

The written disclosure should spell out that other clients are part of the settlement, how the settlement funds will be allocated, any impact on a client's ability to pursue other claims, any potential conflicts among the clients, and the suggestion that independent counsel may be advisable for each client. Only with informed consent from all clients can the aggregate settlement proceed; consent cannot be inferred from conduct, nor does belonging to the same firm eliminate the need for consent, and aggregate settlements are not categorically prohibited.