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Arbitration & Mediation

: Florida Arbitration Law

Does a Lawyer Have Client Authority to Serve a Proposal of Settlement?

By Christopher B. Hopkins, Esq.

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The question of settlement is certainly without our focus of arbitration and mediation. We note this interesting Fourth DCA case involving questions of a lawyer's authority to settle and/or serve a Proposal for Settlement. In Julio and Alejandra Ponce v. U-Haul Co. of Florida et al., a personal injury plaintiff lawyer had a retainer agreement with his client which gave the lawyer authority to negotiate settlement. Deposition testimony seemed to suggest that discussions about settlement occurred. Nowhere, however, was there a discussion between plaintiff and lawyer about the lawyer serving a $95,000 Proposal for Settlement.

The Fourth DCA ruled that there is a strict standard of proof in determining whether a client authorized a lawyer to settle a client's claim and that the lawyer's good faith belief of authority was not enough. The Court even noted a 1965 case which apparently states that even a contract giving the lawyer the right "to negotiate settlement" was not a clear and unequivocal.

Practice tip: memorialize settlement discussions with your client in writing.

Full post as published by Florida Arbitration Law on January 31, 2008 (boomark / email).