An aggregate settlement is one in which multiple clients of the same lawyer resolve their claims together, with a total amount divided among them. It is defined by the collective nature of the deal rather than by its size.
Model Rule 1.8(g) requires that each client consent after disclosure of the existence and nature of all the claims, the total settlement, and the share each participant will receive.
Alternative Names:
Aggregate Resolution
Why it Matters?
The consent requirement is the operative constraint and it is regularly the subject of litigation and discipline. Blanket advance consent, or consent obtained without disclosing other claimants' allocations, does not satisfy the rule in most states. For defendants, the risk is that a deal negotiated in good faith later unravels because the plaintiff firm's consent process was defective.
Frequently Confused with
Frequently asked questions
What must clients be told before consenting?
Can clients consent in advance?
