Qualified settlement funds: Plaintiff
Getting the money out of the defendant's pockets while you work on a long-term plan for the client. If you are involved in a business dispute, for the settlement hire a business dispute attorney.
Plaintiff benefits in larger cases
Mass tort situations or in cases with many plaintiffs involve all of the benefits above relating to insolvency, interest, structured settlements, special needs trusts, conservatorships, guardianships and estate allocations. In addition, in large cases, putting the money into a fund permits plaintiffs’ counsel to satisfy the aggregate settlement ethical rules. Often the plaintiffs’ firm does not know the extent of its pool of clients, more of which come forward during settlement negotiations. The aggregate settlement rules prevent the firm from agreeing to a settlement proposal without notice to and । informed written consent from each client. Those rules do not, however, prevent putting the agreed amount into a 1 fund while those rules are satisfied.
The ethical rule applicable to aggregate settlements is based on the American Bar Association Model Rule . It varies only slightly by state. The rule is:
A lawyer who represents two or more clients shall not participate in making an aggregate settlement of the claims of or against the clients . . . unless each client consents after consultation, including disclosure of the existence and nature of all the claims or pleas involved and of the participation of each person in the settlement.
In order for an attorney to agree to an aggregate settlement on behalf of two or more plaintiffs, the attorney must obtain the informed written consent of each. If the amount [that] each is to receive is different, then the client must ! be told the amount others are receiving 1 and why those amounts are different. Those steps may involve the develop-ment of a grid to make the allocations or *• the appointment of a Special Master to make those allocations. Our experience is that the rule is often ignored in cases with two or three plaintiffs. The penalty, however, if the rule is ignored and a client later complains can be forfeiture by the attorney of his or her fees.
The ethical rule applicable to aggregate settlements is based on the American Bar Association Model Rule . It varies only slightly by state. The rule is:
A lawyer who represents two or more clients shall not participate in making an aggregate settlement of the claims of or against the clients . . . unless each client consents after consultation, including disclosure of the existence and nature of all the claims or pleas involved and of the participation of each person in the settlement.
The ethical rule applicable to aggregate settlements is based on the American Bar Association Model Rule . It varies only slightly by state. The rule is:
A lawyer who represents two or more clients shall not participate in making an aggregate settlement of the claims of or against the clients . . . unless each client consents after consultation, including disclosure of the existence and nature of all the claims or pleas involved and of the participation of each person in the settlement.
The ethical rule applicable to aggregate settlements is based on the American Bar Association Model Rule . It varies only slightly by state. The rule is:
A lawyer who represents two or more clients shall not participate in making an aggregate settlement of the claims of or against the clients . . . unless each client consents after consultation, including disclosure of the existence and nature of all the claims or pleas involved and of the participation of each person in the settlement.