A California appeals court has voided a provision in a contingent-fee agreement that gave personal injury lawyers the “sole discretion” to settle a client’s case.
The Fourth Appellate District in the California Courts of Appeal ruled last week that the provision violates attorney ethics rules and is void to the extent that it allows an attorney the right to accept a settlement over the client’s objection.
Law360 has coverage.
The provision gave lawyers from Jolly Berry Law the authority to accept settlement offers for client Sayedeh Sahba Amjadi, as long as the lawyers thought in good faith that the settlement offer was reasonable and in the client’s best interest. Jolly Berry Law is a personal injury law firm located in Mission Viejo, California.
Amjadi had signed the contingent-fee agreement, but she objected when one of her lawyers, Kevin Jolly, accepted a $150,000 settlement offer on the morning of trial in her automobile crash case.
Jolly accepted the offer after the trial judge denied a motion filed by Amjadi’s attorneys to be relieved as counsel.
The motion cited a conflict of interest after Amjadi’s relationship with her lawyers had soured, partly because of a disagreement on whether to seek a continuance of the trial.
After Jolly agreed to the settlement, the trial judge accepted the deal and dismissed the case. Amjadi hired a new lawyer, who filed a motion to vacate the judgment.
The appeals court overturned the dismissal and referred Jolly and two other former...
Read Full Story: https://www.abajournal.com/news/article/agreement-giving-lawyers-sole-discretion-to-settle-clients-case-violates-ethics-rules-appeals-court-says
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