August 01, 2012

Scruples: Sinister Secret Settlements

A tangle of ethical problems can ensnare a party who secretly settles in a multiparty case.

Michael Downey

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Relief showed on Paradox’s face. “Kaye has offered Jay a secret settlement,” Paradox told Ethox.

“Secret?” Ethox asked. “Don’t you mean confidential?”

“No,” Paradox responded. “It will be secret from the judge and from the jury. Jay also will get a credit for any judgment Kaye can obtain against the other defendants.  The settlement will be secret so Jay can help Kaye press claims against the codefendants.”

“This sounds unethical,” Ethox warned.

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