January 01, 2019 Scruples

Aggregate Settlements

Such arrangements can bring the differing interests among clients to the fore.

Michael Downey

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Paradox approached Ethox, seeking guidance. “I have questions about a possible settlement,” Paradox said. “Remember how we were representing a group of plaintiffs suing ACME Industries for exposure to toxic fumes?”

“Yes,” Ethox said.

“Well, Nemesis represents ACME,” continued Paradox, “and just offered a large lump-sum settlement, saying that if we can settle all our clients’ claims, we could divide the funds among our clients.

“Such an arrangement seems to raise a whole mess of conflicts,” said Paradox with concern. “Some of our clients seem anxious to settle. Others seem far more prepared for a long fight. And some will let the amount of money they are to receive determine what they think of the settlement.”

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