Lawyer Settled Injury Case Without Client Consent: What Now?
A man's attorney settled his personal injury case without authorization and is now withholding funds. Here's what the victim can do.
A personal injury client is facing a legal nightmare after his attorney settled his case without obtaining consent, according to a MarketWatch reader question. The relationship between the client and his lawyer reportedly deteriorated rapidly, leaving the injured man without a say in the resolution of his own claim — a serious breach of professional ethics and, in many jurisdictions, the law.
At the center of the dispute is the settlement money itself. The former attorney is now holding the funds and asserting that he is owed attorney's fees, effectively using the settlement as leverage. This puts the client in the difficult position of fighting his own legal representative for compensation he may have never agreed to accept in the first place.
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An attorney is legally and ethically obligated to obtain a client's informed consent before agreeing to any settlement. Settling without that approval is not just a contract violation — it can constitute legal malpractice and may be grounds for a bar complaint with the state disciplinary authority that licenses attorneys. Clients in this situation generally have several avenues available, including filing a grievance, pursuing a malpractice lawsuit, or seeking fee arbitration.
The question of attorney's fees adds another layer of complexity. Even if a lawyer does wrongful work, courts may still weigh whether some compensation is owed — but an unauthorized settlement significantly weakens any such claim. The client may be able to challenge both the validity of the settlement itself and the attorney's right to retain any portion of the funds.
Anyone caught in a similar situation should consult an independent attorney as soon as possible and document all communications with the former lawyer. Acting quickly matters, since statutes of limitations apply to malpractice claims just as they do to other legal actions. Continue reading at MarketWatch.com
