Sunday, October 2, 2011

All or Nothing Aggregate Settlements in Trouble

(With apologies to HME for stealing his title)

The Second Circuit last week (just in time for the Jewish New Year) decided Johnsons v. Nextel Communications, Inc., -- F.3d -- , 2011 WL 4436263 (2d Cir. Sept. 26, 2011) .  You can find the opinion here.  That case involved an aggregate settlement with all kinds of schenanigans that our own Howard Erichson described in his article "The Trouble With All or Nothing Settlements." (download it while its hot! ...as they say....)

The Second Circuit allowed the clients to sue the lawyers on a broad breach of fiduciary duty theory.  The clients may also sue the defendants on an "aiding and abetting" theory.

I learned from this opinion from Adam Zimmerman (St. John's) who has also blogged about it on the ADR Prof Blog

ADL

http://lawprofessors.typepad.com/mass_tort_litigation/2011/10/ethics-and-aggregate-settlements-the-latest.html

Aggregate Litigation Procedures, Ethics | Permalink

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