Non Lawyer Negotiated Settlement Draws Reprimand

The Georgia Supreme Court accepted a petition for voluntary discipline and imposed a public reprimand of an attorney

In his petition, Michael, who has been a member of the State Bar of Georgia since 1996, admits that in June 2019, his law firm was hired to represent a client in a personal injury case, which Michael worked on with his nonlawyer assistant. Michael timely filed suit in state court on the client’s behalf. In March 2021, the nonlawyer assistant informed Michael that the defendant’s insurer had made a settlement offer of $110,000, and Michael instructed her to convey that offer to the client. A few days later, the assistant informed Michael that, with the client’s consent, the parties had reached a settlement of $115,000. However, when Michael spoke with the client, she denied authorizing the settlement. On March 16, 2021, Michael voided the settlement check and returned it to the insurer. The defendant filed a motion to enforce the settlement, which the client opposed through new counsel. The state court denied the motion, finding that Michael’s nonlawyer assistant  “performed more than ministerial duties and it [did] not appear that the settlement was negotiated by [Michael] on behalf of [the client].”

Mitigation

in March 2019, Michael was diagnosed with cancer and had to undergo several surgeries and radiation, leading to other health-related maladies. Michael admits that his medical procedures preceded the unauthorized settlement in 2021, but states that the associated stress was still affecting him personally and professionally at the time the unauthorized settlement occurred.

(Mike Frisch)