MBE Rules · Professional Responsibility
Aggregate Settlements
Cal. Rule 1.8.7
The rule
A lawyer for multiple clients may not participate in an aggregate settlement unless each client gives informed written consent after disclosure of everyone's shares and the total terms.
In plain English
When a lawyer represents multiple clients, they cannot agree to a settlement that affects all clients without first getting written consent from each client. This consent must be informed, meaning the lawyer has to disclose how much each client will receive and the overall terms of the settlement.
Worked example
A lawyer represents three clients in a personal injury case. The lawyer negotiates a settlement of $300,000 but does not inform each client of how much the others will receive. If the lawyer proceeds with the settlement without obtaining written consent from all three clients, the settlement is invalid.
Memory hook
No group deals without individual seals!
The trap
Exams may present scenarios where clients seem to agree to a settlement verbally, leading students to mistakenly think consent is sufficient without written confirmation.
How examiners test it
Questions often involve a fact pattern where multiple clients are represented, and students must identify whether proper consent was obtained for an aggregate settlement.
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More Professional Responsibility rules
- Duty of Confidentiality · Cal. Bus. & Prof. Code § 6068(e); Rule 1.6
- Client Trust Account — IOLTA · Cal. Rules of Prof. Conduct 1.15
- Duty to Report Misconduct · Cal. Rules of Prof. Conduct 8.3
- Unconscionable Fees · Cal. Rule 1.5
- Fee Division Among Lawyers · Cal. Rule 1.5.1
- Compensation from Third Parties · Cal. Rule 1.8.6