Reading Room Document

"Bifurcated" Settlement Negotiations in Cases Involving Statutorily Authorized Attorneys' Fees

The document discusses the ethical and legal implications of discussing attorneys' fees in settlement negotiations before the relief to be awarded to plaintiffs is resolved. It presents the argument that such discussions may lead to conflicts of interest for the plaintiff's attorney, potentially sacrificing the client's interests for the attorney's own gain. The document reviews the case law and ABA Code of Professional Responsibility governing adversarial legal practice to determine if a flat ban on discussing fees before final settlement is required. It concludes that there is no legal basis for such a ban and that the issue should be decided on a case-by-case basis. The document also highlights the tension between a bifurcated settlement procedure and the recommended approach of having a court evaluate the total settlement, but does not find a violation of ABA ethical restrictions as a matter of law.

January 2, 1981