Multistate Professional Responsibility Examination (MPRE)The Client-Lawyer RelationshipEasy

A lawyer represents a client in a personal injury case. The client expresses a strong desire to settle the case quickly, even if it means accepting a lower amount than the lawyer believes is fair, due to urgent financial needs. The lawyer informs the client of the estimated fair value of the claim and the potential for a higher recovery if the case proceeds to trial, but the client insists on accepting the immediate, lower settlement offer. What is the lawyer's ethical obligation regarding the settlement decision?

  1. AThe lawyer should seek court intervention to determine the reasonableness of the settlement offer.
  2. BThe lawyer must refuse to accept the lower settlement offer, as it is not in the client's best interest.
  3. CThe lawyer must abide by the client's decision to accept the settlement offer, as the client has ultimate authority over settlement.
  4. DThe lawyer must withdraw from representation if the client makes an objectively unreasonable settlement decision.
Show answer & explanation

Correct answer: C. The lawyer must abide by the client's decision to accept the settlement offer, as the client has ultimate authority over settlement.

Model Rule 1.2(a) clearly states that a lawyer shall abide by a client's decision whether to settle a matter. While the lawyer should advise the client on the best course of action, the ultimate decision on settlement belongs to the client, even if the lawyer believes it's not the optimal outcome.

Why the other options are wrong

  • A. Seeking court intervention on a client's settlement decision, when the client is competent, is generally inappropriate and undermines client autonomy.
  • B. The lawyer's role is to advise, but the final decision on settlement rests with the client, as per Rule 1.2(a).
  • D. A client's decision, even if considered 'unreasonable' by the lawyer, does not typically trigger mandatory withdrawal unless it involves criminal or fraudulent conduct.

Client's Authority on Settlement

Under Model Rule 1.2(a), the client has the ultimate authority to decide whether to settle a matter. The lawyer must abide by this decision after consulting with the client and explaining the implications.

  • Settlement is an 'objective' of representation.
  • Lawyer advises, client decides.
  • Applies even if the lawyer disagrees with the client's decision.

Memory trick: The client holds the 'Target' for the case, the lawyer aims.

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