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New Proposal Would Require Civil Defense Lawyers to Notify Plaintiffs of Settlement


The LADB Office of Disciplinary Council may soon propose amendments to the Louisiana Rules of Professional Conduct requiring the lawyer for a defendant in a civil action to send notice of an impending settlement directly to the plaintiff notwithstanding that the plaintiff is represented by counsel. The Department of Insurance may propose parallel legislation imposing such an obligation on Louisiana insurance companies. Similar proposals have been considered in other states and by the ABA. These proposed standards are designed to prevent plaintiffs’ lawyers from converting settlement proceeds received on behalf of clients. We’ll keep you posted as these proposals develop.

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This entry was posted on January 12, 2010, 11:41 am and is filed under Louisiana Recent Developments, Louisiana Rule Making. You can follow any responses to this entry through RSS 2.0. You can leave a response, or trackback from your own site.

  1. #1 by Robert Louque on January 12, 2010 - 6:10 pm

    I think this is a fantastic idea. Not only will it prevent conversion of client funds, it will also help prevent a client’s matter from being settled without the client’s consent.

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  2. #2 by Montel on February 11, 2010 - 10:22 am

    I think it is a bad idea in that it violates the prohibition on contact with a represented party. Aren’t there already rules governing conversion of settlement proceeds?

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  3. #3 by EL Hightower on March 16, 2010 - 12:08 pm

    I must agree with Montel. I certainly understand the “good intentions”, but it clearly violates the “bright-line” prohibition against direct contact with a represented party. At what point would this requirement arise? When you first start talking settlement? When you start putting numbers on the table? When opposing counsel rejects your offer? When opposing counsel makes an obsured demand / offer? When a written confirmation of the agreement is sent? When the check is sent? When the draft release is forwarded for review?

    What if opposing counsel rejects the offer? Do you advise the party of the offer? What if the opposing party contacts you directly and attempts to negotiate a different agreement? Do you negotiate with the party? Obviously not, but it seems this requirement just creates more problems for both sides.

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