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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