There are two scenarios, each similar in premise, that cause problems for lawyers with respect to settlement of their client’s legal matter.  At the root of each of them is an executed settlement agreement where the client is absent in some form or fashion from the process.  

In the first scenario, the client enters into a representation agreement with the lawyer in which the client agrees to give the lawyer power of attorney to sign documents necessary to effect settlement and/or resolution of the lawsuit. The client thereafter verbally authorizes the attorney to settle the case for a certain amount, which the lawyer does. However, when the opposing party circulates the formal settlement documents, the lawyer does not send them to the client. Instead, because it is easier and allegedly more efficient, the lawyer signs the documents on the client’s behalf pursuant to the power of attorney in the representation…