Every lawyer has faced this situation: The
other side has placed a good offer on the table, but your client
refuses to take it.
What to do?
Under legal ethics rules - ABA Model Rule 1.2 (a) - it is
ultimately the client's decision whether to settle a case or head to
trial. But the lawyer has a duty to ensure the client makes a fully
informed decision. And, in truth, clients look to lawyers to guide
them and to make a recommendation.
"I don't think you can take a hands-off approach and say,
'Whatever the client wants, we'll do,'" said Leo Boyle, a Boston
trial attorney and former president of ATLA. "It's incumbent upon
you to lay out what juries are doing, what the statistics are, what
the time line is for getting to trial, and what the time line of the
appellate process is."
If you've educated the client fully about the risks of trial and
the benefits of settlement, then you've done your job, Boyle said.
After that, "If the client says, 'It's important for me to get at
the truth and expose it in court,' then so be it."
So - how do you educate a client on the value of accepting a
settlement?
Start Early
It's important to tell clients in initial meetings how unpredictable
and risky litigation can be. Many clients, convinced of the
"rightness" of their position, are certain there's no way they can
lose. Unless the lawyer disabuses them of this notion early on, even
the best settlement offer may fall on deaf ears.
When clients look at the plaques and framed newspaper articles on
the office walls of Andrew C. Meyer Jr., they are certain he can
land a record-winning verdict for them, too.
"I say, 'Yeah, but those are the cases where there was no
offer,'" said Meyer, a Boston attorney who concentrates in
catastrophic cases of medical malpractice. "I tell them that 94
percent of med-mal trials are won by the defendants, so there are
big risks of going to trial."
From the outset, clients should be told that the astronomical
verdicts they see on TV or read about in the newspaper are often
anomalies that are reversed on appeal or significantly reduced. They
should understand that litigation is a long process that takes a
toll not just financially but emotionally. They should be kept
abreast of the particular political climate: whether juries in the
jurisdiction are more conservative than elsewhere, for example.
"Expectations at the outset frequently are unreasonable," said
Michael L. Roberts, a plaintiffs' attorney in Gadsden, Ala. "They're
based on the publicity that attends large verdicts, and also what
you might call propaganda from tort-reform advocates. It gives
people the impression it's very easy to go into a courthouse and get
money, when in fact that's not the case at all. You have to spend
some time giving them information that counters the effect of this
propaganda."
That lack of perspective isn't restricted to members of the
general public.
When they become personal-injury plaintiffs, businesspeople -
who've been heavily influenced by the tort-reform movement - often
are the hardest to convince, Roberts said, "because they receive a
less-than-evenhanded presentation of what the jury system really is.
So the educational process can be more challenging when you have
somebody with a pre-existing mindset."
Give It Time
Many clients - including those in divorce, personal injury, and
employment matters - tend to be highly emotional at the start of a
case. They are so eager to tell their story in court that they can't
yet accept that they might do better to accept a good offer and
forget about court. It may take months before they are willing to
discuss the concept of settlement.
Bruce Dorner, a solo in Londonderry, N.H., allows his divorce
clients a cooling-off period, after which the emotions often settle
down and the reality of the high cost of legal fees of protracted
litigation begins to take hold.
Once this begins to happen, the client is more able to listen
openly to a detailed presentation of the relative risks and rewards
of taking the case to trial.
Present the risks.
The bottom line is that jury trials are always a gamble. And lawyers
must help clients understand this fact.
"I tell clients that if you try the same case 10 times, you'll
only win five times. And those five wins will have different
numbers," Meyer said. "I talk about rolling the dice, and that we
don't know, nobody can know what will happen at trial until you do
it. And the question is, what can they afford?"
For example, can a financially strapped family risk losing
$500,000 in hopes of getting another $250,000?
Let them know it's their decision.
"If the client doesn't want the deal, you don't want to browbeat
them, because you don't want them to come back and blame you," said
Nancy Shilepsky, a plaintiffs' employment litigator in Boston. "So
at the end of the day, it has to be their decision, even if you
think you know what right for them. You can advise them strongly.
But you cannot make the decision for the client."
Meyer, who has landed more than $95 million in verdicts and
another $150 million in settlements, makes it clear that he loves to
go to trial. He wants clients to know that when he recommends a
settlement, it's not because he's afraid of the courtroom.
"I tell them I'd rather go to trial, but they're the boss," he
said. "If they want me to try it, I will. If they want to settle,
I'll do that. But I have the obligation to give them the information
so they make the choice. I'm empowering them, and letting them know
it's all up to them. But I also give them tools to make that
decision. I tell them, 'If this were my money, this is what I'd
do.'"
Engender trust.
It's tricky to move from the role of advocate to the role of
counselor. Many clients - upset about the injury that led to the
lawsuit - want their day in court, no matter what the risks. They
may become suspicious when their lawyer suggests that settlement
might be a good idea. "They say, 'You're not worried about me,
you're worried about your money,'" said Bernard J. DiMuro, a
litigator in Alexandria, Va.
Clark Brewster, a trial attorney in Tulsa, Okla., who's won
numerous multi-million-dollar verdicts, said it's impossible to get
clients to accept your advice unless you've earned their full
confidence.
"Sometimes, when a case is so good, the defense will want to
settle it quickly," he said. "But the client hasn't formed a bond
yet with lawyer that's needed for him to be deferential" to the
advice to settle. Typically, that trust is formed after the client
has spent enough time with the lawyer. "Most of the time, our
clients have been to many, many depositions and we've had many, many
office conferences, so that they really do feel they can rely on our
advice."
If clients are educated from the outset and kept informed of
important developments throughout litigation so that they trust him,
Meyer finds they rarely ignore his recommendations. "The client
could have a leg fracture and get offered $1 million, and they'll
say to me, 'Is that good?' They only know what you tell them,
because the client is uneducated in the value of a claim. So it's
important to have communication with them that's open and
trustworthy, because they haven't got a clue," he said.
Present settlement as a victory.
It's critically important to acknowledge the client's feeling that
no amount of money can restore what they've lost.
"You have to pay respect to the issue that brought them here in
first place," Meyer said. Otherwise, clients see settlement as some
kind of concession or loss rather than a beneficial resolution to
the case. "I let them know that it's a win."
Brewster explains to his clients the financial advantages of
settlement. For many, a structured settlement paid out over time is
more attractive than a lump-sum verdict. Also, any portion of a
verdict designated as punitive is taxable, but damages for personal
injury are not. As a result, a smaller settlement amount can
actually result in the plaintiff receiving a greater net dollar
figure.
With divorce clients, Dorner emphasizes the value of retaining
control over the outcome.
"I tell my clients, 'In a privately agreed settlement, we will
write down all the words we've agreed to, and then you, the clients,
sign it. But if we go to court, that process is reversed. We've
given the judge a blank sheet of paper with your signatures on it,
and whatever the judge writes down, we'll have to live with. Now,
which method would you rather use with your family and your
ex-spouse?' Do they want control or do they want to give it to
judge?"
Dorner also warns clients that if they come away from the table
feeling like they've scored a major victory, the inequity of the
situation will probably come back to haunt them. This is especially
true in situations involving children, where the parties will have
an ongoing relationship.
"My view of a settlement is: When you get up from table grumbling
that you gave up more than wanted, but at least it's over, it's
probably a fair deal. Nobody should get up from table cheering for
joy. Everybody should feel they gave up more than [they] wanted but
at least it's over," he said.
Getting An Outside Perspective
Lawyers often find themselves performing a tightrope walk,
struggling to maintain the delicate balance between being a zealous
advocate and a counselor who provides sobering advice. When they see
the case as having serious weak points and begin cautioning a
reluctant client that settlement might be the prudent course of
action, they run the risk of being seen as a traitor.
This is when it's often helpful to provide the client with an
outside perspective.
Mediation. "There are some deals the client should take.
It just makes sense. And ADR is a really good tool" to help the
client see that, said Shilepsky. A mediator gives client some
objective measure of the offer.
"If you push too hard on a client, they may worry you're not in
their corner," she said. "That's the worst thing. It really
undermines the relationship. Sometimes it's better if they hear it
from a third party than from you."
Brewster often relies on experienced mediators to help his
clients see the light.
"Many times they're former judges, who can offer a perspective on
the strengths and weaknesses of the case," he said. "The lawyer has
been their champion, saying, 'Yes, we're gonna get 'em, we're gonna
win!' When the lawyer starts saying, 'We have problems with the
case,' they don't want to hear it. It's best to let that come from a
mediator, who can say, 'I've listened to both sides, [and] I can
tell you having been in courtroom for 20 years, you may lose this
case."
Focus groups.
Donald Beskind, a plaintiffs' personal injury attorney in Raleigh,
N.C., uses focus groups to show how real jurors view the case.
"Sometimes we find the focus groups see the case as worth a lot
more than we think, but that's rare," he said. "More often, the
clients find the case isn't worth as much as they think. It can also
be useful when clients think a particular theory or witness -
including themselves - are strong, but we have doubts about it. They
often find that theory or witness isn't as strong as they think."
Beskind uses this method only in high-end cases, when trial is
nearing and it's advantageous to have focus group input anyway.
Typically, he gives a full presentation of the case to a large
enough group - say, 32 people - that later is divided into four
deliberative groups. Costs range from $5,000 to $10,000.
"But if you end up going to trial, all that you learn from the
focus groups is very helpful," he said.
Watching the focus groups can also strengthen a client's resolve
to go to trial if they are in doubt, he noted.
"We don't use focus groups to create an outcome, we use it for
education. But it can result in an outcome, including the choice to
go to trial," he said. "It's not a frequent problem that clients'
goals and expectations are different from ours, but when it happens,
this is a reasonably scientific way of resolving that."
Get a second opinion.
In one instance, Boyle - with the permission of defense counsel -
asked the judge to talk to a reluctant plaintiff.
"He just chatted with him, and talked about what he'd seen over
many years on bench, what juries can do, and the surprises you can
get from jury," Boyle said. "He talked about the advantages of the
certainty of settlement. He did it in very gentle way, not forceful,
not trying to be an advocate, but just talking to him as a consumer
of the legal system, a person who was in the civil justice system as
a customer, if you will, and the judge wanted to make sure he made a
good decision."
On another occasion where he felt he wasn't adequately
communicating the risk of trial, Boyle asked a renowned plaintiffs'
lawyer from another firm to talk with his client. It gave the client
confidence in Boyle's recommendation.
Juries Are Always A Crapshoot
Boyle said it's only in a handful of cases that his clients have
been unwilling to follow his advice. Still, it happens to every
lawyer.
And what makes dealing with these cases so difficult is the
ever-present possibility that the client who refuses to settle a
weak case, will beat the odds in court.
Meyer chuckled remembering one particularly obstinate client.
"We had one case, the guy was a methadone addict and he'd been in
a car accident," he recalled.
The defendant was a wealthy businessman.
"Our client though he'd hit the lottery. I think they offered
$100,000 - and his only complaint was headaches! And he was on
methadone! But he wanted to try the case. We said to him, 'Are you
out of your mind? You have a dent in your car and headaches!' But he
demanded a trial."
On the stand, the plaintiff admitted under cross-examination that
he'd lied to the insurance company about the value of his car and
had turned back the odometer.
"I got him out in the hall and said, 'You've got to be crazy! You
just admitted insurance fraud on the stand,'" Meyer said.
But it turned out his client had gambled well. The jury came back
with a $300,000 verdict.
Meyer laughed at the memory. "I was stunned, I was stunned," he
said.

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