Written by attorneys · grounded in primary & secondary sources — see below
A resolution of claims held by multiple clients of the same lawyer that is offered on terms requiring unanimous acceptance or withdrawal of the entire proposal. The lawyer may participate only after disclosing the existence and nature of all claims involved and the participation of each person in the settlement and after obtaining each client's informed consent in a signed writing.
Sources & Authorities· 1 primary source
Select any source to read its text and confirm it supports the definition.
Model Codes
Casebooks
Hornbooks
How it applies
Common Examples
2
Telecom Carriers Global Offer
Attorney Rivera represents four carriers in separate suits against Titan Network. Titan offers one package that releases every claim only if all carriers sign new interconnection contracts. Rivera emails each carrier a summary of total cash but omits the differing long-term obligations and allocation details. Each carrier signs a short assent letter without seeing the others' terms. The arrangement constitutes an aggregate settlement because the offer is conditioned on unanimous acceptance and Rivera failed to provide the required disclosures before obtaining signed consents.
Homeowners and Shop Lump Sum
Attorney Rivera represents six homeowners and AeroFab after rocket debris causes damage. The rocket company offers one lump-sum payment to resolve all claims. Rivera allocates a large share to AeroFab without telling the homeowners the total amount or other shares. Each client signs a release listing only its own figure. The offer is an aggregate settlement because acceptance by all is required and the clients never received the mandated information about every participant's share.
Common questions
Frequently Asked
5
What makes a settlement aggregate rather than a group of individual settlements?+
A settlement is aggregate when a single offer resolves the claims of multiple clients represented by the same lawyer and acceptance by all is required or the offer is withdrawn. The rule applies because the lawyer must balance competing client interests in one package. Clients therefore need comparative information about every claim and every share before deciding.
Supporting sources
Must the lawyer disclose every client's exact settlement amount?+
Yes. The disclosure must include the existence and nature of all claims and the participation of each person, which covers what every client will receive or pay. Without that information each client cannot evaluate whether its own share is fair relative to the others.
Supporting sources
Does a signed release listing only one client's amount satisfy the consent requirement?+
No. Each client must give informed consent in a writing after receiving the required disclosures about all claims and all participants. A release that shows only the signer's own figure does not supply the comparative information the rule demands.
Supporting sources
Does the aggregate-settlement rule apply to package plea offers in criminal cases?+
Yes. The rule expressly covers aggregated agreements as to guilty or nolo contendere pleas. Each client must still receive full disclosure of all pleas and each person's participation and must give informed consent in a signed writing.
Supporting sources
Can a confidentiality agreement excuse the lawyer from disclosing allocation details?+
No. The rule requires disclosure of each person's participation regardless of any confidentiality promise the lawyer made to the opposing party. If confidentiality prevents the necessary disclosures, the lawyer cannot obtain valid informed consent and may not participate in the settlement.
Supporting sources
Professional ResponsibilityConflicts of interest · Current client conflicts—multiple clients and joint representationMPREFoundational