Also known as:aggregate settlement rules · aggregate settlements · aggregate settlement
Written by attorneys · grounded in primary & secondary sources — see below
A rule of professional conduct that bars a lawyer who represents two or more clients from participating in an aggregate settlement of their claims or in an aggregated plea agreement unless each client gives informed consent in a writing signed by the client. The required disclosure must cover the existence and nature of all claims or pleas and the participation of each person in the settlement.
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Model Codes
Hornbooks
Study Supplements
How it applies
Common Examples
2
Incomplete Disclosure in Carrier Settlement
Attorney Rivera represents four telecommunications carriers in separate contract suits against Titan Network. Titan offers a single package settlement that requires every carrier to sign new interconnection contracts. Rivera emails each carrier a summary that highlights the total cash payment but gives only high-level descriptions of the contract obligations and does not reveal how benefits or burdens are allocated among the carriers. Each carrier signs a short assent letter without seeing the other carriers' terms. The aggregate settlement rule is violated because the carriers did not receive the required disclosure of all claims and each person's participation before signing.
Lump-Sum Allocation to Homeowners
Attorney Rivera represents six homeowners and a machine shop in property-damage claims after a rocket test. The rocket company offers a single lump-sum payment to settle every claim. Rivera quietly assigns a large share to the machine shop and tells each homeowner only that homeowner's individual amount. Each client signs a release that lists only the client's own figure. The aggregate settlement rule is violated because no client received disclosure of the existence and nature of all claims or of every person's participation in the settlement.
Common questions
Frequently Asked
5
What must a lawyer disclose before clients can consent to an aggregate settlement?+
The lawyer must disclose the existence and nature of all claims involved and the participation of each person in the settlement. This includes the total amount, how each client will share in the settlement, and any nonmonetary terms that affect different clients differently. Without this information each client's consent is not informed.
Supporting sources
Does obtaining a signed release from each client separately satisfy the aggregate settlement rule?+
No. Each client must give informed consent after receiving full disclosure of all claims and every person's participation. A release that lists only one client's amount does not supply the required comparative information about the other clients' shares.
Supporting sources
Does a confidentiality agreement excuse a lawyer from disclosing participation details in an aggregate settlement?+
No. The rule requires disclosure of each person's participation regardless of any confidentiality agreement the lawyer signed. If the agreement prevents the necessary disclosure the lawyer cannot obtain valid informed consent and may not participate in the settlement.
Supporting sources
Is a group meeting and brief oral summary enough to obtain informed consent for an aggregate plea offer?+
No. Each client must receive disclosure of the existence and nature of all pleas and each person's participation and then sign a writing giving informed consent. A rushed group presentation that does not explain the interdependence of the pleas or allow clients to compare terms fails the rule.
Supporting sources
When does a settlement offer qualify as aggregate rather than individually negotiated?+
A settlement is aggregate when it resolves the claims of multiple clients represented by the same lawyer in a single package that cannot be accepted independently by any one client. The rule applies whenever the offer is conditioned on unanimous acceptance or when the lawyer must allocate a common fund among the clients.
Supporting sources
Professional ResponsibilityConflicts of interest · Current client conflicts—multiple clients and joint representationMPREFoundational