An attorney represented a client in a case against the client's former business partner. In her deposition, the client truthfully testified that she had lost her $100,000 investment in the partnership after her business partner negligently supervised the construction of a bistro (the business of the partnership). During the pretrial phase of the case, the business partner's lawyer called the attorney and offered to settle the case for $15,000. The attorney became indignant, called the offer insulting, hung up the telephone, and did nothing further. What obligation, if any, did the attorney have under the Model Rules?

Question

Quizplus · Accepted Answer

An obligation to convey the settlement offer to the client for consideration. A lawyer must "reasonably consult with the client about the means by which the client's objectives are to be accomplished; [and] keep the client reasonably informed about the status of the matter." Model Rule 1.4(a). A lawyer must promptly notify a client of the substance of a settlement offer unless the client previously established acceptable and unacceptable settlement limits. Answer C is the best choice because the attorney did not convey the settlement offer to the client. Answer A is not the best choice because the attorney did not have any such obligation. Answer B is not the best choice because no such obligation to accept a settlement offer exists.

An Attorney Represented a Client in a Case Against the Client's