Legal Question in Legal Malpractice in Delaware

Settlement offer illegal or unethical?

Is it illegal or unethical for an attorney to offer to pay a settlement to his own client on his adversary's behalf? The case is a bankruptcy preference action; I am the pro se defendant. Plaintiff's counsel has made several documented errors in this proceeding, and they recently offered to ''fund a $2,000 settlement on your behalf'' in return for the withdrawal of my motions for summary judgment and sanctions.

This struck me as odd - but is it illegal or unethical? Should I report this to the judge (and how would I go about that without making an ex parte communication)?

Thanks!


Asked on 8/28/03, 8:18 am

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Settlement offer illegal or unethical?

Not seeing the matter entirely, I am unable to discern whether the basis for the settlement is equitable in nature or motivated solely upon putative sanctions. If the attorney is paying for a debt on behalf of his client from his funds then, based on this bald assertion, the attorney has, at a minimum, erred in the filing. You make no mention as to the type of filing (and I assume Chapter 7). You should have brought this matter at the creditor hearing.

Basically, it seems that a defalcation has occurred. Bankrupcy judges, as with any judge, can err on expediency rather than conservancy. With the limited factual matter provided, I cannot state whether it would be best to take the $2,000 or raise the issue further. Exparte communication is not the preferred course of action. You should contact an attorney with fees that are scaled to your matter.

Joe Holthaus

(410) 799-9002

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Answered on 8/29/03, 12:48 am


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