Ethical Guidelines for Settlement Negotiations

Settlement negotiations are an essential part of litigation. In light of the courts' encouragement of alternative dispute resolution and in light of the ever increasing cost of litigation, the majority of cases are resolved through settlement. The settlement process necessarily implicates many ethical issues. Resolving these issues and determining a lawyer's professional responsibilities are important aspects of the settlement process and justify special attention to lawyers' ethical duties as they relate to negotiation of settlements.

The Ethical Guidelines for Settlement Negotiations have not been approved by the House of Delegates or the Board of Governors of the American Bar Association and, accordingly, should not be construed as representing the policy of the American Bar Association. However, the American Bar Association recommends the Ethical Guidelines for Settlement Negotiations as a resource designed to facilitate and promote ethical conduct in settlement negotiations. These Guidelines are not intended to replace existing law or rules of professional conduct or to constitute an interpretation by the ABA of any of the Model Rules of Professional Conduct, and should not serve as a basis for liability, sanctions or disciplinary action.