In 2009 the Kentucky Supreme Court substantially revised the Kentucky Rules of Professional Conduct. Articles in this index written before 2009 citing Kentucky Rules of Professional Conduct must be checked for any changes to the rule cited.
The Kentucky Supreme Court in Clark v. Burden, 95-SC-572-DG (3/21/96) considered whether a lawyer as agent has the apparent authority to settle a client's case. The court held " The trial court must determine whether appellant gave her attorney express or actual authority to settle the case ... If the court finds that such authority was given, the settlement should be enforced. Even if the trial court finds that no such authority was given, if it should also find that appellees were substantially and adversely affected by their reliance upon the purported settlement, enforcement would be appropriate. On failure to find one or the other of the circumstances... the court should determine that no settlement came into existence." The dissent expresses well the systemic complexities that denial of the lawyer-agent's apparent authority to settle may have. The only sure way to avoid problems under this ruling is to "get it in writing" from the opposing party. This opinion is a must read for all Kentucky lawyers.
323 West Main Street, Suite 600 | Louisville, Kentucky 40202 | Phone: 502-568-6100 | Fax: 502-568-6103
Disclaimer: The contents of this Web site are intended for general information purposes only and should not be construed as legal advice or legal opinion on any specific facts or circumstances. It is not the intent of this Web site to establish an attorney’s standard of due care for a particular situation. Rather, it is our intent to advise our policyholders to act in a manner which may be well above the standard of due care in order to avoid claims having merit, as well as those without merit. In the event any statement on the Web site differs from a statement in an issued policy the policy will control.