Own Up to Your Mistake and Give the Client Time to Consider a Settlement Offer

I discovered my associate missed a statute of limitations on a small personal-injury case. I brought the client in and fully explained everything to the client and gave the client the letter telling the client that the firm was neglectful. I offered the client $7,000 to resolve the matter with a release from liability. I told the client that I believed that was a fair resolution based on the minor injury and limited medical treatment and only several days’ loss of employment. The client accepted the offer and signed the release. Did I do anything wrong?

Yes. Although it’s important to be totally candid with clients in terms of admitting one’s mistakes and so advising the client, the lawyer has to understand that once the lawyer commits a mistake then there is a potential conflict between the lawyer and the client. The conflict arises because it is in the lawyer’s interest to resolve the mistake as quickly as possible and to avoid litigation. From the client’s standpoint, it might be in the client’s interest not to resolve the case quickly and it might be in the client’s interest to seek independent legal counsel and bring litigation since there could be a much greater recovery.