Do Lawyers Lie About Settlements?

When someone wronged you, you expect your attorney to be forthcoming in their representation of you. Attorneys have a duty to be honest to clients, courts, and other attorneys as dictated by the moral code of the state’s bar association. However, sometimes legal representation goes wrong. If you have serious issues with an attorney and cannot work them out, you might be able to contact a legal malpractice attorney.

If you believe all attorneys are liars after being lied to by one, you should know that not all attorneys are dishonest or liars and not all lies are intentional. Legal ethics bind an attorney to represent you honestly and to the best of their ability. A legal malpractice attorney can review your case and determine if the lying is a mistake, malpractice, or something else.

 When Lying Is Malpractice or Something Else

It is often difficult to win a malpractice case because of the evidence you would need to prove the attorney’s wrongdoing, including lying. To complicate matters, you also have to prove that the attorney purposefully lied.

#1. Inadvertent Lying

In some cases, an attorney might repeat misinformation from another attorney or tell you something based on what the attorney heard from someone in the case even you. In these cases, the attorney should explain how they arrived at that conclusion and find a solution acceptable to both of you.

For example, an attorney tells you that you can only recover up to $200,000 in a car accident case. You later find out that you could have recovered up to $500,000. The attorney based their statement on what the attorney for the car insurance company told them.

If the policy is clear that the at-fault driver’s insurance limit was $500,000 and you can prove that your attorney did not meet a duty of care by reviewing the policy themself, you might have a malpractice case. However, if the insurance policy is unclear, you might not meet the criteria to hold your attorney responsible.

#2. Is Omission a Lie?

In some cases, an attorney might forget to tell you something about your case. Some omissions could damage your case, while others could benefit your case even though you might disagree.

For example, the defendant’s attorney tells your attorney that an insurance policy only covers $200,000 and the defendant does not have money to cover all of your damages. Your attorney does not tell you this but instead convinces you to go to trial. The court rules in your favor and rules that the defendant must pay you $1,000,000 for damages. However, you can only collect $200,000 from the defendant’s insurance company.

You posit that you would have settled for $200,000 instead of going through the hassle of a trial, even though obtaining a judgment against the defendant is better than walking away with $200,000 and no chance of recovering the additional money, especially if the defendant could pay the judgment.

Because going to trial is in your best interest, you might not have the ability to prove all the elements of malpractice.

#3. Intentional Lying

An intentional lie can be a violation of bar ethics rules. For example, using the above car accident case scenario, your attorney tells you that the at-fault driver has a $200,000 limit on their insurance policy. However, the attorney is tired of your case because the insurance company refuses to offer a fair and reasonable settlement. The attorney believes going to trial and that your medical bills and other damages will cost more than $500,000. You will not recover enough money to pay your medical expenses, other damages, and attorney’s fees and costs.

The attorney wants to bail before they get in too deep, so they tell you that you can only recover $200,000 the insurance company’s last offer. You later find out that you could have collected $500,000 because your injuries caused long-term disabilities.

You may have a malpractice case against the attorney, and the state bar association might levy fines against the attorney or could even suspend or revoke their license to practice law.

#4. What the Florida Bar Associations Says About Communication

While the Florida Bar Association does not explicitly state that a lawyer cannot lie to a client, it does state that an attorney must:

• Keep the client informed about their case;
• Keep the client informed of any decisions or circumstances regarding the client’s case;
• Comply with a client’s requests for information;
• Explain the client’s case so that the client can make reasonable decisions regarding the attorney’s representation; and
• Communicate the ethics rules that limit an attorney’s actions.

Elements of Malpractice

As a plaintiff in a legal malpractice lawsuit, you have to prove four elements to prove your case:

#1. Duty

You have to show that the attorney owed you a duty of care, which is the existence of the attorney-client relationship. You could prove this by producing a copy of your retainer contract with the attorney.

An attorney’s duty of care means that the attorney must use the same care in their representation of you that other attorneys would use, including skill and diligence.

#2. Breach

You have to show that the attorney breached that duty of care by lying to you or by other actions or inactions, such as starting settlement negotiations before the statute of limitations runs for the type of case you have.

#3. Causation

You also have to prove that the outcome of your case would have been more favorable to you if not for the attorney’s lies or other actions or inactions. Thus, the harm you suffered receiving fewer damages than you should have is directly related to the attorney’s actions or inactions.

However, simply losing a case is not enough to prove causation. No attorney is guaranteed to win your case, and no attorney should ever promise that. A legal malpractice attorney can review your case to help determine whether you might have received a higher settlement or won at trial.

#4. Damages

If a legal malpractice attorney finds that you suffered damages by your accident attorney’s actions or inactions, the damages you receive depend on what you could have recovered if not for the attorney’s lie or other actions or inactions. For example, your attorney did not send the initial demand letter before the end of the statute of limitations when the defendant was clearly at fault for your injuries.

If not for the attorney’s negligence in contacting the insurance company before the end of the statute of limitations, you would have won the case. Thus, you could recover damages from the negligent attorney.

Statute of Limitations for Legal Malpractice

In most cases, your legal malpractice case would be for professional malpractice, which has a two-year statute of limitations in Florida. However, if your case hinges on a lie involving the specific performance of a contract, you might have just one year to bring the action against your attorney.

As soon as you determine that your attorney’s lies caused you harm, you should contact a legal malpractice attorney. While two years seems like a long time, it goes by very quickly, especially if you and your attorney have issues obtaining the documentation you need.

As soon as you learn of the lie or other legal malpractice, you should immediately contact a legal malpractice attorney to determine whether you have a case

What You Need to Start a Legal Malpractice Claim After an Attorney Lies

You will have to provide documentation to prove that an attorney’s lie caused you to lose money.

Some of the documents you might have to provide include:

• Your retainer contract.
• Copies of correspondence between you and the attorney’s office, including letters, emails, and texts.
• Documentation showing how you determined the attorney lied to you. For example, if the attorney said the most you could settle for was $200,000, and you know it could have been $500,000, you would provide a copy of the defendant’s insurance policy and documentation where the attorney said the defendant’s insurance policy limit was $200,000.
• Any other documents, including your case file, to help your legal malpractice attorney determine whether your attorney lied to you.

If you have trouble obtaining the required documents, always let your legal malpractice attorney know as soon as possible so that they can determine the best way to obtain that information whether it is writing a letter to the firm, holding depositions, or forwarding requests for production or subpoenas.

Consequences of Lying and Other Malpractice Actions

While it is rare that an attorney intentionally lies about a settlement, it is not unheard of. A Code of Ethics binds attorneys.

The bar association could take several actions against an attorney that does not adhere to the code of ethics.

Depending on how gross the malpractice is, the bar association could:

• Fine the attorney (restitution).
• Suspend the attorney’s license.
• Revoke the attorney’s license.
• Permanently revoke an attorney’s license.
• Public reprimand.
• Probation (sometimes used with other punishments).
• Admonishment (this is the lowest form of sanctions).
• Limiting the attorney’s practice.
• Requiring continuing legal education.
• Requiring the attorney to retake the bar exam.

The sanction depends on how bad the malpractice is and whether it is an attorney’s first time facing charges of negligence and/or legal malpractice.

How a Settlement Works

Once you decide to retain the attorney, they need time to review and investigate your case. Depending on the complexity of your case, it could take a few weeks or more for the attorney’s team to conduct an investigation. One of the first things an attorney does is request your medical records and the police report if you have not already provided them.

Once the attorney reviews the case, including the evidence they gathered, they contact the insurance company. If you did not notify the insurance company of your accident, let your attorney know so that they can call the insurance company to make sure they get your claim started.

In the demand letter, the attorney will tell the insurance company the amount you will settle for this is an amount that the attorney comes up with by reviewing medical records and asking you questions about your injuries. The attorney might also need to speak with your doctors.

The insurance company can accept the settlement, which is rare, or send a counteroffer. If you are happy with the counteroffer, the attorney drafts an agreement. If you are not, you can submit another offer or withdraw from settlement negotiations and move forward with litigation.

Once everyone accepts the agreement, the insurance company processes the agreement and forwards a check to your attorney. Depending on the amount of the check, it could take up to 14 days for it to clear.

Once the check clears, the attorney can close your account. Before they deduct fees and costs for representing you, they pay any outstanding medical expenses and reimburse your insurance companies health and auto for a car accident.

Once the attorney pays all outstanding expenses, they cut you a check for the balance. It does take some time it could be up to a month for you to get your money once you settle.

If you have a valid claim against an attorney who lied to you and you win that case, the settlement process is very similar. However, the legal malpractice attorney does not have medical expenses to pay on your behalf, unless your previous attorney did not pay them.

If you suffered damages because of the actions or inactions of an attorney, contact a legal malpractice attorney for a free case evaluation.