Lawyer negotiated settlement without my consent to it

[CuriousCallie]

What is the name of your state? Georgia
Can my attorney "settle" a matter without my consent (his client)? I thought that I would have to review and sign off on the settlement with the other side?

This attorney I hired settled with the other side (said he signed all the documents for me) and I have yet to see the settlement document. There are two points that I was absolutely non-negotiable on and it is my understanding) from what he has explained to me--I've not seen the settlement offer), that he "gave" those points away in order to get a settlement. I was adamant about these points being non-negotiable and I have it in writing where I expressed it to my attorney that those issues were non-negotiable, hell could freeze over and I wasn't going to budge on them!

Now he tells me has a settlement check for me. I told him to stick it up his kazoo that I never agreed to the settlement (haven't even seen the offer/document) he has advised me he negotiated and reiterated that I did not want those points "given" away.

I have a feeling that this attorney just wanted to get some money (I hired him on a contingency basis) and to hell with me.

I have not signed off on anything and will not cash this check from his escrow account. What do I do next?

[seniorjudge]

First, tell us EXACTLY what the written contract with the attorney said about your questions.

[Dandy Don]

Did he know the amount that you wanted to settle this case for?

Are you unhappy with the amount of the settlement or the fact that your non-negotiable conditions were not complied with?

What type of case/lawsuit is this?

[CuriousCallie]

Okay, here goes. I had an equal (50/50) partner in three real estate transactions. All three were vacant land parcels and we purchased these three tracts (at $127,000, $76,000 and $52,000) going in with the idea we would hold them for 5 to 10 years and then sell them (land has been appreciating outside of Atlanta at a phenomenal rate and in 5 to 10 years we would most likely be able to double our investment in the Gwinett County area). My partner turned out to be a real bum and I ended up footing the mortgages and taxes on all three pieces of property (I didn’t want my credit to go to Halifax).

After much dunning, "good ole pardner" came to me with a “deal” that 1) He would catch up (pay me) the payments and taxes he had skipped that were his share in two equal installments spaced six months apart. 2) We agreed to deed two parcels (the $76,000 one and the $52,000 one) over to him completely and the other one (the $127,000 one) over to me completely at the prices we paid for each. This was to take some of the mortgage load off of both of us as since we were co-signers, the entire amounts of the debts were on each of our credit. The mortgages were also refinanced in our respective names. 3) Additionally, within this new contract it was spelled out that if/when we sold our parcels of land, the profit on each of the three tracts (amount above the original price) would be split between both of us equally as/when/if they were sold. There was no time limit on selling these parcels. (Indeed, I plan on holding onto mine until it at least doubles in value – that was the original plan.) This contract was negotiated and written by my attorney (at my expense, of course).

And of course "good ole pardner" never paid a dime on the payment plan (Item #1) either. I went to court and sued him for the back payments and taxes he owed me (plus interest) and won a judgment. I did this MYSELF and had no legal representation at that point, it was pretty cut and dried and "good old pardner" defaulted on everything (never filed an answer to the complaint nor showed up in court). So I obtained this judgment myself. It was in the amount of $8,036.79. He never paid the judgment (so far, he is batting 1000) and I executed the judgment against both the parcels he owned.

Well, low and behold, he sold one of his parcels approximately six weeks ago for $15,000 above what we paid for it. This is when I retained my attorney on a 1/3 cut basis because I knew this was going to get sticky. Under the previous contract I was entitled to ½ or $7,500 of the profit. Also, "good ole pardner" had a problem: since I had executed the judgment against his parcels, the title company would not write the title insurance until that judgment had been cleared.

This is where I get upset with my attorney. The closing attorney contacted my attorney and told him to give him a “number” to get the judgment cleared so the title could be transferred. My attorney came back to me and told me that they wanted to “settle”. I said good, they can go down to the Clerk of Courts and see how much interest the judgment had accrued and pay off the $8,036.79 judgment plus interest, plus the $7,500 (my part of the profit). That’s what I would “settle” for.

My attorney said that there is no way they will “settle” for that – What I didn’t understand, what’s to “settle”? It seemed pretty cut and dried to me! $15,036.79 plus the interest on the judgment would get "good ole pardner" his parcel cleared for the title company. I made it clear to my attorney AT THAT POINT, that I would NOT “settle” for less and I would NOT give up my right (under the original contract) to sue him for my share of the profit if/when he sold the second tract. I made these two points VERY, VERY clear and they are in writing to my attorney.

I get a call this week from my attorney with GOOD NEWS, he has a cashier’s check from the closing attorney for the SETTLEMENT! I said what do you mean, you “settled”? Well he cut a deal that the partner is going to pay off the judgment plus interest. I said, “that’s it? No ½ profit from the sale?” My attorney said, “yes, and I worked hard to get us the judgement amount” -- Worked hard, my foot! -- this attorney didn't even obtain that judgment in the first place. In addition, within this settlement, my attorney waived my right to sue this jerk on down the road when he sells the second parcel. My attorney claims that he did this to “protect” me if/when I sell my parcel. I don’t need “protecting” and I never asked for that. I might never sell my tract, I might sell it tomorrow, but that was never even discussed as being part of the “deal”.

I hit the ceiling and told my attorney to dare not deposit the “settlement” check and to not release the judgment. He told me that he had already signed everything for me and that he had deposited the settlement check in his escrow account (of course he took a third for himself).

I am FROSTED! And as a side note, I never signed a “contract” for representation with this attorney on this case. It was a verbal agreement that he work on a 1/3 contingency.

I have not deposited the check he cut me out of his escrow account and I have sent him a letter that I am not going to deposit it and this was not a settlement I would have ever agreed to. I never even got to review a copy of this settlement prior to his “signing everything for me”.

Do I sue my attorney now?

[Dandy Don]

Yes, and this time sign a fee agreement. A verbal agreement is worth nothing. See what the financial limits are for small claims court to see whether your case could be heard there or not.

Only problem I foresee is exactly what legal charges this attorney is going to be faced with, but your attorney can help figure that out.

So glad you had your rules in writing--that is going to help win your case. He obviously sold you out just so he could collect a fee, to your detriment. And then to never have shown you the settlement documents is just unconscionable.

DANDY DON IN OKLAHOMA (tiekh@yahoo.com)

[Darth]

Two Words
Notry Public

[CuriousCallie]

Now my attorney has sent me a letter and the exact language is:
"This correspondence will confirm that you have authorized me to finally and fully settle this matter for the payment of $8,162.95." (this was the judgement plus interest).

Questions:
1.) Is this letter to "cover his butt" because he did NOT have a signed contract to represent me in this case?
2.) I have my documentation I sent him prior to him "settling this" that tells him NOT to settle unless my two points are met. I also have two faxes sent after he informed me of the "settlement", telling him that I did not agree to it and I was not going to settle for just the judgement. Probably a good thing I saved that? Keep hanging on to those? For the next attorney I have to hire to straighten this out?
3.) My attorney has yet to forward me any payment from this "settlement". Isn't that sort of odd? I mean if he "settled" this and he received the check from the other party (as he told me he did). Once again, is this letter probably a "testing of the waters" to see if I will tell him he is full of BS again and I do not "confirm" his right to settle this and I have never agreed to his "negotiated" terms of this so-called settlement? I need to respond to this latest letter in a timely manner and once again, tell him BS, I don't agree?
5.) What is the correct legal terminology when you want to appeal a settlement? I am thinking of taking this whole mess to another attorney.