

The law in New Jersey states rather clearly that an attorney has the authority to settle a case on behalf of his/her client. If settlement agreement is reached by the attorneys, that agreement is binding and enforceable against the client irrespective of whether the attorney received the actual authority to settle a case from the client.
On many occasions a client will have second thoughts about the terms of a settlement and will seek to undo what had been done by his/her attorney, by claiming that a settlement was never authorized. Despite this contention courts will ordinarily deny an application to set aside a settlement. In that case, a client’s recourse is against the attorney in a legal malpractice action.
Clearly, in order to obviate a controversy of this nature, an attorney should always have the client present when the settlement is presented to the court to confirm its terms or the settlement should be conditioned on the client’s written approval.
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